Does country regulation influence corporate ESG practices?

Guidelines:

1. Only use the dataset available for your chosen project. Present the data in the form of
a BI dashboard.
2. Your Dashboard shall have a maximum of 2 pages (aka « tabs »). Select your visuals
wisely!
3. Use DAX functions to create new measures. The core activity of the project is to
replicate parts of the selected paper you read, and to this end DAX measures of
your choice will be needed.

For the ESG paper. To answer the research question, you will try to demonstrate
whether the level of corporate ESG performance is a function of country factors. You
will use Refinitiv data for a set of international listed companies (see Group Project
Excel file), as well as the WGI dataset from the Individual Project#1. You will
create two ESG performance measures chosen from those defined in the academic
paper, these will be your dependent variables. You will use WGI data as
independent variables to proxy for institutional (country) factors (choose two
relevant WGI pillars).

4. One visual is mandatory though to answer one of the following question, depending
on your project choice:
“Is there a linear relation between corporate ESG performance and country
factors?”

There are plenty of references available on the Internet on how to design a correlation
plot or a linear regression model in PowerBI. You may find the following links useful
to complete this part: https://datakuity.com/2021/10/29/correlation-coefficient-in-
power-bi-using-dax/ https://iterationinsights.com/article/linear-regression-in-power-
bi/

5. Pay attention to the impact of your dashboard, such as choice of visuals, colors,
clarity and structure of your dashboard, as this will count in the project grading.

Political system

Don’t forget to explain your graphs and do a conclusion about the relationship between
Political system and ESG.

Hypothesis 1: In countries where laws and regulations promote higher levels of competition, corporations will
score lower on the CSP index. === Regulatory Quality

Hypothesis 2: In countries where laws and regulations promote higher levels of shareholder protection,
corporations will score lower on the CSP index. === Rule of Law

Hypothesis 3: In countries with higher levels of corruption, corporations will score lower on the CSP index.
=== Control of Curroption
Hypothesis 4: In countries with a more leftist political ideology, corporations will score lower on the CSP index.

Education and labor system

Don’t forget to explain your graphs and do a conclusion about the relationship between
Education system and ESG.

Hypothesis 5: In countries where labor unions have more power, corporations will score higher on the CSP
index.

Hypothesis 6: In countries with higher availability of trained and skilled human capital, corpora- tions will score
lower on the CSP index.

Financial system

Don’t forget to explain your graphs and do a conclusion about the relationship between
financial system and ESG.

Hypothesis 7: In countries with a more market- based financial system, corporations will score higher on the
CSP index.

Hypothesis 8: In countries where a socially responsible stock market index exists, corpora- tions will score
higher on the CSP index.

Cultural System

Don’t forget to explain your graphs and do a conclusion about the relationship between
Cultural system and ESG.

Hypothesis 9: In countries that are characterized by higher levels of individualism, corporations will score
higher on the CSP index.

Hypothesis 10: In countries with higher levels of power distance, corporations will score lower on the CSP
index.