For whom does it pay to be a moral capitalist? Sustainability of corporate financial performance of ESG investment

Gubareva, Mariya; Umar, Zaghum; Соколова, Татяна; Antonyuk, Valentina

doi:10.1371/journal.pone.0285027

Cited by 8 publications

(2 citation statements)

References 44 publications

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“…The potential effect of SPP of PPP projects on corporate ESG performance may be more pressing for study given the magnitude of PPP projects and their social, environmental, economic and political significance in an economy. Last but not least, relevant studies could also be conducted in different countries, especially between developing and developed countries, given that they have assumed common but differentiated emphasis on the ESG evaluation system [ 88 ].…”

Section: Discussion Conclusion Implication and Future Researchmentioning

confidence: 99%

The impact of sustainable public procurement on corporate ESG performance—The Chinese evidence

Li,

Cao

2023

PLoS ONE

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Public procurement is an important bridge between public demand and market supply and may affect corporate behavior. However, in the advocacy of sustainable development, the extant research has rarely combined sustainable public procurement (SPP) with corporate ESG performance, to explore whether governments have contributed to the development of sustainable corporate performance through their sustainable procurement activities. This paper fills in the gap by matching the actual implementation of SPP of 42,369 projects in China over 2015~2020 with 20,125 corporate ESG performance data, to analyze the relationship between SPP implementation and corporate ESG performance. The results show that the implementation of SPP has a significant positive impact on corporate ESG performance. Further heterogeneity analysis reveals that the impact is stronger in China’s eastern and central regions than in other regions, and corporates at a mature stage are more likely to follow the government sustainable behavior. In addition, the implementation of SPP has a long-term effect on corporate ESG performance. The above findings have important policy implications: firstly, there is a better role for government to play as the “invisible hand”, to participate in the market economy; Specifically, SPP policy should be added to government policy tool box to improve corporate ESG performance in addition to disclosure requirement, and the SPP policy employed should in particular attend to the “missing sectors” of sustainability in SPP for the good of corporate ESG; secondly, the government should implement differentiated policies tailored to the region’s economic development conditions and corporate development characteristics; thirdly, a long-term evaluation mechanism should be established so that the government can play a more long-term demonstration and leading role.

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Section: Discussion Conclusion Implication and Future Researchmentioning

confidence: 99%

The impact of sustainable public procurement on corporate ESG performance—The Chinese evidence

Li,

Cao

2023

PLoS ONE

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“…Studies have also shown an exciting point: the return on ESG-related investment is correlated with the stability of society and the economy. Studies show that the higher the degree of stableness of the society and economy investors, the lower the degree of return from the ESG-related investment they would expect [11,12]. Studies are mainly based on the effect of the COVID-19 pandemic, assuming societies and economies are unstable during the pandemic, which also implies that the current ESGrelated investment will have less expected return.…”

Section: Literature Reviewmentioning

confidence: 99%

Unravelling the ESG Conundrum: Using Regression Analysis to Assess the True Performance Reflected by ESG

Chen

2024

HBEM

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This study mainly focuses on the financial performance of specific firms’ stocks in relation to ESG performance. Economic performance is represented by its stock value and other financial standards, including return on asset (ROA). The ESG performance is represented by ESG scores from Eikon Refinitiv. A linear regression analysis was done on the database to explore their correlation, including all the S&P500 stocks from 126 industries. The statistical evidence shows a negative, weak relationship between the return on assets and ESG performance with the control variable of the natural log of net assets. Further analysis focuses on the individual’s decision-making regarding investing. A linear regression testing the correlation of return rates based on different periods and ESG performance is done. The results show little relationship between the short-term return and ESG performance. This study implies that maintaining high ESG performance may result in higher costs, addressing the problem of whether individuals should care about the firm’s ESG performance when investing their money in the stock market. Real investment situations can be more complex and more challenging to determine. Therefore, the result of this study can serve as a reference for individual investors.

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Economic policy uncertainty, geopolitical risk, market sentiment, and regional stocks: asymmetric analyses of the EU sectors

Bossman,

Gubareva,

Teplova

2023

Eurasian Econ Rev

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The purpose of this study is to investigate the asymmetric effects of economic policy uncertainty (EPU), geopolitical risk (GPR), and market sentiment (VIX) on European Union (EU) stocks by sectors of economic activity. The design and methodological approach of our research are rooted in parametric and nonparametric quantile-based techniques. We employ monthly data covering eleven sectors of economic activity in addition to GPR, Global EPU, European Union EPU, United States EPU, and VIX. Our dataset covers the period between February 2013 and September 2022. Our findings show a generally low predictive power of the considered EPU measures on the stock returns of the EU sectors. Notwithstanding, the analysis reveals that EPU from the EU has the highest predictive ability on the EU sectoral stock returns while EPU from the US has no significant predictive ability on the stock returns from the EU. Our findings also highlight the asymmetric effects of various EPUs on EU stocks. Moreover, certain sectoral exposure to EU stocks, found to serve just as diversifiers in normal market conditions, could become a hedge and safe-haven against GPR in extreme economic conditions. Our findings also highlight the role of the VIX as a good gauge to hedge against the downside risks of the EU stocks. The originality of our work is two-fold. First, we extend the study of how global factors influence the EU stock market to the most recent period including the Russia–Ukraine conflict. Second, we perform this study on a sectoral basis. Therefore, the value of our findings is that they provide notable implications for market regulation and portfolio management.

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For whom does it pay to be a moral capitalist? Sustainability of corporate financial performance of ESG investment

Cited by 8 publications

References 44 publications

The impact of sustainable public procurement on corporate ESG performance—The Chinese evidence

The impact of sustainable public procurement on corporate ESG performance—The Chinese evidence

Unravelling the ESG Conundrum: Using Regression Analysis to Assess the True Performance Reflected by ESG

Economic policy uncertainty, geopolitical risk, market sentiment, and regional stocks: asymmetric analyses of the EU sectors

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