Graduation Year
2025
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Patrick Van Horn
Reader 2
Nayana Bose
Terms of Use & License Information
Abstract
This study evaluates the impact of firm size on the relationship between ESG performance and corporate financial performance of firms within the technology industry. Specifically, this study uses OLS analysis to assess the relationship between ESG, measured using Morningstar Sustainalytics ESG risk scores, and return on assets, using firm market cap as a proxy for firm size. Data was compiled into an original dataset consisting of 254 firms. Results were significant, finding that increasing ESG practices in small and medium firms increases ROA. These findings highlight the economic value of social responsibility efforts in technology firms, particularly in small and medium sized companies. Implications of these results, as well as limitations and future directions are discussed further in this paper.
Recommended Citation
Hariharan, Riya, "Where Purpose Meets Profit: The Impact of Firm Size on the Relationship Between ESG Performance and Corporate Financial Performance on Firms in the Technology Industry" (2025). Scripps Senior Theses. 2470.
https://scholarship.claremont.edu/scripps_theses/2470
