Non-Financial Factors in Creation and Preservation of Company Value in Telecommunication Industry (A.N. Aranovich, сетевое издание "Электронный журнал "Корпоративные финансы" Journal of Corporate Finance Research", N 1, 2023 г.)

Aranovich A.N. Non-Financial Factors in Creation and Preservation of Company Value in Telecommunication Industry

A.N. Aranovich - Financial Analyst B1 (ex-EY), Moscow, Russia

This paper investigates the impact of financial and non-financial factors on the value of companies in the telecommunications industry. Such variables as the debt ratio, tangibility, return on assets, etc. were selected as financial factors. ESG indicators were used as non-financial factors. The research topic is relevant for decision-making and the development of recommendations for companies, as it assesses the level of companies' involvement in solving environmental, social, and governmental problems. The work uses data from two databases (Bloomberg and Capital IQ) for 94 companies in the telecommunications industry between 2011 and 2021. The results suggest that the companies' disclosure of information about the overall ESG ratio and the "G"indicator has a positive effect on the company's value, while the disclosure of "E" and "S" indicators does not affect the value of a business.

Keywords: value of companies in the telecommunications industry, non-financial factors, ESG indicators, financial factors, debt ratio, tangibility, return on assets