Using an extensive international dataset based on Refinitiv environmental, social, corporate governance (ESG), and controversies scores, this chapter contributes investigating whether a high overall ESG score improves firm value and decreases risk and to what extent ESG controversies may negatively affect a firm’s financial performance. We find strong evidence of an improvement in value and risk associated with a better ESG score. Results are confirmed in the case of every single E, S, and G pillar. Findings also suggest that firms facing adverse ESG events experience a significant negative effect on value and risk. Our results are robust to different value and risk variables specifications and highlight that controversies affect more financial firms and emerging markets.

The Impact of ESG Score and Controversy on Stock Performance / Paola, Brighi; Carlo Francesco Della Bina, Antonio; Venturelli, Valeria. - (2023), pp. 213-252. [10.1007/978-3-031-32931-9_9]

The Impact of ESG Score and Controversy on Stock Performance

Valeria Venturelli
2023

Abstract

Using an extensive international dataset based on Refinitiv environmental, social, corporate governance (ESG), and controversies scores, this chapter contributes investigating whether a high overall ESG score improves firm value and decreases risk and to what extent ESG controversies may negatively affect a firm’s financial performance. We find strong evidence of an improvement in value and risk associated with a better ESG score. Results are confirmed in the case of every single E, S, and G pillar. Findings also suggest that firms facing adverse ESG events experience a significant negative effect on value and risk. Our results are robust to different value and risk variables specifications and highlight that controversies affect more financial firms and emerging markets.
2023
19-lug-2023
New Challenges for the Banking Industry
Carbó-Valverde, S., Cuadros-Solas, P.J.
Palgrave Macmillan
The Impact of ESG Score and Controversy on Stock Performance / Paola, Brighi; Carlo Francesco Della Bina, Antonio; Venturelli, Valeria. - (2023), pp. 213-252. [10.1007/978-3-031-32931-9_9]
Paola, Brighi; Carlo Francesco Della Bina, Antonio; Venturelli, Valeria
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11380/1311966
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