The purpose of the study is to investigate the impact of country-level ESG on firms’ performance from Mauritian equity markets.
Based on a sample of 30 publicly listed companies from the Stock Exchange of Mauritius from 2015 to 2022, the study employed a fixed and random effect analysis for its investigation.
The results showed that, in contrast to the reported literature, the improvement in the country ESG climate does not necessarily impact on the firm performance.
The implication of the study is that sustainable business practices might take longer to provide sustainable financial gains for companies. The study recommends that more policy measures from regulators and the senior management to facilitate the transition process in integrating ESG policies in maximizing the long-term firm value and wealth.
This is one of the first studies applying the concept of country-level Environmental, Social and Governance as a method of investigation on firm performance in Mauritius.
