Ottonello, GiorgioCoronetti, Alessandro2026-01-302026-01-302025-06-242025-05-21http://hdl.handle.net/10362/199874This thesis investigates the relationship between Environmental, Social, and Governance (ESG) performance and corporate financial outcomes using a nine-year panel of 579 publicly listed firms from developed markets. Fixed effects regressions on first-differenced data reveal that ESG improvements are significantly associated with higher profitability (ROE, ROA), while effects on valuation, firm size, and market risk are limited or context-dependent. Carbon intensity negatively impacts firm value, and ESG controversies undermine performance, though some firms benefit reputationally despite unresolved controversies. These findings underscore the materiality and complexity of ESG-finance linkages, offering insights for investors and policymakers seeking to integrate sustainability into decision-making.engESG performanceCorporate Financial PerformanceCorporate financial performanceCorporate financial performancePanel data regressionCarbon intensityESG controversiesSustainable financemaster thesis204127807