Investigating the Relationship between ESG Performance and Financial Performance: Evidence from Listed Mining Companies in Zimbabwe

Abstract

In Zimbabwe, mining companies pose significant environmental, social and governance impacts. This paper investigates the nexus between ESG performance and financial performance of Zimbabwean mining companies. The mode of investigation is to establish whether the ESG systems affect the companies’ investment decision-making. This article used a quantitative research design. Zimbabwe has a total of 5 mining companies that are nationally recognized and monitored in the Zimbabwe Stock Exchange (ZSE). A sample of 25 mining companies was selected from the smaller section of mines. The results show that there is a positive co-relationship between ESG performance and investment decisions by companies. This study contributes to the emerging literature on corporate ESG by highlighting the relationship between ESG performance and investment decisions in the mining sector in Zimbabwe.