The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F23%3A00131473" target="_blank" >RIV/00216224:14560/23:00131473 - isvavai.cz</a>

Result on the web

<a href="https://pdf.sciencedirectassets.com/777794/1-s2.0-S2666784322X00053/1-s2.0-S2666784323000025/main.pdf?X-Amz-Security-Token=IQoJb3JpZ2luX2VjEDAaCXVzLWVhc3QtMSJGMEQCIFsT6LOVOeLoEGjyAyTqGmk0IWXZEGyXjB47co00%2BOChAiAq5tcp1buCU0NvaYC7Du4c7fC3dQ5M%2BKlsa3XV6k4" target="_blank" >https://pdf.sciencedirectassets.com/777794/1-s2.0-S2666784322X00053/1-s2.0-S2666784323000025/main.pdf?X-Amz-Security-Token=IQoJb3JpZ2luX2VjEDAaCXVzLWVhc3QtMSJGMEQCIFsT6LOVOeLoEGjyAyTqGmk0IWXZEGyXjB47co00%2BOChAiAq5tcp1buCU0NvaYC7Du4c7fC3dQ5M%2BKlsa3XV6k4</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.clrc.2023.100101" target="_blank" >10.1016/j.clrc.2023.100101</a>

Result language

angličtina

Original language name

The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy

Original language description

Recently, there has been significant research on the environmental, social, and governance (ESG) aspects of wealth generation. Managers have tried to attract investors for sustainable growth by pushing for ESG investments. This study attempts to determine the relationship between ESG scores on shareholders' wealth and define possible selection criteria for future investments. Notably, there are funds and investment avenues that are specifically designed for ESG themes, urging toward sustainable wealth creation. However, investors' focus remains on their returns and wealth creation. In recent years, reporting ESG scores has become standard practice for most rating agencies to report the financial health of companies. Thus, this study employs a linear regression model to analyze the impact of ESG scores on the equity returns of 225 Indian companies. The results show empirical evidence of the positive impact of the governance (G) factor on equity returns, while it reports the negative impact of the environmental (E) factor on equity returns. Moreover, the impact of the social (S) factor is found to be insignificant. Therefore, we conclude that financial motivations may be needed to trigger E− and S- factor practices by companies. It is important for companies to be very conscious of their governance practices to improve their shareholders’ wealth.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

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Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Cleaner and Responsible Consumption

ISSN

2666-7843

e-ISSN

—

Volume of the periodical

8

Issue of the periodical within the volume

1

Country of publishing house

NL - THE KINGDOM OF THE NETHERLANDS

Number of pages

7

Pages from-to

1-7

UT code for WoS article

001031941800001

EID of the result in the Scopus database

2-s2.0-85147112788