Date of Completion

Spring 5-1-2022

Thesis Advisor(s)

Youli Zou; Alina Lerman

Honors Major



Accounting | Business Analytics | Business Law, Public Responsibility, and Ethics | Corporate Finance


A growing number of companies have been providing disclosures regarding ESG issues and goals in their financial reports. Studies have investigated the association between the quality of ESG reporting and the financial performance of various companies, which showed various results. However, the association between the two factors remains unclear. In this study, I examine the relationship between the quality of ESG reporting and the profitability of companies in the trucking and oil industries from 2011 to 2020. I predict that greater quality of ESG reporting results in higher profitability of companies in both industries. Overall, the results of this study are mixed. The results suggest that 1) no correlation exists between quality of ESG reporting and ROA of trucking companies; 2) increased length and specificity of ESG disclosures are associated with a decrease in the ROE and after-tax ROIC of trucking companies; and 3) increased ESG reporting quality correlates with increased EBITDA of trucking companies. My findings also reveal that 1) increased thoroughness of ESG reporting is associated with a decrease in ROE of oil and gas companies; and 2) the quality of ESG reporting has no effect on the ROA, after-tax ROIC, and EBITDA of the oil and gas companies.