Does ESG certification add firm value?

Abstract

This is a PDF file of an article that has undergone enhancements after acceptance, such as the addition of a cover page and metadata, and formatting for readability, but it is not yet the definitive version of record. This version will undergo additional copyediting, typesetting and review before it is published in its final form, but we are providing this version to give early visibility of the article. Please note that, during the production process, errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.

The relationship between the Covid-19 media coverage and the Environmental, Social and Governance leaders equity volatility: a time-frequency wavelet analysis

“…Already prior to the Covid-19, the literature on ESG factors has experienced a significant expansion. A number of studies have analysed the return and volatility attributes of the ESG assets (Alda 2020;Wong et al 2020). One of the major drivers of this expansion resides in that an important component of the SRI screening is based on ESG leadership criteria.…”

“…For example, Wong et al (2020) find that ESG certification adds company value. However, it still remains to be studied whether the Covid-19 pandemics will strengthen investor´s focus on ESG factors.…”

Impact of the Covid-19 induced panic on the Environmental, Social and Governance leaders equity volatility: A time-frequency analysis

“…Consequently, we have seen the emergence of new assets such as Islamic finance assets and Environmental, Social, and Governance (ESG) securities. Several studies have analyzed the return and volatility attributes of these assets ( Umar et al, 2018 ; Alda, 2019 ; Umar et al, 2020b ; Wong et al, 2020 ; Umar and Gubareva, 2021 ; and Umar and Gubareva, 2021a ).…”

The effect of social and ethical practices on environmental disclosure: evidence from an international ESG data

“…Thus, a positive synergy occurs between the objectives of the firm and the objectives of its environment, i.e. a good atmosphere at the social level enhances research, sustainable and productive development, as well as good innovation policy to improve the value of the company (Elvira et al , 2016; Wong et al , 2020). Hence, the appearance of a new strategy based on the concept of CSR that encompasses the goals of the company and its environment.…”

“…One argument is that firms should treat all stakeholders more or less equally and should make similar investments in different CSR activities (Ongsakul et al , 2020). Consequently, executives are sometimes obliged to intervene in the process of social and environmental information disclosure to improve the stock market value of the company, which motivates the partners of their companies and also reduces the risks to which they are exposed (Akisik and Gal, 2017; Welbeck et al , 2017; Baalouch et al , 2019; Wong et al , 2020; Murashima, 2020).…”