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IMPACT OF ESG ON CORPORATE PERFORMANCE: A MULTIDIMENSIONAL STUDY OF INDIAN LISTED COMPANIES

2026-09-01T00:00:00Z

Title: IMPACT OF ESG ON CORPORATE PERFORMANCE: A MULTIDIMENSIONAL STUDY OF INDIAN LISTED COMPANIES Authors: JAIN, PRACHI; Malhotra, Priya (SUPERVISOR); Aggarwal, Nikunj (CO-SUPERVISOR) Abstract: In the evolving corporate governance landscape and sustainable business strategy, Environmental, Social, and Governance (ESG) frameworks have emerged as critical instruments for firms to signal responsibility, enhance transparency, mitigate risks, and foster long-term value creation. ESG disclosures are increasingly viewed not merely as compliance tools but as strategic levers that shape firm behaviour, influence stakeholder relationships, and contribute to financial outcomes. Despite growing scholarly and practitioner interest, the existing literature on the ESG–corporate performance nexus remains fragmented, characterised by a lack of consensus on theoretical foundations, limited contextual diversity, and minimal integration of firm level financial policy variables, such as dividend behaviour. This doctoral thesis addresses these research gaps through a structured, multi-method investigation that spans bibliometric analysis, advanced panel econometrics, meta analytic synthesis, and logistic regression modelling. The central aim is to examine how ESG disclosures influence corporate performance, measured across accounting, market, and financial dimensions, as well as from the dividend policy perspective, and how these effects are moderated by contextual factors such as industry classification, national economic development, and firm-specific attributes. The thesis also highlights the underexplored relationship between ESG engagement and dividend policy, thereby contributing novel insights to the literature on sustainable finance and corporate financial strategy. The thesis is organised into seven interrelated chapters, beginning with the identification of gaps in the literature through a comprehensive bibliometric and thematic literature review guided by the TCCM (Theory–Context–Characteristics Methodology) framework. This hybrid review of previous studies identifies three dominant research streams: (1) ESG's influence on firm value and ownership dynamics; (2) stakeholder engagement, regulation, and ESG strategy; and (3) ESG as a risk management and innovation tool. The review highlights critical gaps, including an overreliance on a single theoretical perspective (e.g., stakeholder theory), the underrepresentation of emerging markets (especially India), and a narrow focus on v conventional performance outcomes, with insufficient attention to dividend-related metrics. To address these gaps, the second phase of the research empirically explores the ESG–corporate performance nexus within the Indian context. As a large and rapidly growing emerging economy with rising sustainability obligations and evolving ESG disclosure mandates (e.g., SEBI‘s BRSR framework), India offers a ground for such analysis. The empirical analysis utilises data on 605 distinct corporations listed on the National Stock Exchange of India (NSE) over the period 2015–2023. ESG data are obtained from Refinitiv Eikon, while financial and corporate data are sourced from CMIE Prowess. The sample comprises firms satisfying the predefined listing and data-availability criteria required for the analysis. Utilising the Method of Moments Quantile Regression (MMQR), the study finds that ESG disclosure, both aggregated and disaggregated into E, S, and G dimensions, has a positive influence on corporate outcomes. Notably, the impact of environmental disclosures is stronger in higher performing quantiles. At the same time, the effects of social and governance dimensions vary, affirming the relevance of stakeholder and legitimacy theories in heterogeneous market settings. Extending this inquiry, the third empirical chapter incorporates industry-specific analysis by classifying 605 Indian-listed corporations observed over 2015–2023 into environmentally sensitive industries (SI) and non-sensitive industries (NSI) categories. The analysis is based on ESG information from Refinitiv Eikon and corporate financial data from CMIE Prowess, with the number of firm-year observations varying across years according to ESG data availability. Applying System-GMM estimation, the results reveal a divergent relationship between the two categories. While NSI firms benefit significantly from ESG disclosures, SI firms often encounter diminished or negative returns due to heightened compliance burdens and regulatory scrutiny. These findings challenge the validity of uniform ESG strategies and underscore the importance of sector-specific sustainability frameworks. The thesis then broadens its scope to the global context in the fourth empirical chapter, focusing on the cement industry, an archetype of environmentally intensive sectors facing urgent sustainability imperatives. Using an international sample of 70 publicly listed cement companies across 29 countries and 770 firm-year observations over the period 2013–2023, this chapter examines the moderating role of National Economic Development (NED) in the ESG–performance relationship. The initial dataset comprised 301 listed cement companies, from which firms with incomplete information were excluded based on the study's predefined data-availability criteria. vi ESG and financial information were obtained from Refinitiv Eikon, while country level GDP per capita was obtained primarily from the World Bank, with IMF data used where required. The analysis reveals that corporations in developed economies are better positioned to convert ESG engagement into superior financial outcomes due to stronger institutional support, regulatory infrastructure, and market maturity. Conversely, companies in developing economies face structural constraints that limit the strategic and economic benefits of ESG adoption. These results reinforce the Institutional Difference Hypothesis (IDH) and emphasize the contextual sensitivity of ESG–performance linkages. While prior chapters of this thesis establish the relevance of ESG disclosures in shaping accounting-based, financial, and market performance outcomes, profitability alone does not fully capture how sustainability strategies translate into shareholder value. ESG initiatives often require substantial long-term investments, potentially altering firms‘ internal cash allocation decisions and creating trade-offs between reinvesting in sustainability and distributing earnings to shareholders. Dividend policy, therefore, emerges as a critical financial channel through which the economic consequences of ESG engagement can be assessed. As dividends remain a primary consideration for shareholders, integrating ESG into dividend decisions provides deeper insight into how firms balance stakeholder-oriented sustainability objectives with shareholder wealth maximisation. Recognising this linkage, the thesis extends the ESG-performance discourse by examining dividend policy as a complementary and policy-relevant outcome of ESG disclosure. Hence, the next chapter employs a meta-analytic approach to consolidate empirical evidence on the relationship between ESG disclosures and dividend policy, a relatively underexplored area in sustainability research. Synthesising previous peer reviewed studies, the analysis finds a statistically significant positive relationship between ESG and dividend payouts. Among the ESG pillars, governance disclosures have the greatest influence. Subgroup analyses reveal that firm size, profitability, and national economic development account for the observed heterogeneity in the literature. These findings empirically validate agency and signalling theories in the ESG–dividend domain, suggesting that transparent ESG practices enhance investor trust and shape dividend distribution policies. In the sixth empirical chapter, we focus on the global hospitality sector, a service oriented industry where sustainability and financial outcomes are closely interlinked. Using ESG and financial data for publicly listed hospitality firms across countries, the study covers the period 2004–2023. Firms were identified using the relevant North vii American Industry Classification System (NAICS) categories, following Hwang et al. (2024). The initial dataset comprised 1,401 corporations, which was reduced to 918 unique firms after applying the required ESG and financial data-availability criteria. Using logistic panel regression, the study investigates how ESG performance affects both the likelihood and stability of dividend payments. While higher ESG performance increases the probability of dividend issuance, it is negatively associated with dividend stability, indicating that firms engaged in sustainability initiatives may prioritise reinvestment over consistent shareholder payouts. This duality supports the pecking order theory and further illustrates the trade-offs between short-term financial policy and long-term sustainability goals in capital-intensive industries. The findings of this thesis carry significant implications for theory, practice, and policy. Theoretically, the research advances ESG literature by integrating diverse frameworks, including stakeholder theory, agency theory, signalling theory, pecking order theory, and institutional theory, offering a more comprehensive understanding of the ESG-performance nexus. By contextualising ESG impacts within emerging markets, such as India, and across environmentally sensitive and non-sensitive sectors, the study challenges the ―one-size-fits-all‖ paradigm. It underscores the role of national economic development and institutional maturity in moderating ESG outcomes. Practically, the findings provide actionable insights for corporate managers, investors, civil society, and regulators, underscoring the need to align ESG investments with sector-specific risk exposures, strategic priorities, and diverse stakeholder expectations. For managers, the results highlight ESG as a value enhancing strategic tool rather than a compliance obligation. For investors and civil society, ESG disclosures emerge as credible signals of transparency, governance quality, and long-term accountability. For policymakers and regulators, the thesis highlights the importance of developing nuanced, sector-specific, and context-aware ESG disclosure frameworks that enhance data comparability, reduce information asymmetry, and improve the real economic effectiveness of sustainability reporting across industries and institutional settings. Despite these contributions, several avenues remain open for future inquiry. Limitations related to data quality, ESG score standardization, and sectoral coverage suggest the need for more granular, text-based, or qualitative approaches to ESG assessment. Expanding the research to include additional sectors (e.g., healthcare, technology, retail) and broader geographic regions, particularly in underrepresented emerging and frontier economies, can offer richer cross-national comparisons. Future research can benefit from expanding sectoral and geographic scope, applying advanced causal inference techniques, and incorporating qualitative or text-based viii ESG metrics. Greater attention to underexplored financial outcomes, such as innovation efficiency, capital allocation, and risk management, can further enrich the field. A more interdisciplinary and context-sensitive research agenda will be crucial to capturing the evolving role of ESG in corporate strategy and sustainable value creation. A greater emphasis on interdisciplinary and behavioral perspectives will also enhance our understanding of managerial decision-making and investor responses to ESG, helping shape more resilient and sustainable business models in the future. This thesis makes a comprehensive and methodologically rigorous contribution to the ESG field by integrating bibliometric, panel-based, meta-analytic, and industry specific approaches. It captures the diversity of ESG outcomes across various contexts, from India to the global, and from sectoral to firm-level, encompassing performance to dividend policy, thus offering a holistic lens through which scholars, practitioners, and policymakers can better understand the evolving dynamics of corporate sustainability.

ENVIRONMENT AND FINANCIAL MARKETS: ASSESSMENT AND RISK

2026-06-01T00:00:00Z

Title: ENVIRONMENT AND FINANCIAL MARKETS: ASSESSMENT AND RISK Authors: GUPTA, ADITYA; Malhotra, Priya (supervisor) Abstract: This dissertation examines how climate risk, decomposed into transition risk and physical risk, is priced across G7 equity markets and the US fixed income market over the period February 2016 to May 2025. Using a Transition Risk Index (TRI) and a Physical Risk Index (PRI) as the primary explanatory variables, alongside monthly benchmark equity index returns for all seven G7 countries and monthly US 10-year Treasury yield data, this study conducts six empirical analyses: pooled and fixed effects panel OLS regressions, a time-series OLS of climate risk on bond yield changes, 24-month rolling regressions to capture time-varying sensitivity, individual country level regressions, portfolio level Climate Value at Risk (Climate VaR), and an analysis of bond-equity correlation dynamics under climate stress. The results show that transition risk exerts a statistically significant and negative effect on G7 equity returns in pooled OLS (beta = −0.312, p < 0.001), a finding that is robust to the inclusion of country fixed effects. In the bond market, higher transition risk is associated with rising yields, significant at the 5% level. Physical risk, by contrast, does not show significant pricing in either market, a finding consistent with the hypothesis that markets are slow to incorporate gradual climate trends. The Climate VaR analysis reveals that equity tail risk increases meaningfully during periods of high transition risk. Rolling regressions reveal that the sensitivity of equity returns to both risk indices is not stable over time, with notable shifts around the COVID-19 period and the Russia-Ukraine conflict. Taken together, these findings suggest that while transition risk is increasingly priced into G7 financial markets, physical risk remains systematically underweighted, a market inefficiency with implications for portfolio construction and climate-related financial regulation.

ROLE OF PERSONALITY IN INTENTION TO ADOPT SOCIAL MEDIA: A STUDY OF ENTREPRENEURS

2026-09-01T00:00:00Z

Title: ROLE OF PERSONALITY IN INTENTION TO ADOPT SOCIAL MEDIA: A STUDY OF ENTREPRENEURS Authors: VIJAY, SHILPI GUPTA; MOOKERJEE, AMIT (SUPERVISOR) Abstract: The growing reliance on social media as a strategic tool for entrepreneurial ventures has intensified academic interest in understanding the determinants of its adoption. However, existing research on social media adoption has largely relied on technology-centric or performance-oriented models and has tended to treat personality traits and entrepreneurial traits as separate explanatory constructs, often assuming direct effects on adoption behaviour. Moreover, limited attention has been given to the cognitive mechanisms through which individual traits influence adoption decisions, particularly in entrepreneurial and SME contexts. Addressing these theoretical and methodological gaps, the present study investigates the role of personality and entrepreneurial traits in shaping entrepreneurs‟ intention to adopt social media, with Perceived Innovation Characteristics of Social Media (PICSM) conceptualised as a key mediating mechanism. The study adopts a sequential mixed-methods research design, integrating an exploratory qualitative phase with an explanatory quantitative phase. The qualitative phase employed in-depth interviews with entrepreneurs to explore their lived experiences, identify salient personality and entrepreneurial traits, and understand how social media is perceived as an innovation. Importantly, this phase led to the identification of consistency as a distinct entrepreneurial capability, emerging beyond traditional personality frameworks, while neuroticism did not emerge as a salient or explanatory trait in the entrepreneurial context. Insights from the qualitative findings informed the development of an integrated conceptual framework and the contextual scale development of entrepreneurial traits and PICSM. The quantitative phase utilised survey data from 702 entrepreneurs and applied Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Partial Least Squares Structural Equation Modelling (PLS-SEM) to validate the measurement scales and test the hypothesised relationships. Mediation analysis was conducted, followed by post hoc analyses including Importance-Performance Map Analysis (IPMA), Necessary Condition Analysis (NCA), and Combined IPMA (cIPMA) to identify high-impact and necessary traits. The findings reveal that while personality traits provide a psychological foundation, entrepreneurial traits exert a more immediate and practically significant influence on social media adoption intentions. Crucially, the results demonstrate that the influence of both personality and entrepreneurial traits on adoption operates primarily through PICSM, establishing it as a central mediating construct. Trait-level mediation results indicate that innovativeness, creativity, openness, resilience, agreeableness, extraversion, risk-taking, self-efficacy, and the newly identified trait of consistency significantly influence social media adoption intentions through PICSM. Post hoc analyses further show that social media adoption among entrepreneurs is a staged psychological process, vi wherein certain traits-particularly consistency and innovativeness-function as critical and necessary conditions at higher levels of adoption. The study makes several important contributions. Theoretically, it advances entrepreneurship and digital adoption literature by integrating personality and entrepreneurial traits into a single, context-sensitive framework, thereby refining trait based explanations of entrepreneurial behaviour and supporting arguments that traditional personality models should be complemented by capability-driven and behavioural consistency perspectives. It also extends Diffusion of Innovation Theory by empirically demonstrating that perceived innovation characteristics are shaped by individual traits, elevating PICSM as a key linkage between personality, entrepreneurial capabilities, and adoption intention. Methodologically, the study contributes by developing and validating contextually grounded measurement scales, including consistency as a novel entrepreneurial trait, suitable for entrepreneurship research in emerging-economy contexts. Practically, the findings offer actionable insights for entrepreneurs, educators, policymakers, and platform designers. The results indicate that successful social media adoption is not primarily dependent on inherent personality dispositions, but rather on developable entrepreneurial capabilities, particularly innovativeness, creativity, resilience, self-efficacy, and consistency. Entrepreneurship educators and incubators are therefore encouraged to shift training programs from personality-based interventions toward capability-building, behavioural discipline, and innovation-oriented skill development. Policymakers aiming to promote SME digitalisation can leverage these insights to design interventions that reduce perceived complexity and enhance compatibility and usefulness perceptions. Finally, social media platform designers can utilise these findings to create features, onboarding processes, and support services that align more closely with entrepreneurs‟ innovation perceptions and behavioural routines, thereby facilitating broader and more inclusive adoption.

QUALITY OF EMPLOYMENT AND SKILL DEVELOPMENT IN INDIA

2026-06-01T00:00:00Z

Title: QUALITY OF EMPLOYMENT AND SKILL DEVELOPMENT IN INDIA Authors: ISHA; Jain, Neha (SUPERVISOR) Abstract: The quality of employment has emerged as a central concern in labour market analysis, particularly in developing economies such as India, where a large share of the workforce remains engaged in low-quality, informal and precarious work. While aggregate employment figures have improved over the decades, they mask significant disparities in job quality across dimensions such as social-security coverage, wage adequacy, regularity of employment and working conditions. Simultaneously, skill development has been recognised as a critical policy instrument for upgrading the quality of labour supply and enhancing workers' capacity to access and retain good-quality employment. This dissertation examines the relationship between skill development and quality of employment in India using unit-level data from the Periodic Labour Force Survey (PLFS) 2022–23. Quality of employment is defined as a binary outcome, distinguishing high-quality from low-quality employment on the basis of the nature of the employment contract, social-security entitlements and regularity of work. A probit regression model is employed as the primary estimation strategy, given the binary nature of the dependent variable, with robust standard errors throughout. The empirical analysis incorporates key socioeconomic determinants including training type, education level, gender, work experience and its quadratic term, location and caste category. The findings reveal that formal skill training and higher education are both strongly associated with a significantly higher probability of accessing high-quality employment. Gender-based disparities are pronounced, with female workers facing substantially lower probabilities of high-quality employment than their male counterparts. Urban location is strongly associated with better employment quality, reflecting the structural concentration of formal-sector jobs in urban areas, while caste-based differences, though statistically significant, are relatively modest in magnitude. The results underscore the importance of investing in skill-development infrastructure, particularly formal vocational training, as a lever for improving employment quality. Policy recommendations include strengthening the coverage and vi quality of formal training programmes, addressing gender gaps in labour-market access, and enhancing the reach of formal-sector employment in rural areas. The findings are associational rather than causal, given the cross-sectional design, and this limitation is acknowledged throughout.