Title: The impact of common financial ratios on market value ratios with the moderation of ESG pillar scores: an empirical analysis of emerging market corporations

Authors: Süleyman Toraşan; Hüseyin Öcal; Anton Abdulbasah Kamil

Addresses: Hochschule Nürtingen-Geislingen, Campus CI10 Sigmaringer Str.25, 72622 Nürtingen, Germany ' Istanbul Gelisim University, Cihangir Mah. Şehit Jandarma Komando Er Hakan Öner Sk, No:1 Avcılar/İstanbul, Turkey ' Istanbul Gelisim University, Cihangir Mah. Şehit Jandarma Komando Er Hakan Öner Sk, No:1 Avcılar/İstanbul, Turkey

Abstract: This study aims to provide empirical insights into how current (CR), asset turnover (AT), total debt to total asset (TD/TA), and return on equity (ROE) ratios for companies impact price-to-earnings (P/E), price-to-book (P/B), and dividend payout ratios (DIV). ESG pillar scores are used as moderators. The fiscal year-end data of 31 non-financial companies from 11 MSCI emerging markets index EMEA countries used between December 31, 2015, and December 31, 2022, have been obtained from the Bloomberg database. The moderated panel data regression model is employed in the analysis. We have observed that the ESG pillar scores moderate the relationship between CR, ROE, TD/TA ratios, and market value ratios for corporations. We recommend that portfolio managers follow ESG pillar score improvements closely to predict the market value ratios of corporations in emerging markets.

Keywords: ESG; financial ratios; price-to-earning ratio; P/E; price-to-book ratio; P/B; dividend payout ratio; DIV; portfolio investment; EMEA region.

DOI: 10.1504/IJSE.2026.151085

International Journal of Sustainable Economy, 2026 Vol.18 No.1, pp.40 - 56

Received: 30 Apr 2024
Accepted: 02 Sep 2024
Published online: 13 Jan 2026 *

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