ESG Performance and Financial Returns in Renewable Energy Firms: Evidence from Indian Markets: Part 2: Research Methodology

This is a basic paper that details the research design adopted to study the connection between ESG (Environmental, Social, and Governmental) performance and monetary results for Renewable energy companies listed in India. Building on the theoretical foundations and systematic literature review presented in Part 1, this study follows up on the aforementioned in a quantitative panel data way using the time span 2014-2023. In the paper, the sample selection method, the data sources, the operationalisation of the variables and the econometric strategy are highlighted. It offers fixed-effects panel regression models, Generalised Method of Moments (GMM), and instrumental variable (IV) methods to deal with endogeneity. Robustness checks are conducted using alternative ESG rating sources, using sub-period analysis, and conducting quantile regression. The design is based on stakeholder theory, resource-based view and legitimacy theory, and it is adjusted to India's institutional framework, such as the SEBI BRSR framework and the Indian target of 500GW of renewable energy by 2030.