The Moderating Role of Product Market Non-Financial Performance in the Relationship between ESG Activities and Financial Performance in Listed Companies in the Tehran Stock Exchange

Abstract

During the past decade, the increase of stakeholders' awareness, in the context of the operational effects of companies on the environment and society, and the key role of management methods in the field of sustainable performance development by companies, led to the expansion of views on the category of sustainable performance of companies from three dimensions: environmental, social and corporate governance. In this regard, this research aims to investigate the relationship between the moderating role of non-financial performance of environmental, social and management activities and financial performance among the companies admitted to the Tehran Stock Exchange in 6 years between 2017 and 2022. The statistical population of this research was the companies admitted to the Tehran Stock Exchange, and 147 companies were selected using the systematic elimination method. To test the hypotheses, the multivariate regression method of combined data and Eviews statistical software were used. The findings of the research showed that there is a positive and significant relationship between environmental, social and corporate governance activities with financial performance in companies listed on the Tehran Stock Exchange. The research findings regarding the moderating role of non-financial performance showed that non-financial performance has a moderating role on the relationship between environmental, social and corporate governance activities and financial performance

Keywords

• non-financial performance
• environmental activities
• social and corporate governance
• financial performance