ESG, liquidity, and stock returns

Luo, Di

doi:10.1016/j.intfin.2022.101526

Cited by 78 publications

(54 citation statements)

References 91 publications

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“…The mean value of ESG is 3.468, the minimum and maximum values are 1 and 8, respectively, and the standard deviation is 2.521, indicating that the ESG ratings of the companies in the sample differ significantly and the level of ESG disclosure needs to be improved. The mean value of SGR is 0.0399, and the minimum and maximum values are 0.0308 and 0.1568, respectively, which are similar to existing studies (Luo et al, 2022), indicating that there is great variability in the sustainability level of the sample companies; Individual differences were also observed in the sample for the main control variables, and the distribution of the control variable values were within a reasonable range. Overall, the sample was well differentiated.…”

Section: Descriptive Statisticsupporting

confidence: 85%

“…Compared with the ESG development process in foreign countries and Hong Kong, China, ESG construction in mainland China is relatively backward and still in the initial stage of development, mainly because mainland China adopts the voluntary principle for ESG report disclosure, while the Hong Kong Stock Exchange follows mandatory disclosure requirements (Luo et al, 2022). In recent years, stock exchanges and the Securities and Futures Commission have also made further regulations on corporate environmental, social as well as governance disclosure and proposed a core index system for measuring ESG performance of listed companies to further promote the development of ESG in China.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Environmental, social, governance disclosure and corporate sustainable growth: Evidence from China

Wang¹,

Li²,

Deng-feng³

et al. 2022

Front. Environ. Sci.

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The ultimate goal of business development is to achieve sustainable corporate growth and maximize shareholder wealth. Whether and how ESG disclosure affects sustainable growth needs to be further explored. Combining stakeholder theory and signaling theory, a panel data test based on 300 listed companies in Shanghai and Shenzhen in China finds that ESG disclosure can positively promote sustainable growth compared with companies that do not disclose ESG disclosure, and the higher the level of ESG disclosure, the greater the promotion effect on sustainable growth; and ESG disclosure further enhances sustainable growth by reducing financing constraints and enhancing human capital. In addition, the positive relationship between ESG disclosure and corporate sustainable growth is particularly pronounced for non- environmentally sensitive industries and when external environmental uncertainty intensifies. Our findings enrich the research related to ESG disclosure, provide motivation to motivate firms to consciously practice ESG disclosure from a sustainable growth perspective, and contribute to a more detailed understanding of the mechanisms of ESG disclosure and sustainable corporate growth.

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Section: Descriptive Statisticsupporting

confidence: 85%

Section: Introductionmentioning

confidence: 99%

Environmental, social, governance disclosure and corporate sustainable growth: Evidence from China

Wang¹,

Li²,

Deng-feng³

et al. 2022

Front. Environ. Sci.

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“…Recently, the impact of ESG on the market value and financial performance of corporates has been widely discussed. Under this topic, scholars have studied ESG's impact on stock pricing (Mǎnescu, 2011), corporate profitability (Brogi & Lagasio, 2018), stock value (Lo & Kwan, 2017; Luo, 2022), corporate financing decisions (Limkriangkrai et al, 2017, consumer satisfaction and corporate brand image (Koh et al, 2022). These studies affirm the broad and profound impact of ESG on corporates but also argue that a corporates' profitability and ESG performance are the determinants of whether ESG has a positive impact.…”

Section: Introductionmentioning

confidence: 99%

Environmental, social and governance, corporate social responsibility, and stock returns: What are the short‐ and long‐Run relationships?

Guo

Long

Wang

et al. 2022

Corp Soc Responsibility Env

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What are the relationships between corporate environmental, social, and governance (ESG), corporate social responsibility (CSR), and stock returns? Existing research has affirmed the impact of ESG or CSR on stock returns, but the discussion on the cointegration relationship among these three variables is still insufficient. Therefore, we use panel data of ESG ratings, CSR scores, and annual stock returns of 684 Chinese‐listed companies from 2011 to 2020 to verify the relationship between the variables through panel CADF and Westerlund tests. Meanwhile, we use PMG estimation to find that, in the long run, CSR significantly promotes the improvement of corporate stock returns, but ESG hurts the stock returns of most corporates. Further research proves that the impact of ESG on stock returns closely relates to corporate profitability. Our findings provide valuable policy implications for both developing and semi‐efficient market countries to help them improve their ESG and CSR performance.

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“…On the other hand, Meng, and Zhang (2022) found the disclosure of environmental information in China harms investor response in terms of cumulative stock return and this impact is even greater in companies with high pollution and institutional participation. Similarly, Luo (2022) showed United Kingdom companies with higher environmental, social, and governance engagement scores have lower stock returns.…”

Section: Relationship Between Corporate Social Responsibility and Ret...mentioning

confidence: 99%

“…In the international scenario, it was observed that most parts of the studies showed a positive relation between CSR and the return on share (Vergalli, & Poddi, 2009;Dhaliwal, Li, Tsang, & Yang, 2011;Becchetti, Ciciretti, Hasan, & Kobeissi, 2012;Xi, Chen, Li, & Xia, 2020;Roy, Rao, & Zhu, 2022;Boubaker, Liu, & Zhan, 2022). A few studies showed that CSR information negatively reflects the share price (Campos & Lemme, 2009;Meng & Zhang, 2022;Luo, 2022). In Brazilian investigations, the study of Boente, and Cavalcanti (2012) and Souza, Junior, Andrade e Fernandes (2019) are highlighted, which did not show any association between CSR practices and the return on share; the research by Salgado, Silva, and Araújo (2015) found a negative relation between the themes, and Dalmacio and Buoso (2016) and Hopata, Ribeiro, and Gerigs (2020) evidenced a positive relationship between CSR and return on share.…”

Section: Introductionmentioning

confidence: 99%

Retorno De Lás Aciones Y La Influencia De La Responsabilidad Social Corporativa

Soschinski

Rodrigues

2022

RGSA

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Purpose: This research aimed to analyze the influence of Corporate Social Responsibility (CSR) practices on the return on shares of Brazilian companies. Theoretical framework: Stock market investors analyze the behavior of companies when making decisions (Ball & Brown, 1968). Method/design/approach: It was used the Propensity Score Matching methodology to match companies engaged and not engaged in CSR, by criteria of similarity. Results and conclusion: The findings showed a positive relationship between CSR and the return on share, which demonstrates that the fact that companies engage in CSR, specifically in environmental-related actions, influences the higher market performance in terms of returns of shares. Research implications: It contributes in social terms, by motivating companies to engage in CSR, and in economic terms, by demonstrating that CSR has a positive impact on company value. Originality/value: This result contributes by showing that the environmental pillar of CSR positively impacts the capital market, which can be useful for companies when deciding on their investments in CSR and for shareholders because they understand that CSR creates value even in an emerging scenario like Brazil.

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ESG, liquidity, and stock returns

Cited by 78 publications

References 91 publications

Environmental, social, governance disclosure and corporate sustainable growth: Evidence from China

Environmental, social, governance disclosure and corporate sustainable growth: Evidence from China

Environmental, social and governance, corporate social responsibility, and stock returns: What are the short‐ and long‐Run relationships?

Retorno De Lás Aciones Y La Influencia De La Responsabilidad Social Corporativa

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