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Purpose: This paper examined the impact of Environmental, Social and Governance (ESG) scores of for-profit colleges, universities, and professional schools on their market and financial results. Design/methodology/approach: Sample data from 50 companies, national and international, listed on a stock exchange and with ESG data available from 2012 to 2021 was obtained on the EIKON-REFINITIV information database. Performance variables comprised Tobin’s Q and Market-to-Book (MTB), widely adopted in similar economic studies. Return on Assets (ROA) and Return on Equity (ROE) conformed to the financial performance variables. Explanatory variables consisted of ESG combined, ESG Social Pillar, Environmental Pillar, and Governance Pillar indexes. The analysis used the Generalized Method of Moments regression (GMM). Findings: ESG combined showed a significant positive relationship with Social Pillar scores and financial performance, represented by ROE and ROA, as found by other studies. Conversely, we observed a significant negative relationship between ESG combined and Social Pillar scores and market indicators (Tobin’s Q and MTB). Practical implications: Results indicate that although ESG combined, Social Pillar scores, and financial performance are positively related to financial results, these do not reflect positive market recognition or price shares. Originality: First-time results for this sector.
Júnior et al. (Fri,) studied this question.