Exploring ESG scores relationships with profitability

: a heteroscedastic approach across industries and across time

Abstract

This study examines the relationship between ESG Scores on profitability, measured by EBITDA per Share, across 10 U.S. industries from 2003 to 2023. Using data from Refinitiv Eikon, three regression models were applied: one focused on specific industries, showing the impact within each and two heteroscedastic regressions to study the overall performance across years and across industries. Industry-specific results indicate a small but increasing impact of ESG Scores on profitability in recent years. Overall Performance results show that the Basic Materials, Healthcare, Technology and Financials Industries experience the highest volatility of ESG Scores. These findings show the growing importance of ESG Scores in analysing profitability.

Date of Award	31 Jan 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Geraldo Cerqueiro (Supervisor)