ESG investing and the financial performance: a panel data analysis of developed REIT markets

Erol, Işıl; Unal, Umut; Coşkun, Yener

doi:10.1007/s11356-023-28376-1

Cited by 13 publications

(3 citation statements)

References 53 publications

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“…The findings confirm that technological capability, B2B seller skill, and KAM levels contribute to the company's sustainable numerical performance through ESG management because these factors do not contain 0. As can be seen in [119,120], this is consistent with research showing numerical results by imprinting a positive image of the company on customers by practicing ESG management. Ye et al (2022) [121] also observed that ESG reporting leads to stable financial performance through stock returns.…”

Section: Impacts Of the Factors On Sustainable "Non-financial" Perfor...supporting

confidence: 87%

Analyzing Factors That Affect Korean B2B Companies’ Sustainable Performance

Lee,

Kim

2024

Sustainability

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This study empirically examines factors that can influence the sustainable corporate performance of Korean business-to-business (B2B) companies with the help of unique survey data. Factors such as technological capability, the chief executive officer (CEO)’s risk-taking propensity, B2B seller skill, and key account management (KAM) are analyzed to clarify their impact on sustainable financial and non-financial performance. In particular, given that environment, society, and governance (ESG) reporting has recently been widely recognized as an important evaluation factor for companies, we look at the mediating effects of ESG management on sustainable business performance. The results show that the CEO’s risk-taking propensity and B2B seller skill significantly impact the company’s sustainable financial performance, while technological capability and the CEO’s risk-taking propensity significantly impact sustainable non-financial performance. The fact that a CEO’s risk-taking propensity affects both sustainable financial and non-financial performance indicates the importance of entrepreneurial competency in the sustainability of the company. Furthermore, the findings reveal that ESG management plays a crucial role in sustainable corporate performance. The mediating role of ESG management allows technological capability, B2B seller skill, and KAM to influence sustainable financial performance significantly. Likewise, all of the explanatory factors contribute to the company’s sustainable non-financial performance through ESG management. The findings are important for both practitioners and scholars because they emphasize the need to establish an optimal ESG management strategy for corporate survival and sustainability. Furthermore, this study underscores that ESG management should be implemented by all organizational members, from CEOs to employees. Future research will include more comprehensive samples and analyze various strategic factors not covered in this study to derive effective ways by which companies can increase their performance and sustainability. We will also explore the factors that contribute to good ESG management practices.

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Section: Impacts Of the Factors On Sustainable "Non-financial" Perfor...supporting

confidence: 87%

Analyzing Factors That Affect Korean B2B Companies’ Sustainable Performance

Lee,

Kim

2024

Sustainability

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“…Copulas have been used extensively in quantitative finance to capture tail risk and, lately, in applications for portfolio optimization (Patton 2012;Dewick and Liu 2022;Nagler et al 2022). As suggested by many studies on ESG investing that support the null hypothesis of stationarity (Jain et al 2020;Górka and Kuziak 2021;Ouchen 2022;Erol et al 2023), we now proceed by applying an econometric analysis to the reference series. tests detecting values below ten.…”

Section: Stoxx Europe Esg Leaders Select 30 Indexmentioning

confidence: 99%

Volatility and Herding Bias on ESG Leaders’ Portfolios Performance

Gavrilakis,

Floros

2024

JRFM

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We here analyze the factor loadings given by the CAPM, the Fama–French three (FF3), and the five-factor model (FF5), and test the performance and the validity of adding two more factors (volatility and dispersion of returns) to the FF5 factor model of European index-based ESG leaders’ portfolios. Our ESG leaders’ portfolios generated significant negative alphas during 2012–2022, corroborating the literature’s negative argument. The negative abnormal returns of ESG leaders’ portfolios are homogeneous across the three ESG pillars. We conclude that European ESG leaders’ portfolios are biased toward large cap and value stocks with robust operating profitability and against aggressive investments. As robustness tests, we examine Global ESG leaders’ index-based portfolios, producing the same results but with reduced importance in some loading factors like profitability and investment strategy. Furthermore, we deduced that European and Global ESG leaders’ portfolios tilt towards volatility and herding bias.

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“…Previous studies have attempted to answer the empirical question of the relationship between corporate sustainability performance and corporate nancial performance (CFP) (Erol et al, 2023;Fujii et al, 2013;Nollet et al, 2016;Shirasu and Kawakita, 2021;Wang et al, 2016). Most recently, studies have also expanded from correlations to causal inference studies.…”

Section: Introductionmentioning

confidence: 99%

Can nonfinancial disclosure (NFD) benefit companies? - Evidence from the 2016 Hong Kong “Comply or Explain” mandatory environmental, social, and governance (ESG) disclosure policy

Xu,

Kaneko,

Goto

2023

Preprint

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This empirical study investigates whether mandatory nonfinancial disclosure (NFD) impacts financial performance using the Hong Kong 2016 “Comply or Explain” mandatory ESG disclosure policy. We use a total of 4712 observations from balanced panel data obtained from combined sources: Refinitiv and manually collected databases from 2013 to 2020. We employ the difference-in-difference (DID) as an identification strategy to explore the average treatment effect on the treated (ATET) of mandatory ESG disclosure policy. The treatment group is dual-listed companies (A/H shares) from Hong Kong, and the control group is domestic-list-only companies (A shares) from Mainland China. The results suggest that a mandatory ESG disclosure policy positively affects corporate financial performance (Tobin’s Q). From heterogeneity analysis, we also find that mandatory disclosure varies across ownership status, economic development regions and industrial sectors. We find that Hong Kong’s 2016 "Comply or Explain" mandatory ESG disclosure policy positively impacts corporate financial performance. Our findings demonstrate the effectiveness of regulatory-driven nonfinancial information disclosure on corporate financial performance.

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ESG investing and the financial performance: a panel data analysis of developed REIT markets

Cited by 13 publications

References 53 publications

Analyzing Factors That Affect Korean B2B Companies’ Sustainable Performance

Analyzing Factors That Affect Korean B2B Companies’ Sustainable Performance

Volatility and Herding Bias on ESG Leaders’ Portfolios Performance

Can nonfinancial disclosure (NFD) benefit companies? - Evidence from the 2016 Hong Kong “Comply or Explain” mandatory environmental, social, and governance (ESG) disclosure policy

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