Journal ArticleDOI
Every Little Helps? ESG News and Stock Market Reaction
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In this article, the authors investigate the extent and the determinants of the stock market's reaction following ordinary news related to environmental, social and governance issues, and find that firms facing negative events experience a drop in their market value of 0.1%, whereas companies gain nothing on average from positive announcements.Abstract:
Stories about corporate social responsibility have become very frequent over the past decade, and managers can no longer ignore their impact on firm value. In this paper, we investigate the extent and the determinants of the stock market’s reaction following ordinary news related to environmental, social and governance issues—the so-called ESG factors. To that purpose, we use an original database provided by Covalence EthicalQuote. Our empirical analysis is based on about 33,000 ESG news (positive or negative), targeting one hundred listed companies over the period 2002–2010. On average, firms facing negative events experience a drop in their market value of 0.1%, whereas companies gain nothing on average from positive announcements. We find also that market participants are responsive to the media, but they do not react to firms’ press releases or to NGOs’ disclosures. Moreover, our results indicate that sector’s reputation mitigates the loss (the goodwill hypothesis) and that cultural proximity and lexical contents of ESG disclosures play a significant role in the magnitude of the impact.read more
Citations
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The Influence of Firm Size on the ESG Score: Corporate Sustainability Ratings Under Review
TL;DR: In this paper, the authors used Thomson Reuters ASSET4 ESG ratings to analyze the influence of firm size, a company's available resources for providing ESG data, and the availability of a company’s ESGdata on the company's sustainability performance.
Journal ArticleDOI
ESG and Corporate Financial Performance: Empirical Evidence from China’s Listed Power Generation Companies
TL;DR: Wang et al. as discussed by the authors explored the relationship between ESG performance and financial indicators in the energy power market based on the panel regression model and found that good ESG performances can indeed improve financial performance, which has significant meanings for investors, company management, decisionmakers, and industry regulators.
Posted Content
Environmental Protection: A Theory of Direct and Indirect Competition for Political Influence
TL;DR: This article developed a model of "direct" and "indirect" competition for political influence and found that they are complementary and that an increase in the effectiveness of public persuasion or a rise of public environmental awareness induces substitution between the two.
Journal ArticleDOI
The impact of CSR on corporate reputation perceptions of the public—A configurational multi‐time, multi‐source perspective
TL;DR: In this article, the authors investigated the connection between corporate social responsibility (CSR) and corporate reputation among the public using fuzzy set qualitative comparative analysis (fsQCA), and found that positive/negative CSR activities influence reputation in the expected directions.
Journal ArticleDOI
Understanding the effects of Environment, Social, and Governance conduct on financial performance: Arguments for a process and integrated modelling approach
Michael T. Lee,Ikseon Suh +1 more
TL;DR: In this paper , the authors synthesize recent studies for emerging themes and implications; argue for a process and integrated approach for modelling causality between ESG conduct and financial performance variables; and suggest methods to analyze the models.
References
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Journal ArticleDOI
The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders
TL;DR: For the better part of 30 years now, corporate executives have struggled with the issue of the firm's responsibility to its society, and it became quickly apparent to everyone, however, that this pursuit of financial gain had to take place within the laws of the land.
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A Three-Dimensional Conceptual Model of Corporate Performance
TL;DR: In this article, a conceptual model that comprehensively describes essential aspects of corporate social performance is presented, and three aspects of the model address major questions of concern to academics and managers alike: What is included in corporate social responsibility? What are the social issues the organization must address? and what is the organization's philosophy or mode of social responsiveness?
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Corporate Social and Financial Performance: A Meta-Analysis
TL;DR: This article conducted a meta-analysis of 52 studies and found that corporate virtue in the form of social responsibility and, to a lesser extent, environmental responsibility is likely to pay off, although the operationalizations of CSP and CFP also moderate the positive association.
Journal ArticleDOI
Corporate Social Responsibility: a Theory of the Firm Perspective
TL;DR: In this article, the authors outline a supply and demand model of corporate social responsibility (CSR) and conclude that there is an "ideal" level of CSR, which managers can determine via cost-benefit analysis.
Journal ArticleDOI
Mind the Gap: why do people act environmentally and what are the barriers to pro-environmental behavior?
Anja Kollmuss,Julian Agyeman +1 more
TL;DR: A number of theoretical frameworks have been developed to explain the gap between the possession of environmental knowledge and environmental awareness, and displaying pro-environmental behavior as discussed by the authors, but no definitive explanation has yet been found.