Browsing by Author "Dr. Samya Tahir Lecturer"

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    Impact of ESG on Firm’s Financial Performance: Evidence from Pakistan Oil and Gas Exploration
    (Library Information Services, COMSATS University Islamabad, Lahore Campus, 2025) Fatima Saleem; CIIT/SP24-RBA-003/LHR; Dr. Samya Tahir Lecturer; LHR TP 10088
    The article under research will explore the influence of Environmental, Social and Governance (ESG) practices on financial performance of oil and gas exploration companies in Pakistan, which is highly sensitive industry in terms of environmental conditions and regulations. Although there is increasing evidence in the rest of the world that ESG increases profitability and risk mitigates, there is a dearth of empirical studies in the case of Pakistan. To fill this gap, four large PSX-traded exploration firms Mari Petroleum, OGDCL, POL, and PPL were analyzed between 2022 and 2024. The analysis used quantitative descriptive correlation design and the only secondary data sources included in the analysis were annual reports, sustainability disclosures, governance statements, and 2023 ESG Disclosure Guidelines of SECP. The measurement of ESG performance was through a standardized scoring rubric (1-5) measured on the basis of environmental, social and governance indicators whereas financial performance was determined by Earnings Per Share (EPS), Return on Assets (ROA), Return on Equity (ROE) and Net Profit Margin (NPM). The SPSS was used to develop 12 observations (4 companies train x 3 years) and descriptive statistics, correlation analysis, regression models and assumptions testing were applied. Findings demonstrated significant improvement of the ESG disclosures in the firms in 2024 but there was weak positive but statistically insignificant relationship between ESG and all the four financial indicators and all the hypotheses were rejected. Such results indicate that the benefits of ESG in the exploration industry in Pakistan might not be evident in the short run as financial performance is largely affected by external circumstances, i.e. oil prices in the world economy, costs of doing business and changes in regulations. It is concluded that despite the rise of ESG usage and its importance in the long-term sustainability, legitimacy, and trust by stakeholders, the quantitative effect of ESG remains not prominent in the three-year horizon, which requires a deeper implementation of ESG, better quality of reporting, and more extended assessment of its effects in the future studies.