The Risk Awareness of Sovereign Wealth Funds in Relation to ESG Assets: Do Biggest World Institutional Investors Act Sustainably?

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F24%3A43925555" target="_blank" >RIV/62156489:43110/24:43925555 - isvavai.cz</a>

Výsledek na webu

<a href="https://doi.org/10.11118/ejobsat.2024.003" target="_blank" >https://doi.org/10.11118/ejobsat.2024.003</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.11118/ejobsat.2024.003" target="_blank" >10.11118/ejobsat.2024.003</a>

Jazyk výsledku

angličtina

Název v původním jazyce

The Risk Awareness of Sovereign Wealth Funds in Relation to ESG Assets: Do Biggest World Institutional Investors Act Sustainably?

Popis výsledku v původním jazyce

This paper investigates the dependence of the investment behavior of Sovereign Wealth Funds (SWFs) on the Environmental, Social, and Governance (ESG) performance of their underlying investments in public equity holdings during the period of 2007 to 2022 collectively overseeing a substantial 71% of total public equity holding investments by SWFs globally. The unique data set with ESG control variables consist of mainly self-reported Corporate Social Responsibility (CSR) ESG information (ESG rating from Refinitiv/LSEG) and dynamic risk assessed ESG information purely based on external evaluation of the firms (Reputational Risk Indicator from RepRisk). The control variable which monitors the Corporate Social Irresponsibility (CSI) of target companies is novel to previous studies. Our findings suggest that SWFs still consider self-reported CSR information more than public CSI data in their investment decisions. Furthermore, a change in past ESG data of underlying public equity holdings - both CSR and CSI - does not seem to have a significant effect on the investment into underlying public equity holdings. Our conclusions could help to encourage greater ESG integration into SWF investment strategies and promote sustainable investing practices more broadly not limited to liquid assets.

Název v anglickém jazyce

The Risk Awareness of Sovereign Wealth Funds in Relation to ESG Assets: Do Biggest World Institutional Investors Act Sustainably?

Popis výsledku anglicky

This paper investigates the dependence of the investment behavior of Sovereign Wealth Funds (SWFs) on the Environmental, Social, and Governance (ESG) performance of their underlying investments in public equity holdings during the period of 2007 to 2022 collectively overseeing a substantial 71% of total public equity holding investments by SWFs globally. The unique data set with ESG control variables consist of mainly self-reported Corporate Social Responsibility (CSR) ESG information (ESG rating from Refinitiv/LSEG) and dynamic risk assessed ESG information purely based on external evaluation of the firms (Reputational Risk Indicator from RepRisk). The control variable which monitors the Corporate Social Irresponsibility (CSI) of target companies is novel to previous studies. Our findings suggest that SWFs still consider self-reported CSR information more than public CSI data in their investment decisions. Furthermore, a change in past ESG data of underlying public equity holdings - both CSR and CSI - does not seem to have a significant effect on the investment into underlying public equity holdings. Our conclusions could help to encourage greater ESG integration into SWF investment strategies and promote sustainable investing practices more broadly not limited to liquid assets.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

<a href="/cs/project/GA23-07983S" target="_blank" >GA23-07983S: Sociální chování firem v reakci na CSR politiky, instituce a ekonomické problémy</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2024

Kód důvěrnosti údajů

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

Název periodika

European Journal of Business Science and Technology

ISSN

2336-6494

e-ISSN

2694-7161

Svazek periodika

10

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

20

Strana od-do

5-24

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85201781879