The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy
Identifikátory výsledku
Kód výsledku v 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>
Výsledek na webu
<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>
Alternativní jazyky
Jazyk výsledku
angličtina
Název v původním jazyce
The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy
Popis výsledku v původním jazyce
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.
Název v anglickém jazyce
The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy
Popis výsledku anglicky
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.
Klasifikace
Druh
J<sub>imp</sub> - Článek v periodiku v databázi Web of Science
CEP obor
—
OECD FORD obor
50204 - Business and management
Návaznosti výsledku
Projekt
—
Návaznosti
N - Vyzkumna aktivita podporovana z neverejnych zdroju
Ostatní
Rok uplatnění
2023
Kód důvěrnosti údajů
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Údaje specifické pro druh výsledku
Název periodika
Cleaner and Responsible Consumption
ISSN
2666-7843
e-ISSN
—
Svazek periodika
8
Číslo periodika v rámci svazku
1
Stát vydavatele periodika
NL - Nizozemsko
Počet stran výsledku
7
Strana od-do
1-7
Kód UT WoS článku
001031941800001
EID výsledku v databázi Scopus
2-s2.0-85147112788