Is ESG a New Anecdote to Investment Decisions for Indian Investors: An ARDL Approach?


  • Ashutosh Yadav Department of Humanities and Social Sciences, National Institute of Technology Patna, India
  • Deepak Kumar Behera Department of Humanities and Social Sciences, National Institute of Technology Patna, India


ESG score , stock performance, ARDL approach


The purpose of this study is to evaluate the linkage between Environmental, Social, and Governance (ESG) ratings and the stock performance of the top 15 Indian companies with low-ESG-risk as well as the top 15 Indian companies with   high-ESG-risk. The existing literature on whether ESG leads to better stock performance is mixed. There are studies that exhibit a positive or negative relationship between ESG and stock performance, while others deny the same. However, the findings of the present study state that a better ESG-compliant company impacts its stock performance positively. The Autoregressive Distributed Lag (ARDL) co-integration approach is used in the study to determine the relationship between ESG and stock performance in Indian companies. The primary outcome of the current study is that the ESG factor should be considered simultaneously with other factors when deciding on investment strategies. Additionally, an ESG-compliant company can further play its part in tackling the climate change issue.


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How to Cite

Ashutosh Yadav, & Deepak Kumar Behera. (2024). Is ESG a New Anecdote to Investment Decisions for Indian Investors: An ARDL Approach?. Thailand and The World Economy, 42(2), 64–77. Retrieved from