Machine Learning Based ESG Disclosure Sentiment and Financial Performance: Corporate Sustainability and Behavioural Finance Implications from Nifty 50 Firms

A Binita Singha; Moonmoon Kalita; Biju Mani Das

doi:10.36948/ijfmr.2026.v08i06.91246

Machine Learning Based ESG Disclosure Sentiment and Financial Performance: Corporate Sustainability and Behavioural Finance Implications from Nifty 50 Firms

Author(s)	Ms. A Binita Singha, Ms. Moonmoon Kalita, Prof. Dr. Biju Mani Das
Country	India
Abstract	This study explores the sentiment inherent in Environmental, Social, and Governance (ESG) disclosures from fifteen Nifty 50 firms and its relationship with financial performance from perspectives of corporate sustainability and behavioral finance. The study addresses the gap existing between sentiment of India's post-Business Responsibility and Sustainability Reporting (BRSR) and ESG disclosure literature, wherein the prior research has relied on third-party ratings to measure ESG disclosures. The findings reveal that ESG disclosures have negative tones in most cases (56.3%) indicative of a corporate culture that promotes risk disclosure, although significant differences exist between firms. Overall, negative sentiments are highest in social disclosures (61.1%), followed by governance (57.8%), and environmental (50.0%). However, governance dominates negative sentiment at firm level. Correlation and Ordinary Least Squares (OLS) regression analyses on 44 firm-year observations confirm that sentiment scores are strong positive predictors of Return on Assets (ROA) and Return on Equity (ROE), with greater significance in ROE conform to behavioral finance theories of investor reaction to tone.
Keywords	ESG Sentiment Analysis, Corporate Disclosure, Financial Performance, Nifty 50, Machine Learning, Natural Language Processing
Field	Business Administration
Published In	Volume 8, Issue 6, November-December 2026
Published On	2026-11-03
DOI	https://doi.org/10.36948/ijfmr.2026.v08i06.91246

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Machine Learning Based ESG Disclosure Sentiment and Financial Performance: Corporate Sustainability and Behavioural Finance Implications from Nifty 50 Firms

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