FINANCIAL FACTORS AND ESG PERFORMANCE: AN EMPIRICAL ANALYSIS OF EASTERN EUROPEAN COMPANIES

In the current context of corporate sustainability, the ESG (Environmental, Social, and Governance) score has become a key indicator of companies’ non-financial performance, influencing investors’ decisions and development strategies. This study analyzes the impact of financial factors – market capitalization, return on assets (ROA), total assets, and leverage – on the ESG performance of 100 companies in Central and Eastern Europe. Using linear regression, the results suggest that firms with higher market capitalization and higher profitability tend to have higher ESG scores, while asset size and leverage do not have a significant influence. These findings highlight the importance of financial health in adopting sustainable practices and provide an empirical basis for future research on the relationship between financial performance and corporate sustainability in emerging economies.