Drivers of Value Creation and the Effect of ESG Risk Rating on Investor Perceptions through Financial Metrics
Abraham Puente De La Vega Caceres
Abstract:This study delves deeply into the multifaceted nature of investor value creation, focusing on financial health, growth, profitability, cash flow, and ESG (environmental, social, and governance) risk ratings. The research employs partial least squares structural equation modeling (PLS-SEM) to dissect the interactions among these variables in a sample of 482 S&P 500 firms. Data were obtained from the FINRA database (2023) and Sustainalytics ESG risk ratings (2023). The results indicate that solid financial h… Show more
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