HOW ESG FACTORS INFLUENCE COMPANY VALUE
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Abstract
In recent years, Environmental, Social, and Governance (ESG) factors have become an essential element in the evaluation of company value. Investors, regulators, and stakeholders increasingly consider not only financial indicators but also non-financial aspects related to sustainability, social responsibility, and corporate governance. This article examines how ESG factors influence company value, both directly and indirectly. The study is structured according to the IMRAD framework and analyzes existing problems in ESG integration, possible solutions, and future proposals for improving ESG-based valuation. The findings show that strong ESG performance can reduce risks, lower the cost of capital, enhance reputation, and improve long-term financial performance, ultimately increasing company value.
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References
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