Some academic studies have shown that well governed companies may perform better in financial terms. Increasingly, investment approaches that consider environmental, social, and governance factors, known as ESG, are being adopted. In addition to good governance practices, management decisions regarding investment and financing also play a central role in corporate profitability and performance. To remain in business as a going concern and to increase shareholder value over time, management must consistently identify and invest in profitable long-term capital projects relative to cost of capital (financing) and make optimal use of leverage and working capital in day to day operations.