earticle

영어

Our study examined the effect of the ESG rating provided by KCGS on financial performance. The samples included in this study are 429 manufacturing companies listed on the Korea Exchange for which KCGS rated ESG scores, and the period is from 2017 to 2021. The empirical result is shown that the ESG integration rating, environment, social, and governance rating have a significant positive effect on ROA as the accounting-based variable, and that the ESG integration rating and social rating have a significant positive effect on Tobin’s Q the market-based variable. The implication of this study is that it has provided evidence on the impact of ESG on performance academically, and in practice it informs that managers need more attention to ESG as it is an operational activity that can have a positive impact on financial performance.