ESG Ratings and Financial Performance of Energy Companies in Asia-Pacific

This study investigates the impact of the ESG performance effect on financial performance of Return of Assets (ROA) with liquidity and leverage as mediator. The primary objective is to empirically examine the relationship during the occurrence of the pandemic of COVID-19. The authors employ difference-in-difference (DID) method to comparing the treatment group (high ESG rated companies) with the control group (low ESG rated companies) before and after the COVID-19 event. Data samples are energy companies from 6 countries within Asia-Pasific Region: Australia, China, India, Indonesia, Japan, and Singapore.