The Impact on European Stock Markets of Corporate Social Responsibility Alerts Dissemination and their Triggering Events

Chollet, Pierre; Sandwidi, Blaise W.

doi:10.4000/fcs.1799

Cited by 5 publications

(6 citation statements)

References 30 publications

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“…Therefore, institutions that are perceived to be failing to take ESG aspects into account in their business activities and that are associated with social or environmental controversies may face negative financial consequences as a result of changing market sentiment risks (European Central Bank, 2021). Scholars have argued that stakeholders' reaction is stronger when controversies or illegal behaviours are related to employees, the environment or violations of the society's rights (Chollet & Sandwidi, 2016).…”

Section: Esg Controversiesmentioning

confidence: 99%

ESG controversies and bank risk taking

Galletta

Mazzù

2022

Bus Strat Env

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This study investigates how environmental, social, and governance controversies affect bank risk taking. By estimating a dynamic panel data model from 2011 to 2020, we find evidence that banks with fewer ESG controversies take less risk. Banks with a lower number of ESG controversies show their compliance with the implementation of ESG strategies to reduce risk, as evidenced by lower risk-weighted assets and higher Z-scores. The present study supports the recent guidelines on climaterelated and environmental risks published by the Basel Committee on Banking Supervision and the European Central Bank. Therefore, the main results strengthen the need for the integration not only of social and governance risks but also of climaterelated and environmental risks in banks' risk management framework.

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Section: Esg Controversiesmentioning

confidence: 99%

ESG controversies and bank risk taking

Galletta

Mazzù

2022

Bus Strat Env

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“…Meanwhile, B. Cui and P. Docherty [27] and P. Chollet and B.W. Sandwidi [33] reveal that overreaction takes place. Nevertheless, all authors argue that the opportunity to receive abnormal returns opens up for investors when the controversy happens.…”

Section: The Impact Of Esg Controversies On Firm Valuementioning

confidence: 99%

“…According to P. Chollet, B.W. Sandwidi [33] and G. Serafeim, A. Yoon [34], another sort of heterogeneity is a type of negative event. G. Serafeim and A. Yoon [34] found that there is an investor reaction solely to material ESG issues, social capital, and no such reaction exists to human capital issues.…”

Section: The Impact Of Esg Controversies On Firm Valuementioning

confidence: 99%

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The Impact of ESG Controversies on Bank Value and Risk-taking

Староверова¹

2022

КФ

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ESG performance is one of the most important non-financial factors investors pay attention to when valuing a bank. Previous studies, devoted to bank ESG performance, rely solely on ESG ratings. The contribution of this paper to the existing literature is investigation of a new measure of ESG performance – ESG controversies. ESG controversies are covered in the media negative news that reflect a bank failure in ESG performance. The goal of this paper is to investigate the influence of negative ESG news on market value and stability of companies in a banking sector.A cross-country sample of 134 banks and data on 1,200 controversies from 2016 to 2020 are used in this study. Our results provide evidence that ESG controversies negatively affect bank value and have no impact on its stability. However, the effect on share prices is not unified: it is stronger for banks that are in the scope of investor attention, and this relation is observed for developed markets with high freedom of press exclusively. Moreover, investors take into consideration the reason of ESG controversy occurrence. They react strongly to negative ESG news, related to community and workforce.

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“…In view of all that has been mentioned so far, one may suppose that solving the immediate challenges and obstacles associated with the climate changes (Gore 2007(Gore , 2009a(Gore , 2009b(Gore , 2013, does not refer to the need of ensuring the premises of supporting the implementation and the existence of "green" and "sustainable finance", and more particularly, setting "out the building blocks for putting a well-functioning and integrated Capital Markets Union" (European Commission 2015, p. 6), at least, not in this current stage. However, in the age of sustainable development, the strong belief of reputed specialists is that ensuring financial stability, facilitating financial development, and enabling the existence of flexible business and financial models has the purpose of encouraging actions capable of supporting and enhancing "green" and "sustainable finance", which, in turn, will lead to diminishing the negative outcomes derived from the processes specific to climate change (Jeucken 2015;Sachs 2015;Boubaker et al 2019b;BenSaïda et al 2018;Chollet and Sandwidi 2016). What is more, the European Commission's members are willing to support "green" and "sustainable finance", with the clear intention to "support the pooling of private and EU resources in order to increase financing for infrastructure investments and sustainable growth" (European Commission 2015, p. 16), by taking into consideration the following crucial points:…”

mentioning

confidence: 99%

An Exploratory Study Based on a Questionnaire Concerning Green and Sustainable Finance, Corporate Social Responsibility, and Performance: Evidence from the Romanian Business Environment

Popescu

2019

JRFM

111

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Green and sustainable finance, corporate social responsibility and financial and non-financial performance are attracting widespread interest due to the challenging times that the business environment is currently facing. Moreover, green and sustainable finance, corporate social responsibility, and intellectual and human capital have become central issues in measuring organizations’ success, competitive advantage and influence on the marketplace. This scientific paper seeks to address the relationship between corporate social responsibility, intellectual capital and performance, providing valuable insights and relevant evidence from a Romanian business environment. The questionnaire method was used for the targeted research objectives, which referred to: (a) Romanian organizations and local community understanding of green and sustainable finance, corporate social responsibility and intellectual capital; (b) corporate social responsibility actions taken by Romanian organizations and the local community; (c) main drivers of corporate social responsibility and intellectual capital in Romanian organizations; and (d) ways to enhance financial and non-financial performance of Romanian organizations with the aid of corporate social responsibility and intellectual capital. The findings support the idea of a strong relationship between corporate social responsibility, intellectual capital and performance in the Romanian business environment. Our work shows that, broadly speaking, Romanian entities operate on a socially responsible level, being aware of the importance and the advantages brought by both corporate social responsibility and intellectual capital when it comes to enhancing profit, productivity and performance. Our results are highly encouraging and may be validated by a larger sample size.

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The Impact on European Stock Markets of Corporate Social Responsibility Alerts Dissemination and their Triggering Events

Cited by 5 publications

References 30 publications

ESG controversies and bank risk taking

ESG controversies and bank risk taking

The Impact of ESG Controversies on Bank Value and Risk-taking

An Exploratory Study Based on a Questionnaire Concerning Green and Sustainable Finance, Corporate Social Responsibility, and Performance: Evidence from the Romanian Business Environment

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