Keywords
ESG; Finance; Financial Performance; Environmental; Social; Corporate Governance
Abstract
This study examines the relationship between Environmental, Social, and Corporate Governance (ESG) activity and financial performance in the context of firms operating in the Aerospace & Defense industry. As societal pressure increases for companies to adopt ESG and related corporate sustainability practices, it is crucial to understand the repercussions of such adoptions. As the Aerospace & Defense industry continues to grow and capitalize on post-COVID travel booms, military modernization efforts, and increased demand for advanced aerospace technology, it is essential to understand the consequences of ESG implementation. By examining data from 2012 – 2023, this study produced results regarding the relationship between ESG activity and financial performance. The results indicated a positive relationship between ESG activity and financial performance. The results also show that the relationship between ESG and financial performance has grown stronger over time consistent with the fact that proxies for ESG activity such as ESG Score and ESG Disclosure have increased in recent years.
Thesis Completion Year
2024
Thesis Completion Semester
Summer
Thesis Chair
Whyte, Ann Marie
College
College of Business
Department
Finance
Thesis Discipline
Finance
Language
English
Access Status
Open Access
Length of Campus Access
None
Campus Location
Orlando (Main) Campus
STARS Citation
Trimble, Cooper, "The Effects of ESG on the Financial Performance of Aerospace & Defense Companies" (2024). Honors Undergraduate Theses. 144.
https://stars.library.ucf.edu/hut2024/144
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