The Analysis of the Relationship Between ESG and Profitability of Stocks by Linear Regression

DOI

10.2991/978-94-6463-042-8_100How to use a DOI?

Keywords

ESG performance; Nasdaq; Linear regression model; Profitability

Abstract

ESG (Environment, social and governance) nowadays becomes an important indicator for investors to consider those investing decisions. This passage will use a linear regression model to show whether ESG factor will influence companies’ profitability positively. The author sampled 100 companies from Nasdaq randomly. And to measure the profitability, I choose Net Profit Margin as the dependent variable for our linear regression model. Since the Net profit margin is a ratio of profitability, the control variables will not use profitability ratios, and the author chooses four control variables from valuation and liquidity aspects. Through the research, the author finds out that ESG performs positively and significantly on the net profit margin standing for profitability.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zhifei Wu
PY  - 2022
DA  - 2022/12/29
TI  - The Analysis of the Relationship Between ESG and Profitability of Stocks by Linear Regression
BT  - Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)
PB  - Atlantis Press
SP  - 699
EP  - 703
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-042-8_100
DO  - 10.2991/978-94-6463-042-8_100
ID  - Wu2022
ER  -