A0897
Title: Analyzing the interplay between ESG dimensions and corporate performance using a multiplex network approach
Authors: Saverio Storani - Sapienza University of Rome (Italy) [presenting]
Abstract: The primary objective is to analyze corporate sustainability policies' interaction and reciprocal influence, encompassing environmental, social, and governance (ESG) dimensions over time and their impact on corporate performance. Utilizing a high-quality historical dataset, it is examined how changes in one ESG dimension influence the other two and how these effects are reflected in overall corporate performance. A multiplex network approach is adopted, where each layer corresponds to one of the ESG dimensions. The networks within each layer are constructed based on the principle of similarity among firms, allowing us to analyze correlations in corporate performance within each stratum. The temporal interactions between ESG dimensions are also studied to observe potential causality and general spill-over effects, considering the entire multiplex network. This aims to identify the dynamics linking ESG scores to the performance of the companies under investigation. Furthermore, centrality analysis and classifying firms into subgroups based on their ESG scores explore how more effective sustainability policies can positively influence corporate performance. Finally, strategic recommendations are formulated to improve sustainability policies and optimize corporate performance.
