Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

Subject Categories

Business Administration, Management, and Operations | Corporate Finance


Ramon V. Del Rosario College of Business


Financial Management Department

Thesis Advisor

Dioscoro P. Baylon Jr.

Defense Panel Chair

Benedict Bismark

Defense Panel Member

Rene B. Betita
John Paul S. Tanyag


This study explored the possible outcome of ESG activities towards the performance of financial companies before, and during times of crisis, to which the financial crisis brought about by the COVID-19 pandemic was focused upon in the study. Financial performance was proxied with Return on Assets, and Return on Equity, while ESG activities were measured through an independent rating agency. The relationship of Return on Assets, and Return on Equity with ESG, dummy variable COVID, interaction of ESG and the dummy variable COVID, company size (natural logarithm of total assets), leverage ratio, revenue growth, market-to-book ratio, foreign ownership, largest shareholder, company age, cash reserves, and the dummy variable LOSS. A panel data regression was then conducted on 25 companies, with observations from the years 2015 - 2020. Model testing methods were employed to determine the best possible model for the data, and the Random Effect Models were identified to be most appropriate. Analysis of the Random Effect Models showed that for Return on Asset, only the control variables leverage ratio, revenue growth, market to book ratio, largest shareholder, and the dummy variable loss were significant determinants. While for Return on Equity, only the control variables revenue growth, market-to-book ratio, and the dummy variable loss were determinants. However, although COVID-19, ESG, the interaction of ESG and COVID-19, Size, Foreign Ownership, Firm Age, and Cash Reserves were not statistically significant, investors should not undervalue the potential effects of these on the financial performance of a firm.

Abstract Format







Sustainability—Philippines; Corporations—Philippines—Finance; COVID-19 Pandemic, 2020- —Influence

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