The symbiosis of ESG principles and financial performance: a longitudinal analysis of emerging markets through education policy

Economic Annals-XXI: Volume 215, Issue (5-6), Pages: 28-34

Citation information
Makhmudova, Z., Akhmedova, Z., Tillabayeva, G., Nurmatova, M., Khudaynazarova, D., & Khamzaeva, D. (2025). The symbiosis of ESG principles and financial performance: a longitudinal analysis of emerging markets through education policy. Economic Annals-XXI, 215(5-6), 28-34. doi: https://doi.org/10.21003/ea.V215-05

Zulfiya Makhmudova
MA (Management),
Senior Lecturer,
Practical English Department,
Tashkent State Technical University
2/1 Universitetskaya Str., Tashkent, 100095, Uzbekistan
zulfiyamaxmudova97@gmail.com
ORCID ID: https://orcid.org/0009-0001-1097-1287

Gulrux Tillabayeva
MA (Education),
Lecturer,
Department of Preschool Education,
Fergana State University
19 Mourabbiilar Str., Fergana, 150100, Uzbekistan
gulruhgulruh111y@mail.ru
ORCID ID: https://orcid.org/0009-0002-7901-6031

Dilorom Khudaynazarova
PhD (Economics),
Associate Professor,
Department ICT in Economy,
Tashkent University of Information Technologies named after Muhammad al-Khwarizmi
108 Amir Temur Str., Tashkent, 100200, Uzbekistan
dilorom2019@list.ru
ORCID ID: https://orcid.org/0009-0004-9551-6188

Zebiniso Akhmedova
PhD (Social Sciences),
Associate Professor,
Bukhara State Medical Institute
23 Navoi Str., Bukhara, 705018, Uzbekistan
axmedova.zebiniso@bsmi.uz
ORCID ID: https://orcid.org/0000-0003-3994-8950

Maftuna Nurmatova
PhD (Education),
Department of Geography and Economics,
Kokand State University
28-A Turkistan Str., Kokand, 150700, Republic of Uzbekistan
maftunanurmatova2020@gmail.com
ORCID ID: https://orcid.org/0009-0004-6905-5461

Dilfuza Khamzaeva
PhD (Economics),
Senior Lecturer,
Tourism Department,
Termez State University
43 Barkamol Avlod Str., Termez, Surkhandarya region, 190111, Uzbekistan
hamzayevad39@gmail.com
ORCID ID: https://orcid.org/0009-0003-8091-3503

The symbiosis of ESG principles and financial performance: a longitudinal analysis of emerging markets through education policy

Abstract. The aim of this study is to explore the long-term relationship between ESG principle compliance and financial performance of firms in the emerging market of Uzbekistan over a span of eleven years (2014-2024). According to panel data of 80 companies traded on the Tashkent Stock Exchange and employing regression models, the findings indicated that improving the composite ESG score has a statistically significant and positive influence on financial performance metrics. Specifically, one unit increase in the ESG score was associated with a 0.058-point improvement in return on assets (ROA). Further, the greatest impact of the three dimensions was «corporate governance», and sub-sample analyses also showed that there was greater effect of ESG on small and medium-sized firm performance compared to large firms. In conclusion, the findings suggest that in the context of Uzbekistanʼs emerging economy, using sustainable practices is not just an ethical imperative but a sound business decision.

Keywords: ESG Standards; Financial Performance; Emerging Market; Uzbekistan; Longitudinal Analysis; ROA; Tashkent Stock Exchange; Compliance; Financial Performance

JEL Classifications: Е24; Е41; Е64; I18; J28; J31

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V215-05

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Received 15.03.2025
Received in revised form 20.04.2025
Accepted 24.04.2025
Available online 27.06.2025