The Effect of Corporate Social Responsibility and the Executive Compensation on Implicit Cost of Equity: Evidence from French ESG Data

Chouaibi, Yamina; Rossi, Matteo; Zouari, Ghazi

doi:10.3390/su132011510

Cited by 39 publications

(39 citation statements)

References 54 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…First, we used the time of COVID-19 as an alternative indicator of the independent variable and ordinary least square estimation, and second, we added two variables to the original regression models. We identified book value per share (BVPS), which has been relied upon in previous studies (e.g., Chouaibi et al 2021 ; Broadstock et al 2021 ), and total liabilities (TOTLIAB) and added them to the regression model as control variables; then, we re-estimate the random effects model.…”

Section: Resultsmentioning

confidence: 99%

ESG performance in the time of COVID-19 pandemic: cross-country evidence

Amosh

Khatib

2023

Environ Sci Pollut Res

View full text Add to dashboard Cite

The purpose of this paper is to compare the performance of environmental, social, and governance (ESG) in developing and developed countries prior to and during the COVID-19 pandemic; the study also seeks to reveal the impact of the COVID-19 on the performance of ESG during the pandemic period. Based on a large international panel dataset of 12,325 company-year observations covering 2016–2021, panel regression analysis examined the study hypotheses and achieved the study objectives. The findings indicate that companies have taken precautions against the threats of the COVID-19 pandemic by ensuring compliance with ESG performance to prove their ethical behavior during a crisis. Our findings call into question the notion that companies in developed countries outperform companies in developing countries in terms of ESG performance. As a result, companies in emerging markets outperform companies in developed markets regarding environmental performance, while developed markets focus on social performance. Besides, the ESG performance is positively and significantly affected by the COVID-19, which indicates that during crises, it is important for companies to comply with ethical behavior and the most acceptable in societies. Also, the pandemic has a positive impact on both environmental and social performance, while it has a negative impact on governance performance alone. A considerable body of the literature has addressed the effect of the COVID-19 pandemic on various aspects of a company’s financial and non-financial practices. However, limited effort was given to ESG performance. The current study fills this gap by evaluating the direct effect of the COVID-19 crisis on the ESG performance in developing and developed countries. It also provides insight into the ESG performance and corporate behavior and obligations.

show abstract

Section: Resultsmentioning

confidence: 99%

ESG performance in the time of COVID-19 pandemic: cross-country evidence

Amosh

Khatib

2023

Environ Sci Pollut Res

View full text Add to dashboard Cite

show abstract

“…Table 1 shows that after dividing by 100, the highest ESG score is 0.6411, the lowest ESG score is 0.0579, the average ESG score is 0.2149 and the standard deviation is 0.0733. This shows that there are listed companies' ESG performance differences [5].…”

Section: Measurement and Date Analysismentioning

confidence: 90%

The Relationship Between ESG Rating and the Cost of Equity Capital: Evidence from China

Rao¹

2023

BCPBM

View full text Add to dashboard Cite

With increasing market attention to corporate Environment, Social and Governance (ESG) practice, ESG Score plays an important part in a firm’s stock performance. Through regression analysis, this study aims to find out the relationship between ESG score and a firm’s cost of equity capital. The sample comprises 4365 effective samples covering 1035 Shanghai-Shenzhen A-share enterprises for the period spanning 2015 through 2020. The results show that there is a significant negative correlation between the ESG score and the firm's cost of equity capital. The analysis also shows that the G score in ESG score has the most significant impact on the company's cost of equity capital. For the robustness test, this study replaced the explained variables, lagged the explained variables by one stage and focused on the endogeneity study. The study found that the likelihood of a positive effect on ESG scores was small. The findings of this study provide evidence for previous literature and provide guidance for corporate governance.

show abstract

“…Henriksson et al (2018) showed, that better ESG score allows companies to obtain cheaper loans, higher credit rankings and lower cost of equity capital. On a sample of 154 French ESG companies in the years 2015-2020, Chouaibi et al (2021) showed that corporate social responsibility (CSR) activities lower the cost of equity capital, thus they are important to shareholders' financing and investment decisions. According to the results of research conducted by Raimo et al (2020) the increase of ESG disclosure reduces the cost of equity capital.…”

Section: Literature Reviewmentioning

confidence: 99%

Environmental, social, governance risk versus cooperation models between financial institutions and businesses. Sectoral approach and ESG risk analysis

Zioło

Bąk

Cheba

et al. 2023

Front. Environ. Sci.

View full text Add to dashboard Cite

Introduction: ESG risk and the business sector are essential in the process of adapting business models towards sustainability. The article aims to analyze ESG risk, taking into account these business sectors that are most affected by ESG risk, and to identify the relationship between ESG risk and cooperation models of financial institutions and companies (Anglo-Saxon/German-Japanese). The original research approach was based on including the financial system model in the analysis of ESG risk impact and the companies’ methods of achieving sustainable business models with external funding.Methods: The study is based on a two-stage analysis. First, fuzzy cognitive maps are used to evaluate the strength and direction of the relations between factors included in the companies’ sustainable business models according to the business sectors. At the second stage, a correspondence analysis was carried out to distinguish four groups of companies’ industries characterized by homogenous features related to the business sector, sustainable business model (SBM), and the way to transform to sustainability.Results: Methods of achieving sustainability in companies’ business models differ depending on business sectors. The “financial institution—company” cooperation model and recommendations were proposed.Discussion: Financial institutions play a crucial role in financing the transition into sustainable business models. However, their impact differs depending on the business sector and the model of the financial system (bank or market oriented). The study assumes that the financial system model determines the form of cooperation between financial institutions and companies in the process of financing costs towards sustainability.

show abstract

The Effect of Corporate Social Responsibility and the Executive Compensation on Implicit Cost of Equity: Evidence from French ESG Data

Cited by 39 publications

References 54 publications

ESG performance in the time of COVID-19 pandemic: cross-country evidence

ESG performance in the time of COVID-19 pandemic: cross-country evidence

The Relationship Between ESG Rating and the Cost of Equity Capital: Evidence from China

Environmental, social, governance risk versus cooperation models between financial institutions and businesses. Sectoral approach and ESG risk analysis

Contact Info

Product

Resources

About