Abstract
This study examines the impact of ESG disclosure on firm valuation for non-financial companies listed on NSE India. Using panel regression, we find that ESG factors significantly enhance valuation, particularly in extractive industries facing strict regulations. Environmental initiatives reduce penalties and improve competitiveness, while strong governance fosters transparency and investor trust. Social performance, though less pronounced, supports financial stability. The results of the quantile regression reveal a stronger ESG-valuation relationship in higher quantiles, with environmental scores more influential at lower quantiles and governance significance increasing across quantiles, while the social score remains consistent. The sectoral analysis underscores the importance of ESG disclosure for extractive firms in maximizing valuation. These findings align with stakeholder and resource-based views, suggesting that greater ESG transparency enhances stakeholder confidence and operational efficiency. The study provides insights for investors and policymakers in emerging economies, emphasizing ESG’s role in sustainable business practices and long-term economic growth.