Study of the Influence of Nonfinancial Indicators of a Company on Financial Indicators

Abstract

Recently, ESG indicators, which indicate the status of the environment (E), social (S), and governance (G), as well as financial indicators, are becoming more important in corporate management. In order to quantitatively understand these ESG indicators, this study examined the impact of ESG indicators on financial indicators from a statistical and machine learning perspective. Time series models of ESG and financial indicators were created for over 100 listed companies, and the companies were classified by clustering the model parameters. This classification revealed that the impact of ESG indicators on financial indicators is not necessarily similar across industries, but shows various aspects.