ECONOMIC-FINANCIAL PERFORMANCE OF COMPANIES LISTED IN THE ISE B3 CORPORATE SUSTAINABILITY INDEX

Abstract

The study investigates the effect of including companies in the theoretical portfolio of the Corporate Sustainability Index (ISE B3) on the average values of financial indicators. The variables of interest encompassed general liquidity (ILG), general indebtedness (IEG), return on investment (ROI), and return on equity (ROE). The ISE B3 consists of companies selected based on financial and sustainability criteria, with financial indicators crucial for monitoring business performance. The methodology was descriptive, quantitative, and qualitative, with hypothesis testing on two databases, including companies listed on the B3 between 2013 and 2022, comparing those that were included and those that were not included in the ISE B3 portfolio. Results revealed that companies included in the ISE B3 portfolio had higher ROI during the membership period, while those outside the portfolio showed higher ILG, indicating better liquidity. IEG was higher for companies outside the portfolio, suggesting higher indebtedness, while ROE was superior for companies included in the portfolio, indicating higher profitability on equity. Inclusion in the ISE B3 portfolio significantly influenced IEG, suggesting lower indebtedness for included companies, while ILG also showed statistically significant differences, indicating lower liquidity for companies in the portfolio, with ROI and ROE demonstrating significance at different levels, suggesting higher profitability returns for investments and equity in these companies. Further investigation of other indicators is recommended to better understand the variations influenced by companies' participation in the sustainability journey.