ESG Impact on Market Performance of Firms: International Evidence
By Jean-Michel Sahut, Hélène Pasquini-Descomps. Management International, 2015
114 citations recorded by the source corpus.
This study investigates how news-based scores in ESG (Environmental, Social, and corporate Governance) may have influenced the monthly stocks’ market return in Switzerland, the US, and the UK during the 2007–2011 period. We find that the variation of the overall ESG score is only significant in the UK. We also show that the changes in sub-category ratings of GRI (namely, governance, economic, environment, labor, human rights, society, and products) exhibit a small but significant impact on the stock’s performance during limited periods or on limited sectors, which varies among the countries. Finally, our non-parametric kernel regression highlights that the function linking a stock’s performance to its ESG-score changes is probably non-linear.
Subfields: Accounting, Finance, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/ef73e7ff1c1e9e646eb1dd87d80d9c8dea7453f2
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In Accounting
In Strategy and Management
Citations in the corpus
- Exploring environmental, social, and governance disclosure effects on the S&P 500 financial performance (2019, background): “…domain, we take legitimacy theory as the theoretical lens with which to build an understanding of the relationship between ESG signals and firm performance (Lai, Melloni, & Stacchezzini, 2016; Wang & Sarkis, 2017) as well as stakeholder theory (Freeman, 1984; Sahut & Pasquini ‐ Descomps, 2015).”