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The ESG–Financial Performance Relationship: An Investigation of India’s Cement Industry

Varsha Goyal

Minnesota Journal of Business Law and Entrepreneurship2026https://doi.org/10.52783/mjble.120article
ABDC B
Weight
0.50

What the paper says

This study investigates the relationship between Environmental, Social, and Governance (ESG) performance and the financial performance of selected firms in the Indian cement industry. The analysis focuses on leading companies such as UltraTech Cement, Ambuja Cements, ACC Limited, Shree Cement, and Dalmia Bharat Limited. The study aims to examine how ESG practices influence corporate financial outcomes while controlling for firm-specific factors such as firm size and leverage. Panel data covering the period 2016–2025 were analyzed using descriptive statistics, partial correlation analysis, and panel regression techniques. The descriptive statistics indicate moderate financial performance and relatively consistent ESG scores across the selected firms. Correlation results reveal strong relationships between ESG indicators and financial performance variables, suggesting that sustainability practices are closely linked with corporate outcomes. Partial correlation analysis, controlling for debt and sales, shows significant associations between ESG dimensions and financial performance indicators such as return on assets (ROA) and return on equity (ROE). Furthermore, the panel regression analysis demonstrates that ESG performance has a meaningful influence on financial performance. Environmental, social, and governance factors generally exhibit positive relationships with profitability, although some ESG initiatives may involve short-term costs. Firm size shows a positive relationship with financial performance, while leverage has a negative impact. Overall, the findings suggest that companies adopting strong ESG practices are more likely to achieve sustainable financial performance and long-term competitiveness. The study highlights the growing importance of integrating sustainability and responsible governance into corporate strategy within the cement industry.

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https://doi.org/https://doi.org/10.52783/mjble.120

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@article{varsha2026,
  title        = {{The ESG–Financial Performance Relationship: An Investigation of India’s Cement Industry}},
  author       = {Varsha Goyal},
  journal      = {Minnesota Journal of Business Law and Entrepreneurship},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.52783/mjble.120},
}

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The ESG–Financial Performance Relationship: An Investigation of India’s Cement Industry

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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