In recent years, there has been a significant increase in interest in the low-carbon, "greener" economies from investors and the public sector. To assess companies' compliance in terms of Environmental, Social, and Governance (ESG) criteria, Rating Agencies have developed ESG risk ratings, which allow for determining the effectiveness of enterprises in terms of ESG. The article is intended to research the efficiency of mining and metallurgical enterprises based on compilations of ESG risk ratings of leading international Rating Agencies. The authors briefly described the most recognized global ESG rating methodologies and compared the top 5 ESG ratings. The results of the qualitative assessment of ESG ratings formed this top-5 list. The current situation in the formation of rating ratings was described. In accordance to open data sources, the ratings of mining and metallurgical enterprises were collected, then ranged (based on an expert assessment) and highlighted the divergence of ESG ratings with explanations of these discrepancies. This study revealed a significant correlation between ESG ratings of leading Rating Agencies and assessed the efficiency of mining and metallurgical enterprises based on compilations of these ratings. Based on the graphical analysis, there is a correlation between the ESG ratings of the different Rating Agencies since when the enterprises are ranked from the best to the worst, the graph has a distinct direction of values from the lower left corner to the upper right corner.
Currently, many large established companies which perform digital transformation use corporate venturing. It is the practice of directly investing corporate funds into external start-up companies. One of the strategies of such venture companies is the "buy and build" approach or using a platform company that makes sequential add-on acquisitions of smaller companies. However, there is controversial evidence that such a strategy can underperform conventional leveraged buyout (LBO) strategy and even can destroy the value of the company. Unlike LBO, a buy-and-build strategy requires careful execution and deployment of large financial and non-financial resources.There is few research that provides a comparative analysis between the mentioned strategies. Thus, the goal of this paper is to compare the performance of the buy-and-build strategy with that of LBO. Our sample included 2206 venture capital firms from nine countries in 1997-2020. Our findings indicated that the buy-and-build strategy in a cross-industrial setting outperforms LBO in terms of sales but underperforms in return of assets (ROA). Nevertheless, PE firms with an above-average reputation can count on higher sales, return on assets, and return on sales in buy and build rather than in LBO. The results of the study can be used by managers of industrial companies pursuing a corporate venturing approach to predict the performance of buy-and-build compared to that of conventional LBO.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.