ESG, Capital Structure, and Financial Performance of brazilian listed companies

ESG, Capital Structure, and Financial Performance of brazilian listed companies

• Autor
• João Guilherme de Santana Brandão
• Co-autores
• Joséte Florêncio dos Santos , Camila Bezerra Correia Neves , Clarissa Cabral Leite , Móisés Araújo Almeida
• Resumo

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  This study analyzed whether ESG practices moderate the relationship between capital structure and financial performance in Brazilian companies listed on B3 (2010–2024). To address potential endogeneity, two-stage least squares (2SLS) was applied to panel data, using sector-average ESG scores and their pillars as instruments. Performance was proxied by ROA and Tobin's Q, capital structure by leverage, and ESG by the LSEG Combined Score, which incorporates controversies. The results indicated that ESG had no significant effect on financial performance as an aggregate measure, nor did it moderate the leverage-performance relationship; however, the individual pillars positively influenced performance. This evidence suggests that the economic impacts of ESG remain incipient in the Brazilian context, marked by voluntary disclosures and sectoral heterogeneity. The study contributes by framing ESG as an informational factor in capital structure decisions, reinforcing the importance of robust econometric methods and pointing to avenues for future research.

   

• Palavras-chave
• ESG. Financial performance. Capital structure. Brazil.
• Modalidade
• Comunicação oral
• Área Temática
• Finanças Corporativas e Bancárias

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