Why ROE, ROA, and Tobin’s Q in Regressions Aren’t Good Measures of Corporate Financial Performance for ESG Criteria

It is demonstrated theoretically why ROE, ROA, and Tobin’s Q aren’t good measures of corporate financial performance for ESG criteria. Essentially due to E, S, and G criteria affecting productivity and debt costs, this causes measurement error in the dependent variables of regressing ROE, ROA, and Tobin’s Q on E, S, and G criteria where the measurement error is correlated with the independent variables. This results in biased estimators and inflated standard errors

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Year of publication:	[2021]
Authors:	Gregory, Richard Paul
Publisher:	[S.l.] : SSRN
Subject:	Theorie \| Theory \| Unternehmenserfolg \| Firm performance \| Corporate Social Responsibility \| Corporate social responsibility \| Regressionsanalyse \| Regression analysis \| Nachhaltige Kapitalanlage \| Sustainable investment \| Performance-Messung \| Performance measurement \| Tobins Q \| Tobin's Q

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Extent:	1 Online-Ressource (19 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 29, 2021 erstellt
Other identifiers:	10.2139/ssrn.3775789 [DOI]
Classification:	G00 - Financial Economics. General
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013239689