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Purpose: This research aims to determine the influence of environmental, social and governance (ESG) factors on market performance. The study shows the perspective of ESG on market performance. The study attempted to test the relationship between ESG and Tobin's Q and the effect of control variables. Design/methodology/approach: The study used panel data from a sample covering 720 firms and ran a fixed-effects model regression during the 2007–2019 period for eight European countries' listed companies. Findings: The findings reveal that ESG positively impacts Tobin's Q. According to the findings, high company ESG performance boosts market performance via the moderator effect of competitive advantage. The results indicate that all control variables are significant. The firm's leverage has a negative relationship with ESG. The size of the firm impacts ESG positively. Also, the results prove that the firm's size and industry positively affect Tobin's Q. Research limitations/implications: The findings of this study suggest that managers, practitioners and authorities interested in learning about ESG scores (ESGSs), market performance and competitive advantage might draw intriguing conclusions from the data. Managers can identify the appropriate levels of competitive advantage that improve market performance. Practitioners must determine whether fit, size, growth, leverage and industry could enhance market performance. The findings also give authorities and the board of directors information on future growth opportunities for the company and the country. Originality/value: The research presents a vision of how ESG factors affect market performance. This study aims to identify the positive link between ESGSs and European market performance. [ABSTRACT FROM AUTHOR]

This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of environmental performance. The investigation of the topic of the Composite Index of Environmental performance (CIEP) in the paper is carried out in the following logical sequence. The research is focused on the relationship between the composite index of environmental performances and the sociopolitical and economic elements of countries. Systematization literary sources and approaches for solving the problem of the influence of the integration of a composite Index of Environmental performance on the socio-political and economic dimensions. The paper presents the results of the empirical analysis with an econometric model which uses a composite index of environmental performance. The relevance of the decision of this scientific problem is that advanced and the methodological tools of the research methods try to measure the influence of Composite Index of Environmental performance model as a dependent variable on economic (technology, transportation, infrastructure, consumption of goods, international trade and tourism) and sociopolitical factors (democracy, freedom, transparency, and social policy) of countries. We used a generalized least squares estimation with a panel data from 6 countries observed during the period 2002-2016. Our results reveal that democracy, social policy, and transparency have a positive effect on environmental performance. Of the same, transport, infrastructure and tourism have a negative effect. The results of the research can be useful for countries, researchers and practitioners that try to improve the environmental performance with a good level of the social politico and economic dimensions. Finally, our results show that good environmental performance is related to the different characteristics of countries such as social, political and economics. And these results can be useful for countries to incorporate this valuable composite index in their objectives. [ABSTRACT FROM AUTHOR]