What are the Sector-specific ESG Disclosure Effects on corporate preformance and stock price volatility?
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Sector-specific ESG disclosure effects on corporate performance and stock price volatility vary across industries. Studies show that ESG performance can reduce stock price volatility , enhance stock price informativeness , and improve return growth, with governance having the strongest impact . Additionally, adverse media coverage of ESG issues can negatively affect stock performance, especially for smaller and less liquid firms, with industry-specific differences observed . The findings suggest that ESG disclosure influences stock prices through mechanisms like analyst attention, corporate reputation, and investor sentiment, highlighting the importance of considering ESG factors in investment decisions for both investors and creditors.
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| Papers (5) | Insight |
|---|---|
| Sector-specific ESG disclosure impacts corporate performance positively, with Governance having the strongest effect. Stock price volatility changes over time, indicating limitations in information transmission. | |
| Sector-specific ESG disclosure positively correlates with stock price movement, indicating higher information efficiency in ESG-active companies, influencing investment decisions and potentially enhancing corporate performance. | |
64 Citations | Sector-specific ESG disclosure effects vary; 'sin' industries show resilience, while candy & soda, steel works, banking, and insurance face significant stock price volatility due to adverse media coverage. |
01 Jan 2022 43 Citations | Sector-specific ESG disclosure effects vary; 'sin' industries show resilience, while candy & soda, steel works, banking, and insurance face significant stock price volatility due to adverse media coverage. |
| Not addressed in the paper. |
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