Journal ArticleDOI
ESG factors and risk-adjusted performance: a new quantitative model
TLDR
In this article, a mathematical analysis of 157 companies listed on the Dow Jones Sustainability Index and 809 that are not is presented, for a period of two years, assessing the impact of environmental, social and fair governance on their stock performance.Abstract:
Conventional finance wisdom indicates that less risk leads to lower returns. Against this belief, new mathematical analysis, introduced in this article, demonstrates that companies that incorporate Environmental, Social and Fair Governance (ESG) factors show lower volatility in their stock performances than their peers in the same industry, that each industry is affected differently by ESG factors, and that ESG companies generate higher returns. The study assessed, for a period of 2 years, 157 companies listed on the Dow Jones Sustainability Index and 809 that are not.read more
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The impact of sustainability (environmental, social, and governance) disclosure and board diversity on firm value: The moderating role of industry sensitivity
TL;DR: In this paper, a large panel data set comprising 812 listed European firms was used to investigate whether sustainability disclosure and female representation on boards affect firm value, and they observed that the firms with higher female representation had significantly superior environmental, social, and governance performance.
Journal ArticleDOI
Environmental, Social, Governance Activities and Firm Performance: Evidence from China
TL;DR: Li et al. as discussed by the authors found that corporate ESG activities have a significantly negative impact on firm performance and compared with state-owned enterprises and environmentally sensitive enterprises, non-state-owned entities and non-environmentally sensitive enterprises provide stronger evidence to support the above conclusions.
Journal ArticleDOI
Corporate scandals and the reliability of ESG assessments: evidence from an international sample
TL;DR: In this article, the reliability of environmental, social, and governance (ESG) assessments in the case of corporate scandals was investigated and it was shown that aggregated ESG assessments consisting of both retrospective and forward-looking indicators are useless when it comes to predicting corporate scandals.
Journal ArticleDOI
The impact of environmental, social and governance index on firm value: evidence from malaysia
TL;DR: In this paper, the authors investigated the relationship of environmental, social and governance (ESG) practices and the consequences related to their disclosure on the firm's value and found that ESG disclosures can play the role by which a firm can reduce the negative effect of weakness and improve the positive effect of strength.
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Posted Content
The Impact of Corporate Sustainability on Organizational Processes and Performance
TL;DR: In this paper, the authors investigate the effect of corporate sustainability on organizational processes and performance and find that corporations that voluntarily adopted sustainability policies by 1993 exhibit by 2009 distinct organizational processes compared to a matched sample of companies that adopted almost none of these policies - termed as Low Sustainability companies.
Journal ArticleDOI
Corporate Sustainability: First Evidence on Materiality
TL;DR: In this article, the authors developed a novel dataset by hand-mapping sustainability investments classified as material for each industry into firm-specific sustainability ratings and found that firms with good ratings on material sustainability issues significantly outperform firms with poor ratings on these issues.
Journal ArticleDOI
Sustainable Investing: Establishing Long-Term Value and Performance
TL;DR: In this paper, the authors examined more than 100 academic studies of sustainable investing around the world, and then closely examined and categorized 56 research papers, as well as 2 literature reviews and 4 meta studies.
Posted ContentDOI
ESG for All? The Impact of ESG Screening on Return, Risk, and Diversification
TL;DR: In this paper, the effects of using different ESG filters on an investable universe that serves as the starting point for a fund manager were investigated. And the authors found that the incorporation of ESG information contributes to better decision-making in every investment approach, with the optimal configuration depending on a fund managers preferences and willingness to deviate from an unscreened benchmark.
Journal ArticleDOI
Stakeholder relations and stock returns: On errors in investors' expectations and learning
TL;DR: In this paper, the authors investigated whether investor information predicted risk-adjusted returns due to errors in investors' expectations and ultimately ceased to do so as attention for such information increased, which is consistent with the idea that increased investor attention for stakeholder issues eventually eliminates mispricing.