- Research Article
- 10.1177/22785337251399961
Sustainability and Global Investors: Evidence from India
- Dec 09, 2025
- Business Perspectives and Research
- Bhakti Agarwal + 1 more +1
This article aims to determine the impact of environmental, social, and governance (ESG) performance on global investors. Moreover, the study uses market capitalization (proxy of firm size) as a moderator, where the effect of firm size on the relationship between ESG and global investors is assessed. This study measures linear and non-linear associations among the variables. Employing quantile regression for the 25th, 50th, and 75th quantiles, panel data regression analysis (QPDRA) is applied to examine the association between ESG score and global investors. For the study, data of 316 Bombay Stock Exchange (BSE) Standard & Poor’s (S&P) 500 listed non-financial enterprises in India during 12 years (2011–2023) are combined. The study found that ESG has positive and linear effects on global investors at low and moderate levels, whereas ESG has a negative non-linear association (forming an inverted U-shaped curve) with global investors as well. Furthermore, market capitalization also influences the relationship between ESG and global investors at low quantiles. This study’s findings help managers to consider firm size and ESG factors while attracting international investors to the business. The results also provide information on the potential future growth of corporations to the board of directors and other authorities. International shareholders’ activity and ownership diversification in small and large companies can improve sustainability disclosure standards. We do not observe any article reporting the linear and non-linear relationship where ESG, global investors, and market capitalization are assessed on Indian firms. The research’s conclusions can guide Indian businesses, outlining a workable structure for highlighting the value of ESG disclosure in investment aspects. Therefore, the current article ensures novelty and multiple contributions.
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