Sustainability Index and Corporate Performance: A Study of the FTSE4Good IBEX

Mónica González Morales – Department of Economic and Financial Studies, Faculty of Social Sciences and Law of Miguel Hernández University of Elche, Avda, De la Universidad S/N, 03202, Elche, Alicante, Spain

José Antonio Cavero Rubio – Department of Economic and Financial Studies, Faculty of Social Sciences and Law of Miguel Hernández University of Elche, Avda, De la Universidad S/N, 03202, Elche, Alicante, Spain

Araceli Martínez Amorós – Department of Economic and Financial Studies, Faculty of Social Sciences and Law of Miguel Hernández University of Elche, Avda, De la Universidad S/N, 03202, Elche, Alicante, Spain

Abstract: In response to the evolution of global paradigms, contemporary companies have moved beyond the exclusive pursuit of traditional finan­cial metrics, embracing environmental, social, and governance (ESG) consid­erations as fundamental components of their strategic agendas. This study delves into ESG’s influence on financial performance among Spanish compa­nies listed on the FTSE4Good IBEX versus the IBEX 35 from 2015 to 2022. Sur­prisingly, sustainability index inclusion doesn’t guarantee superior financial outcomes; IBEX 35 firms showcase stronger liquidity, solvency, return on as­sets, and investment compared to FTSE4Good IBEX counterparts. Return on equity and financial leverage, however, display no significant divergence be­tween the groups, adding intricacy to the ESG-finance correlation. The find­ings emphasize addressing financial hurdles for ESG-centric entities and chal­lenge the FTSE4Good IBEX’s comprehensive reflection of ESG practices. Con­tinuous exploration of factors shaping the relationship between ESG and fi­nancial results remains imperative for comprehensive insights.

LIMEN Conference

9th International Scientific-Business Conference – LIMEN 2023 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – SELECTED PAPERS, Hybrid (Graz University of Technology, Graz, Austria), December 7, 2023

LIMEN Selected papers published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia

LIMEN Conference 2023 Selected papers: ISBN 978-86-80194-79-0, ISSN 2683-6149, DOI: https://doi.org/10.31410/LIMEN.S.P.2023

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

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