Motivation: The growing importance of ESG in the international economy makes the analysed issues extremely interesting. More and more studies show the growing role of ESG performance on company financial and market results as well as analyse the impact of the COVID-19 pandemic on the financial market. The study of rate of return and the relationship between the largest company companies in European Union Member States is of key importance considering the investment portfolio risk.Aim: The main aim of the article is impact assessment of ESG performance of the firm (proxied by ESG scoring by Refinitiv) on the rate of return of commodity sector companies listed on financial markets of European Union Member States. The second goal of the paper is to determine the impact of the COVID-19 pandemic on the rate of return of the analysed companies. The third and final goal is to assess the impact of sector leader status on the rate of return of these companies (i.e. KGHM, PKN Orlen, Royal Dutch Shell and Rio Tinto).Results: ESG disclosure by the surveyed companies and ESG scoring had negative impact on the rate of return, while E, S and G scorings did not affect rate of return at all. Sector leaders were less negatively impacted by the COVID-19 economic crisis than the rest of the sector, however sector leadership status was not statistically significant. COVID-19 pandemic positively influenced the rate of return of analysed companies. In case of commodities stock companies, the economic crisis caused by the pandemic brought about higher levels of uncertainty in the financial markets.

Background: The basis for the research was the assessment of the financial data results of several companies listed on the Warsaw Stock Exchange, directly collected from the EMIS database as well as said companies’ websites, during the horizon from 2008 until 2017. Research purpose: The main objective of the paper was to use the 7-factor DuPont model to calculate the cross-sectoral detection of the fundamental determinants of Return on Equity (RoE) of several companies listed on the Warsaw Stock Exchange operating in the industrial sector, the consumer goods sector, and the trade and services sector, as of the 8th of December 2018. The re­searchers hypothesised that there would be cross-sectional differentiation of RoE elements, as each of them are elements of the 7-factor Du Point model. Methods: The paper analysed selected descriptive statistics of every component of the 7-factor Du­Pont model, used the version of the Pearson correlation coefficient that closely follows the t-distribu­tion in order to examined correlations between individual components of the DuPont model and return on equity, and constructed an Ordinary Least Squared (OLS) model assessing the impact of the seven components of the DuPont model in the period t on the surveyed companies’ RoE in the period t. Conclusions: The hypothesis was that cross-sectoral difference of RoE elements would be found according to the DuPont model. However, the evidence disproved the hypothesis, suggesting that the Capital Multiplier was the leading factor shaping the level of RoE in the companies, and with the Capital Multiplier also expressing a negative correlation of moderate strength to companies’ RoE. Przedmiot badań: Podstawę przeprowadzonych badań stanowiły wyniki finansowe badanych spółek, które zostały bezpośrednio zaczerpnięte z bazy EMIS i stron internetowych poszczegól­nych podmiotów oraz obejmowały dziesięcioletni horyzont czasowy, tj. od 2008 do 2017 r. Cel badawczy: Zasadniczą intencję opracowania stanowiła międzysektorowa detekcja czynni­ków warunkujących wielkość wskaźnika rentowności kapitału własnego w oparciu o 7-czynniko­wy model DuPont spółek notowanych na GPW w Warszawie oraz wchodzących w skład sektora przemysłu, dóbr konsumpcyjnych oraz handlowo-usługowego wedle stanu na 8.12.2018 r. Ponad­to, ustanowiono hipotezę konstytuującą międzysektorowe zróżnicowanie determinant 70-czynni­kowego modelu DuPont. Metoda badawcza: W badaniach wykorzystano analizę wybranych statystyk opisowych po­szczególnych składników 7-elementowego modelu DuPont, zbadano korelacje między poszcze­gólnymi składowymi modelu DuPont a współczynnikami rentowności kapitału własnego, przy użyciu współczynnika korelacji Pearsona wraz z oceną istotności tego miernika za pomocą staty­styki, a także skonstruowano jednorównaniowy model regresji liniowej. Wyniki: Zrealizowane badania podważyły podstawioną hipotezę badawczą, która zakładała mię­dzysektorowe zróżnicowanie determinant RoE stanowiących elementy 7-czynnikowego modelu DuPont. Jako wiodący czynnik kształtujący wysokość rentowności kapitału własnego w bada­nych spółkach wskazano mnożnik kapitałowy, który wykazywał negatywną korelację o umiarko­wanej sile względem wskaźnika rentowności kapitału własnego (RoE).

Theoretical background: The paper draws on two relevant theories – stakeholder theory and institutional theory. Non-financial information on how the operations of a company impact its surroundings in environmental, social, and governance (ESG) areas is more and more important in terms of firm value and according to stakeholders theory positive relationship between these two is expected. However, although the research on the relationship between company ESG performance (ESGP) and firm value origins since the beginning of the 1970s, the authors document no conclusive results. Above is theorised to be conditioned by the role of institutions as they reflect a rational purpose that guides behaviours of entities toward certain ends. Purpose of the article: Two aims were set in the study. First, to examine the impact of the sustainability level of the European Union (EU) Member States in the years 2012–2021 on ESGP of non-financial sectors stock companies. The second aim of the paper was to assess the country sustainability level as the factor differentiating the nature and the strength of ESGP impact on firm value of non-financial sectors stock companies listed on the regulated financial markets of EU Member States in the years 2012–2021. Research methods: For the purpose of achieving set goals the study utilised two econometric models. Models were estimated using Panel Least Squares (PLS) regression with Fixed Effects (FE). Tobin’s Q proxied firm value, ESG scoring from Refinitiv proxied company ESGP. Global Sustainability Competitiveness Index (GSCI) from Solability was used as the measure of country sustainability. Company financial and ESG data was sourced from Refinitiv EIKON, while country data was accessed from Solability, Eurostat, Human Development Index and Transparency International. Main findings: Countries of both low and high sustainability level impact company ESGP positively. However, almost twice as big influence of highly sustainable countries was noted for low ones. Research results documented ESG to impact firm value positively. An increase in ESG score of a company from the country with low sustainability level decreased its firm value and the opposite was noted in case of companies of countries with high sustainability level. Investors tend to value positively companies with good ESGP and strong nation-level institutions in the field of sustainability and to punish (i.e. with a lower valuation) firms from countries of poor sustainability, even if these entities reached unexceptionally good ESGP.

In response to growing environmental concerns, hydrogen production has emerged as a critical element in the transition to a sustainable global economy. We evaluate the impact of hydrogen production on both the financial performance and market value of energy sector companies, using balanced panel data from 288 European-listed firms over the period of 2018 to 2022. The findings reveal a paradox. While hydrogen production imposes significant financial constraints, it is positively recognized by market participants. Despite short-term financial challenges, companies engaged in hydrogen production experience higher market value, as investors view these activities as a long-term growth opportunity aligned with global sustainability goals. We contribute to the literature by offering empirical evidence on the financial outcomes and market valuation of hydrogen engagement, distinguishing between production and storage activities, and further categorizing production into green, blue, and gray hydrogen. By examining these nuances, we highlight the complex relationship between financial market results. While hydrogen production may negatively impact short-term financial performance, its potential for long-term value creation, driven by decarbonization efforts and sustainability targets, makes it attractive to investors. Ultimately, this study provides valuable insights into how hydrogen engagement shapes corporate strategies within the evolving European energy landscape.

The study aims to assess the impact of the ESG (Environmental, Social, and Governance) score of the company on its market value. The research focuses on stock companies of financial markets of European Union (EU) Member States for the years 2011–2021. The ESG discourse on the EU regulated markets was examined across nine economic sectors, in line with LSEG terminology. To test the relationship between ESG performance and firm value, the modified Ohlson Valuation Model (OVM) was utilized. Tobin’s Q was considered as the proxy of firm value, RoA as the proxy of the company’s financial performance, and ESG scoring as the proxy of ESG information that is relevant in assessing the market value. Seven control variables for firm characteristics were also included. To account for potential institutional bias, grounded in legitimacy and institutional theories, we employed two dummy variables – COUNTRY and SECTOR. The findings confirmed our research hypothesis that there is a statistically significant relationship between ESG score and firm value. In line with stakeholder theory, the results support the notion that companies with high ESG scores achieve higher firm value than those with low ESG scores, thus shedding more light on the growing importance of ESG factors for the performance of European companies. The study offers new insights into relationship between ESG performance and firm market value, examined from both from country and sectoral perspectives.