ASSOCIATION OF ESG FACTORS' DISCLOSURE WITH THE VALUE OF EUROPEAN COMPANIES FROM ENERGY INDUSTRY

This study investigates the association between environmental, social and governance (ESG) factors' disclosure and the value of European companies from energy industry. The sample consists of 55 companies from different categories within energy industry (Coal, Oil and Gas, Oil and Gas Related Equipment and Services, and Renewable Energy) and is based on all European companies from energy sector. To investigate the association between the combined and individual ESG factors disclosure and firm's value, two linear regression models have been designed. The research outputs indicate a positive association between ESG factors disclosure and firm's value for the European companies within energy industry (Oil and Gas Related Equipment and Services, and Renewable Energy subcategory) when firm's value is measured using market value. Nonetheless, debates need to be considered, as the impact of ESG factors, either combined or individual, is found to be both significant and negative for the European companies from Oil & Gas subcategory.