Identifying the testing possibilities for the relationship between ESG and business performance

Abstract

The paper aims to map the area of ESG and its impact on business performance via systematicliterature review and apply the findings to the Czech environment. The research questions arestated and answered via systematic literature review of articles indexed in the Web of Sciencedatabase. The results show that the data for the existing research come from third-partydatabases that have created their methodologies for establishing ESG scores or ratings. Thedata in research papers are from large market-listed enterprises or directly from stock marketindicators. The hypotheses of all the analyzed papers were tested using statistical tools, and thepositive relationship between ESG and financial performance was proven, except for thebanking sector. The findings of this research are applied to the Czech environment, a researchquestion for empirical research is developed, and possible directions are suggested for furtherresearch activities in this area.