Exploring the Nexus Between Fundamental Strength and Market Value in Energy Companies: Evidence From Environmental, Social, and Corporate Governance Perspective in Poland
Sustainable development is an important element of the interests of modern economics. In order to function on the market and develop, companies must adhere to the principles of sustainable development. In this context, the interest of companies in the implementation and application of ESG strategies...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2022-04-01
|
| Series: | Frontiers in Energy Research |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenrg.2022.910921/full |
| _version_ | 1818015513981222912 |
|---|---|
| author | Malgorzata Tarczynska-Luniewska Kinga Flaga-Gieruszynska Magda Ankiewicz |
| author_facet | Malgorzata Tarczynska-Luniewska Kinga Flaga-Gieruszynska Magda Ankiewicz |
| author_sort | Malgorzata Tarczynska-Luniewska |
| collection | DOAJ |
| description | Sustainable development is an important element of the interests of modern economics. In order to function on the market and develop, companies must adhere to the principles of sustainable development. In this context, the interest of companies in the implementation and application of ESG strategies is growing. In the long-term perspective, the use of this type of strategy is to generate an increase in the company’s value. This value is of interest to the company’s stakeholders, who may use the information about the company’s value, e.g., in terms of its management or investment. The aim of the article is to examine the relationship between the company’s value and its fundamental strength. The analysis covers companies from the energy sector (listed on the Warsaw Stock Exchange) that declare the use of ESG practices. The time range of the research covers the years 2013–2020. For the purpose of the study, selected statistical measures and the Fundamental Power Index (FPI) were used. This indicator synthetically evaluates all areas of the company’s operations. The results of the research show that the value of the company is not influenced by its fundamental strength. Therefore, the investors do not reduce the company’s value in the light of information on its fundamental strength. In addition, companies vary in terms of fundamental strength measured by FPI. |
| first_indexed | 2024-04-14T06:58:05Z |
| format | Article |
| id | doaj.art-78abfa9af0364a31a50b66a5029d4688 |
| institution | Directory Open Access Journal |
| issn | 2296-598X |
| language | English |
| last_indexed | 2024-04-14T06:58:05Z |
| publishDate | 2022-04-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Energy Research |
| spelling | doaj.art-78abfa9af0364a31a50b66a5029d46882022-12-22T02:06:49ZengFrontiers Media S.A.Frontiers in Energy Research2296-598X2022-04-011010.3389/fenrg.2022.910921910921Exploring the Nexus Between Fundamental Strength and Market Value in Energy Companies: Evidence From Environmental, Social, and Corporate Governance Perspective in PolandMalgorzata Tarczynska-Luniewska0Kinga Flaga-Gieruszynska1Magda Ankiewicz2Institute of Economy and Finance, University of Szczecin, Szczecin, PolandInstitute of Law, University of Szczecin, Szczecin, PolandDoctoral School, University of Szczecin, Szczecin, PolandSustainable development is an important element of the interests of modern economics. In order to function on the market and develop, companies must adhere to the principles of sustainable development. In this context, the interest of companies in the implementation and application of ESG strategies is growing. In the long-term perspective, the use of this type of strategy is to generate an increase in the company’s value. This value is of interest to the company’s stakeholders, who may use the information about the company’s value, e.g., in terms of its management or investment. The aim of the article is to examine the relationship between the company’s value and its fundamental strength. The analysis covers companies from the energy sector (listed on the Warsaw Stock Exchange) that declare the use of ESG practices. The time range of the research covers the years 2013–2020. For the purpose of the study, selected statistical measures and the Fundamental Power Index (FPI) were used. This indicator synthetically evaluates all areas of the company’s operations. The results of the research show that the value of the company is not influenced by its fundamental strength. Therefore, the investors do not reduce the company’s value in the light of information on its fundamental strength. In addition, companies vary in terms of fundamental strength measured by FPI.https://www.frontiersin.org/articles/10.3389/fenrg.2022.910921/fullfundamental strengthcompany’s valueESG factorslegal aspects of ESGenergy transition |
| spellingShingle | Malgorzata Tarczynska-Luniewska Kinga Flaga-Gieruszynska Magda Ankiewicz Exploring the Nexus Between Fundamental Strength and Market Value in Energy Companies: Evidence From Environmental, Social, and Corporate Governance Perspective in Poland Frontiers in Energy Research fundamental strength company’s value ESG factors legal aspects of ESG energy transition |
| title | Exploring the Nexus Between Fundamental Strength and Market Value in Energy Companies: Evidence From Environmental, Social, and Corporate Governance Perspective in Poland |
| title_full | Exploring the Nexus Between Fundamental Strength and Market Value in Energy Companies: Evidence From Environmental, Social, and Corporate Governance Perspective in Poland |
| title_fullStr | Exploring the Nexus Between Fundamental Strength and Market Value in Energy Companies: Evidence From Environmental, Social, and Corporate Governance Perspective in Poland |
| title_full_unstemmed | Exploring the Nexus Between Fundamental Strength and Market Value in Energy Companies: Evidence From Environmental, Social, and Corporate Governance Perspective in Poland |
| title_short | Exploring the Nexus Between Fundamental Strength and Market Value in Energy Companies: Evidence From Environmental, Social, and Corporate Governance Perspective in Poland |
| title_sort | exploring the nexus between fundamental strength and market value in energy companies evidence from environmental social and corporate governance perspective in poland |
| topic | fundamental strength company’s value ESG factors legal aspects of ESG energy transition |
| url | https://www.frontiersin.org/articles/10.3389/fenrg.2022.910921/full |
| work_keys_str_mv | AT malgorzatatarczynskaluniewska exploringthenexusbetweenfundamentalstrengthandmarketvalueinenergycompaniesevidencefromenvironmentalsocialandcorporategovernanceperspectiveinpoland AT kingaflagagieruszynska exploringthenexusbetweenfundamentalstrengthandmarketvalueinenergycompaniesevidencefromenvironmentalsocialandcorporategovernanceperspectiveinpoland AT magdaankiewicz exploringthenexusbetweenfundamentalstrengthandmarketvalueinenergycompaniesevidencefromenvironmentalsocialandcorporategovernanceperspectiveinpoland |