Evaluating the impact of ESG on firms' performance in financial sector : insights, challenges and path forward
Authors
Dmonte, Grace
Issue Date
2025.17.12
Degree
Master of Business Administration
Publisher
Dublin Business School
Rights holder
Rights
Open Access
Abstract
This dissertation examines how adoption of Environmental, Social and Governance (ESG) can influence the financial and operational performance of small and medium-sized enterprises (SMEs) in the financial sectors of India and Ireland. Applying a pragmatic ideology and an explanatory sequential mixed-design method, the research used both quantitative analysis (as per SPSS) and qualitative analysis (as per NVIVO), in terms of thematic analysis. The results indicated that ESG adoption has a significant positive influence on brand reputation and operations effectiveness, which proved to be powerful determinants of financial success. However, the demand of the investors did not exhibit a statistically significant effect, indicating the difficulty that SMEs find in aligning to the demands of investors as a resource-constrained situation. The quantitative findings were supported by qualitative themes that confirmed the stakeholder power, difficulties in reporting and cultural obstacles and outlined the methods to be used to improve the situation. The research makes a theoretical contribution by generalizing Stakeholder Theory, RBV and Legitimacy Theory to the setting of SMEs and provides practical, policy and theoretical recommendations that can be used to drive healthy adoption of sustainable finance.