ESG Performance and Financial Value in Washington, DC, Maryland, and Virginia Firms: A Regional Case Study

Authors

  • Brandon Schweitzer University of the District of Columbia

Keywords:

ESG, Environmental Disclosure, ROA, EBITDA, corporate value, stakeholder theory, fixed-effects panel

Abstract

The purpose of this study is to examine the relationship between environmental, social, and governance (ESG) performance and corporate financial performance in a regional context of Washington, DC, Maryland, and Virginia (DMV) publicly traded firms. Using panel regression models with fixed company and year effects, we explore whether overall ESG scores and Environmental Pillar (EP) scores correlate with return on assets (ROA) and earnings (EBITDA) from 2015 to 2024. Control variables include firm size (log of total assets) and leverage (net debt to assets). Data on ESG metrics and financials for 38 firms were compiled from Refinitiv, Bloomberg, and company filings. The analysis finds no statistically significant positive correlations between ESG or EP scores and ROA or EBITDA in this sample. While larger firm size is associated with higher EBITDA and ROA, and leverage shows the expected negative relation with ROA, neither ESG nor EP scores exhibits a meaningful impact on profitability or earnings. These results suggest that, in this regional U.S. context, stronger ESG performance did not translate into short-term financial gains. The findings align with some prior studies in emerging markets that report inconclusive ESG–value links, underscoring the need for further research with broader samples and consideration of long-term effects.

Author Biography

Brandon Schweitzer, University of the District of Columbia

Dr. Schweitzer brings a wealth of expertise to the table, boasting a remarkable decade-long tenure as an educator in accounting and an extensive two-decade journey in the realm of professional accounting. His dynamic energy is matched by his comprehensive experience, positioning him as a seasoned authority in both the academic and managerial spheres of accounting. His standout qualities encompass not only his proactive and self-initiated approach but also his adeptness in executive roles, adept problem-solving, proficient project management, and deftly handling multiple tasks concurrently. In addition, Dr. Schweitzer's skill set extends to exceptional organizational prowess, compelling communication finesse, and seamless implementation capabilities. Throughout his professional trajectory, he has assumed pivotal responsibilities that span the holistic management of finance and accounting operations. This encompasses overseeing day-to-day financial activities, including the supervision of employees and the meticulous preparation of financial reports and analyses.

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Published

2026-01-21

How to Cite

Schweitzer, B. (2026). ESG Performance and Financial Value in Washington, DC, Maryland, and Virginia Firms: A Regional Case Study. Journal of Accounting, Ethics & Public Policy, JAEPP, 27(1), 1. Retrieved from https://jaepp.org/index.php/jaepp/article/view/422

Issue

Vol. 27 No. 1 (2026): Journal of Accounting, Ethics & Public Policy, JAEPP (Ongoing)

Section

Articles

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Copyright (c) 2026 Brandon Schweitzer

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This work is licensed under a Creative Commons Attribution 4.0 International License.

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