A Study of the Relationship Between ESG Reporting and Corporate Value: An Analysis of selected Indian Companies

Abstract

Environmental, Social, and Governance (ESG) reporting has become an increasingly important component of corporate accountability, investment analysis, and sustainability-oriented management. In India, the introduction of Business Responsibility and Sustainability Reporting (BRSR) by the Securities and Exchange Board of India (SEBI) has strengthened the institutional framework for corporate sustainability disclosure. Nevertheless, the extent to which ESG reporting contributes to corporate value remains an empirical question, particularly in emerging markets where regulatory requirements, reporting capabilities, industry characteristics, and investor expectations differ across companies.

This study proposes to examine the relationship between ESG reporting and corporate value among Indian listed companies through a systematic literature review covering 2020–2026 and a longitudinal panel-data analysis. The literature review synthesises theoretical arguments, Indian empirical findings, regulatory developments, and methodological limitations. The empirical study proposes a sample of up to 500 listed companies over the financial years 2019–20 to 2024–25, subject to data availability and eligibility criteria. ESG reporting will be measured using a researcher-developed, 60-item disclosure index covering environmental, social, and governance dimensions. Corporate value will be measured primarily through Tobin’s Q, with the market-to-book ratio as an alternative outcome. Firm size, leverage, profitability, firm age, industry, and year effects will be incorporated into the econometric framework.

The study will employ descriptive statistics, correlation analysis, fixed-effects panel regression, dimension-specific models, robustness checks, and additional analyses addressing reverse causality and regulatory changes. The reviewed evidence suggests that the ESG–corporate value relationship is not uniformly positive: some studies identify positive valuation associations, whereas others report negative or industry-dependent effects. The proposed research will help clarify these relationships in the Indian institutional context and offer implications for corporate managers, investors, regulators, and sustainability researchers.