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The symbiosis of ESG principles and financial performance: a longitudinal analysis of emerging markets through education policy

Year: 2025

Type: article

Abstract: The aim of this study is to explore the long-term relationship between ESG principle compliance and financial performance of firms in the emerging market of Uzbekistan over a span of eleven years (2014-2024). According to panel data of 80 companies traded on the Tashkent Stock Exchange and employing regression models, the findings indicated that improving the composite ESG score has a statistically significant and positive influence on financial performance metrics. Specifically, one unit increase in the ESG score was associated with a 0.058-point improvement in return on assets (ROA). Further, the greatest impact of the three dimensions was «corporate governance», and sub-sample analyses also showed that there was greater effect of ESG on small and medium-sized firm performance compared to large firms. In conclusion, the findings suggest that in the context of Uzbekistanʼs emerging economy, using sustainable practices is not just an ethical imperative but a sound business decision.

Source: Economic Annals-ХХI

DOI: 10.21003/ea.v215-05

Authors: Zulfiya Makhmudova, Gulrux Tillabayeva, Dilorom Khudaynazarova, Zebiniso Akhmedova, Maftuna Nurmatova, Dilfuza Khamzaeva

Institutions: Tashkent State Technical University named after Islam Karimov, Ferghana State University, Tashkent University of Information Technology, Bukhara State Medical Institute named after Abu Ali ibn Sino, Kokand State University

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W7130896067

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