Machine Learning in Financial Performance Prediction: The Role of ESG

Dublin Core

Title

Machine Learning in Financial Performance Prediction: The Role of ESG

Creator

Hien Thi Thu Hoang

Proceedings Item Type Metadata

meta_title

Machine Learning in Financial Performance Prediction: The Role of ESG

Abstract/Description

This study explores the application of machine learning techniques to predict corporate Environmental, Social, and Governance (ESG) scores, with a particular focus on identifying the most influential factors derived from company reports. Three predictive models - linear regression, random forests, and gradient boosting - were employed to estimate ESG risk scores. The experimental results demonstrate that the gradient boosting model outperforms the other approaches in predictive accuracy. Analysis using Shapley Additive Explanations (SHAP) reveals that industry classification is the most significant determinant of ESG scores, followed by key financial indicators such as Price/Sales ratio, Price/Book ratio, and Market Capitalization. The proposed predictive framework offers valuable insights for investors and corporations, facilitating informed investment decisions and strategic enhancements in ESG performance.

publication_date

2025/06/20

pdf_url

https://insyma.org/proceedings/files/articles/8. Vietnam_Hien Thi Thu Hoang.pdf

abstract_html_url

https://insyma.org/proceedings/items/show/502

keywords

ESG, Random Forest, Decision Tree, Logistic Regression, financial performance, machine learning

firstpage

1171

lastpage

1174

issn

3047-857X

conference

Proceedings of the International Symposium on Management (Volume 21, 2024)

Volume

22

publisher_name

Fakultas Bisnis dan Ekonomika, Universitas Surabaya

Author #1

Hien Thi Thu Hoang

Author #2

Trieu Dang Viet

Author #3

Trang La Thi Thu

no article

190

authors

Hien Thi Thu Hoang, Trieu Dang Viet, Trang La Thi Thu

Files

8. Vietnam_Hien Thi Thu Hoang.pdf

Citation

Hien Thi Thu Hoang, “Machine Learning in Financial Performance Prediction: The Role of ESG,” Proceedings of the International Symposium on Management (INSYMA), accessed July 1, 2025, https://insyma.org/proceedings/items/show/502.

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