Corporate Governance, ESG Integration, and Financial Performance: Evidence from Indian Firms
DOI:
https://doi.org/10.66348/brr.26.v1.n1.a10Keywords:
Corporate Governance Mechanisms; ESG Integration; Corporate Reputation; Governance Quality; Financial Performance; Emerging MarketsAbstract
This study examines the interplay between corporate governance mechanisms, environmental, social, and governance (ESG) integration, corporate reputation, and financial performance in the Indian context. Drawing on survey data from 535 respondents across multiple industries and employing Partial Least Squares Structural Equation Modeling (PLS-SEM), the study investigates both direct and indirect relationships among these constructs. The findings reveal that effective corporate governance positively influences ESG integration, corporate reputation, and financial performance. ESG integration mediates the relationship between governance mechanisms and financial performance, while corporate reputation further strengthens this link. Additionally, governance quality acts as a significant moderator, enhancing the positive effects of governance mechanisms on ESG integration and the subsequent impact on firm performance. The study contributes theoretically by integrating governance effectiveness, ESG adoption, and governance quality into a single model, offering a comprehensive understanding of their collective influence on financial outcomes. Practically, the results highlight the importance of robust governance structures and ESG strategies in fostering sustainable growth and reputational advantages. The study underscores that ESG initiatives are not merely compliance measures but strategic tools that convert governance practices into tangible financial and reputational value. This research provides actionable insights for managers, policymakers, and investors seeking to enhance firm performance through sustainable corporate practices in emerging markets.
Received: 2026-03-26 | Revised: 2026-05-12 | Accepted: 2026-05-19 | Published: 2026-05-20
Declarations
Ethics and Guidelines: The study was conducted in accordance with the Declaration of Helsinki, and ethically approved by the Institutional Review Board of Universiti Malaysia Perlis (Approval Number: 5478-25-372) on [Date: 22-06-2025]. The ethical approval specifically covers the research procedures and data collection activities conducted for this study.
Consent to participate: Written informed consent was obtained from all participants prior to data collection. Consent was obtained using a standardized written form, signed by each participant before participation in the survey.
Consent to publish: The authors have provided consent to publish.
Competing interests: The authors declare no competing interests.
Data availability statement: Data will be made available on reasonable request from the corresponding author.
Funding: This research received no external funding.
Clinical Trial Number: Not Applicable.
Declaration of using generative AI: During the preparation of this work the author(s) used ChatGPT in order to correct the grammatical errors. After using this tool/service, the author(s) reviewed and edited the content as needed and take full responsibility for the content of the published article.
Author Contributions: Conceptualization, M.A.K.A., M.A.I., and D.M.; methodology, M.A.K.A., M.A.I., and D.M.; writing—original draft preparation, M.A.K.A., M.A.I., and D.M.; writing—review and editing, M.A.K.A., M.A.I., and D.M. All authors have read and agreed to the published version of the manuscript.
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Data will be made available on reasonable request from the corresponding author.
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Copyright (c) 2026 Md Abul Kalam Azad, Md Aminul Islam, Devika Mulchandani (Author)
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