LAUSR

The United Nations SDG 2030 emphasizes the critical role of the healthcare sector in achieving universal health coverage and addressing global health challenges. The COVID‐19 pandemic triggered significant changes in the industry. This study looks at the distinct ESG challenges and opportunities that healthcare companies face in emerging markets like India versus developed markets. It assesses the effect of COVID‐19 on the ESG‐FP relationships of Indian healthcare firms. Using dynamic panel data analysis on 2205 firm‐level observations from 2017 to 2022, researchers discovered a lag effect of ESG measures on accounting metrics. While COVID‐19 temporarily increased FP, its long‐term effect was negligible. It offers empirical evidence on the effectiveness of ESG reporting and provides methodological advancements for robust measurement and analysis. Environmental and governance pillars have a greater influence on healthcare companies' FP‐directing managerial priorities. The study provides actionable recommendations for improving ESG practices in emerging markets like India.