The Impact of ESG Indices on the Investment Attractiveness of Companies in Sustainable Business Environments
DOI:
https://doi.org/10.5281/zenodo.17975125Keywords:
ESG indices, investment attractiveness, cost of capital, sustainable development, institutional investors, corporate reporting, financial resilience.Abstract
This study aims to identify the impact of ESG indices on the investment attractiveness of companies operating in sustainable business environments. The methodology employs a systematic analysis of empirical studies based on global samples of over 1,500 companies, utilizing panel data models and comparative quintile analysis by ESG ratings. The findings demonstrate that companies with high ESG scores exhibit a 15–20 % reduction in weighted average cost of capital compared to lower-rated counterparts. Three key influence channels were identified: reduction in risk premium, shifts in institutional investor behavior, and regulatory changes in corporate reporting. The results confirm that ESG indices serve as indicators of not only reputational appeal but also financial resilience of companies during crisis periods.References
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Copyright (c) 2025 Halyna Mieniyailova, Maryna Kharchenko, Victoria Krush
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