Influence of ESG Disclosure on Financial Performance and Market Valuation: Evidence from the Indian Automobile Sector

M. Jessica, Dr. Patcha Bhujanga Rao

Abstract: This study explores how Environmental, Social, and Governance (ESG) disclosure influences the financial and market performance of India's leading automobile companies-Tata Motors, Mahindra & Mahindra (M&M), and Hyundai Motor India Ltd.-over FY 2019-20 to FY 2023-24. Drawing on secondary data from Centre for Monitoring Indian Economy Pvt. Ltd. (CMIE) Prowess, BRSR reports, and company annual statements, a quantitative, ex-post-facto design was employed. Descriptive, correlation, and panel-regression analyses were used to test the impact of ESG practices on Return on Assets (ROA), Return on Equity (ROE), and Tobin?s Q. Results show a strong positive relationship between ESG disclosure and financial outcomes p < 0.05), confirming that sustainable practices enhance profitability and valuation. The findings underline the strategic importance of the SEBI Business Responsibility and Sustainability Reporting (BRSR) framework and offer managerial insights into aligning ESG initiatives with financial objectives.

Keywords: ESG Disclosure, Financial Performance, Tobin's Q, Indian Automobile Sector, BRSR, Sustainability Reporting

How to Cite?: M. Jessica, Dr. Patcha Bhujanga Rao, "Influence of ESG Disclosure on Financial Performance and Market Valuation: Evidence from the Indian Automobile Sector", Volume 14 Issue 10, October 2025, International Journal of Science and Research (IJSR), Pages: 1407-1411, https://www.ijsr.net/getabstract.php?paperid=SR251027002746, DOI: https://dx.doi.org/10.21275/SR251027002746