The Relationship of the Corporate Sustainability Index (ISE) with the Financial Performance of Companies Listed on B3

Abstract

This study aims to investigate the relationship between the ISE (Corporate Sustainability Index) and the financial performance of companies listed on B3. The method used was panel regression, where we used 2,605 observations of financial economic indicators in the period between 2011 and 2021. The respectively result found was: a positive relationship with ROE, a positive relationship with ROE and a positive and significant relationship with the ROA, ROE and EV/EBITIDA indicators, respectively. The result of this study should allow stakeholders to consider these findings when making decisions, whether for investments or managerial in kind.  From a theoretical point of view, this study provides an investigation of more recent data not yet widely covered by previous research, considering a longer period (11 years) of analyzed data and considering financial indicators, in addition to market indicators.