The fundamental effects of ESG disclosure quality in boosting the growth of ESG investing

Wen, Hui; Gao, Jijun; Yu, Li; Ho, Ken C.

doi:10.1016/j.intfin.2022.101655

Cited by 47 publications

(36 citation statements)

References 45 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…These findings enrich the relevant research on ESG influencing factors. At present, the literature has studied the economic consequences of ESG from various aspects, and believes that ESG can resist downside risks (Wen et al, 2022), restrain managers’ misconduct (He et al, 2022), and improve corporate financial performance (Z. Chen & Xie, 2022; Friede et al, 2015), improve corporate value (B.…”

Section: Discussionmentioning

confidence: 99%

Digital Transformation Empowers ESG Performance in the Manufacturing Industry: From ESG to DESG

Wang,

Hong,

Long

2023

SAGE Open

View full text Add to dashboard Cite

Digital transformation (DT) is a long-term strategy for economic sustainability, particularly for manufacturing-oriented economies. This study proposes a digital ESG (DESG) theoretical framework to investigate how DT empowers ESG performance in the manufacturing industry. Using Python, we collected data from Chinese manufacturing firms from 2009 to 2020. This study used the ordinary least squares method to examine the relationships among DT, ESG performance, and manufacturing ESG heterogeneity. The results suggest that big companies and growing firms pay more attention to their ESG performance than others and that state-owned enterprises are keen on ESG performance but underperform. Additionally, DT may contribute to manufacturing ESG performance in general; labor-intensive and non-state-owned enterprises benefit more from DT than their counterparts; and manufacturers in economically developed regions show more significant ESG performance thanks to DT. These findings support the use of a DESG theoretical framework in the manufacturing industry whereby digital technologies facilitate business production and improve the business profits of manufacturing firms, so that manufacturers have sufficient profits to conduct ESG investments for sustainable development in a virtuous cycle. JEL Classification: O32, O44, Q56

show abstract

Section: Discussionmentioning

confidence: 99%

Digital Transformation Empowers ESG Performance in the Manufacturing Industry: From ESG to DESG

Wang,

Hong,

Long

2023

SAGE Open

View full text Add to dashboard Cite

show abstract

“…Capelle-Blancard and Petit (2019) studied the stock market's reaction to news about ESG and showed that negative events could reduce market capitalization by 0.1%. According to Wen et al (2022), the quality of ESG information disclosure is a crucial factor in promoting the growth of ESG investments. Schiemann and Tietmeyer (2022)…”

Section: Concept Of Esgmentioning

confidence: 99%

“…Capelle‐Blancard and Petit (2019) studied the stock market's reaction to news about ESG and showed that negative events could reduce market capitalization by 0.1%. According to Wen et al (2022), the quality of ESG information disclosure is a crucial factor in promoting the growth of ESG investments. Schiemann and Tietmeyer (2022) further explored information about ESG disputes and ESG information disclosure, analyst forecast accuracy, displaying that ESG info disclosure can be impactful to step up the correlation between ESG disputes and predicting error.…”

Section: Theories and Literature Reviewmentioning

confidence: 99%

Role of environmental, social, and governance rating data in predicting financial risk and risk management

Liu,

Ge,

Wang

2023

Corp Soc Responsibility Env

View full text Add to dashboard Cite

Traditional industrial enterprises are primarily high pollution enterprises and high energy consumption. The achievement of the “dual carbon” motive in Chinese economic activities and environmental protection plays a chief role incorporating the environmental, social, and governance (ESG) into the risk management system of industrial enterprises. However, the industrial enterprises participating in ESG rating account for 46.97% of the listed enterprises, and the industrial enterprises that pay attention to ESG information disclosure account for 35.77% of the listed enterprises. Is ESG rating essential for the enhancement of industrial enterprises? Based on the transformation and upgrading of industrial enterprises, this research investigates how the ESG rating and ESG information disclosure affect the financial risk of industrial enterprises in China. The findings suggest that: (1) In China for industrial enterprise ESG plays an essential role which results in decrease in financial problems of industrial enterprise. (2) ESG is influential on monetary risk of industrial enterprise, the quality of enterprise ESG information disclosure plays an important intermediary role. (3) The lagging of ESG rating by one period is significantly positive related to the financial risk of industrial enterprises, and the financial risk prediction of industrial enterprises can be effectively indicated by the ESG rating data, which exhibits a stronger correlation coefficient than the existing rating system.

show abstract

“…Many scholars have studied the relationship between ESG investment and the sustainable development of enterprises and confirmed that the improvement of enterprises’ operating efficiency depends on their ESG performance [ 2 , 3 , 4 , 5 ]. After decades of research and development, ESG investment has become the mainstream of investment activities in the global capital market [ 6 , 7 ].…”

Section: Introductionmentioning

confidence: 99%

ESG Investment Scale Allocation of China’s Power Grid Company Using System Dynamics Simulation Modeling

Bi-rong

Wang

2023

IJERPH

View full text Add to dashboard Cite

In recent years, with the global recognition of the concept of sustainable development, the international market attaches great importance to the Environment, Society, and Governance (ESG) investment performance of enterprises. The “carbon peaking and carbon neutrality” goal puts forward requirements for Chinese enterprises to carry out ESG investment. As a large state-owned enterprise in China, power grid companies need to take the lead in ESG investment. Based on the System Dynamics (SD) theory, this paper establishes the simulation model of ESG-responsible investment of power grid companies, including the environmental investment sub-module, social investment sub-module, and governance investment sub-module. Taking a provincial Power Grid Company as an example, the numerical simulation of ESG investment of power grid companies is carried out. The actual input-output efficiency of ESG investment of power grid companies is reflected through the mapping relationship between key indicators and investment amount, and the ESG investment scale and investment weight of the Power Company in the coming years are predicted. Compared with the traditional static analysis method, this model can provide a theoretical basis for power grid companies to carry out ESG investment decisions.

show abstract

The fundamental effects of ESG disclosure quality in boosting the growth of ESG investing

Cited by 47 publications

References 45 publications

Digital Transformation Empowers ESG Performance in the Manufacturing Industry: From ESG to DESG

Digital Transformation Empowers ESG Performance in the Manufacturing Industry: From ESG to DESG

Role of environmental, social, and governance rating data in predicting financial risk and risk management

ESG Investment Scale Allocation of China’s Power Grid Company Using System Dynamics Simulation Modeling

Contact Info

Product

Resources

About