Environmental, social and governance initiatives and wealth creation for firms: An empirical examination
This study examines the effect of environmental, social, and governance (ESG) activities on firm performance of 4,887 global companies. Mean difference test shows that firms with a high level of ESG activities are different from their low‐ESG counterparts. The two‐stage least square results suggest...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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John Wiley and Sons Ltd
2020
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| Online Access: | http://umpir.ump.edu.my/id/eprint/28113/1/Environmental%2C%20social%20and%20governance%20initiatives%20and%20wealth%20creation%20.pdf |
| _version_ | 1796994018649833472 |
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| author | Bhaskaran, Rajesh Kumar Irene, Wei Kiong Ting Sukumaran, Sujit K. Sumod, Saraswathy Divakaran |
| author_facet | Bhaskaran, Rajesh Kumar Irene, Wei Kiong Ting Sukumaran, Sujit K. Sumod, Saraswathy Divakaran |
| author_sort | Bhaskaran, Rajesh Kumar |
| collection | UMP |
| description | This study examines the effect of environmental, social, and governance (ESG) activities on firm performance of 4,887 global companies. Mean difference test shows that firms with a high level of ESG activities are different from their low‐ESG counterparts. The two‐stage least square results suggest that ESG activities on (a) the welfare for internal stakeholders and best corporate governance practices are beneficial for firm performance and (b) antitakeover mechanisms (pollution control) adopted by firms are negatively (positively) valued by market players. Overall, this is the first study to examine the effects of ESG on the market‐based and accounting‐based performance of global firms. |
| first_indexed | 2024-03-06T12:41:51Z |
| format | Article |
| id | UMPir28113 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-03-06T12:41:51Z |
| publishDate | 2020 |
| publisher | John Wiley and Sons Ltd |
| record_format | dspace |
| spelling | UMPir281132021-01-19T06:57:21Z http://umpir.ump.edu.my/id/eprint/28113/ Environmental, social and governance initiatives and wealth creation for firms: An empirical examination Bhaskaran, Rajesh Kumar Irene, Wei Kiong Ting Sukumaran, Sujit K. Sumod, Saraswathy Divakaran HF Commerce HG Finance This study examines the effect of environmental, social, and governance (ESG) activities on firm performance of 4,887 global companies. Mean difference test shows that firms with a high level of ESG activities are different from their low‐ESG counterparts. The two‐stage least square results suggest that ESG activities on (a) the welfare for internal stakeholders and best corporate governance practices are beneficial for firm performance and (b) antitakeover mechanisms (pollution control) adopted by firms are negatively (positively) valued by market players. Overall, this is the first study to examine the effects of ESG on the market‐based and accounting‐based performance of global firms. John Wiley and Sons Ltd 2020-01-20 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/28113/1/Environmental%2C%20social%20and%20governance%20initiatives%20and%20wealth%20creation%20.pdf Bhaskaran, Rajesh Kumar and Irene, Wei Kiong Ting and Sukumaran, Sujit K. and Sumod, Saraswathy Divakaran (2020) Environmental, social and governance initiatives and wealth creation for firms: An empirical examination. Managerial and Decision Economics, 41 (5). pp. 710-729. ISSN 0143-6570. (Published) https://doi.org/10.1002/mde.3131 https://doi.org/10.1002/mde.3131 |
| spellingShingle | HF Commerce HG Finance Bhaskaran, Rajesh Kumar Irene, Wei Kiong Ting Sukumaran, Sujit K. Sumod, Saraswathy Divakaran Environmental, social and governance initiatives and wealth creation for firms: An empirical examination |
| title | Environmental, social and governance initiatives and wealth creation for firms: An empirical examination |
| title_full | Environmental, social and governance initiatives and wealth creation for firms: An empirical examination |
| title_fullStr | Environmental, social and governance initiatives and wealth creation for firms: An empirical examination |
| title_full_unstemmed | Environmental, social and governance initiatives and wealth creation for firms: An empirical examination |
| title_short | Environmental, social and governance initiatives and wealth creation for firms: An empirical examination |
| title_sort | environmental social and governance initiatives and wealth creation for firms an empirical examination |
| topic | HF Commerce HG Finance |
| url | http://umpir.ump.edu.my/id/eprint/28113/1/Environmental%2C%20social%20and%20governance%20initiatives%20and%20wealth%20creation%20.pdf |
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