The Materiality Challenge of ESG Ratings
Research purpose. The ESG literature supports a positive correlation between a firm’s ESG performance and its financial performance; however, the details of this relationship are ambiguous, which has led to conflicting results in the literature. This article asserts that this ambiguity is largely re...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2022-12-01
|
| Series: | Economics and Culture |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/jec-2022-0019 |
| _version_ | 1797947611913650176 |
|---|---|
| author | Williams Zach |
| author_facet | Williams Zach |
| author_sort | Williams Zach |
| collection | DOAJ |
| description | Research purpose. The ESG literature supports a positive correlation between a firm’s ESG performance and its financial performance; however, the details of this relationship are ambiguous, which has led to conflicting results in the literature. This article asserts that this ambiguity is largely related to the fact that ESG studies rarely consider the important issue of materiality. This article is an expanded replication of analysis by Williams ---amp--- Apollonio (2022), a study that called for deeper analysis of both materiality and the causal link between ESG ratings and financial performance. |
| first_indexed | 2024-04-10T21:30:39Z |
| format | Article |
| id | doaj.art-804ce290093f475b829b45d9a546dc80 |
| institution | Directory Open Access Journal |
| issn | 2256-0173 |
| language | English |
| last_indexed | 2024-04-10T21:30:39Z |
| publishDate | 2022-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Economics and Culture |
| spelling | doaj.art-804ce290093f475b829b45d9a546dc802023-01-19T13:47:24ZengSciendoEconomics and Culture2256-01732022-12-011929710810.2478/jec-2022-0019The Materiality Challenge of ESG RatingsWilliams Zach0Mercy College, Dobbs Ferry, New York, USAResearch purpose. The ESG literature supports a positive correlation between a firm’s ESG performance and its financial performance; however, the details of this relationship are ambiguous, which has led to conflicting results in the literature. This article asserts that this ambiguity is largely related to the fact that ESG studies rarely consider the important issue of materiality. This article is an expanded replication of analysis by Williams ---amp--- Apollonio (2022), a study that called for deeper analysis of both materiality and the causal link between ESG ratings and financial performance.https://doi.org/10.2478/jec-2022-0019esg materialityabnormal returnsindustry classificationg11 |
| spellingShingle | Williams Zach The Materiality Challenge of ESG Ratings Economics and Culture esg materiality abnormal returns industry classification g11 |
| title | The Materiality Challenge of ESG Ratings |
| title_full | The Materiality Challenge of ESG Ratings |
| title_fullStr | The Materiality Challenge of ESG Ratings |
| title_full_unstemmed | The Materiality Challenge of ESG Ratings |
| title_short | The Materiality Challenge of ESG Ratings |
| title_sort | materiality challenge of esg ratings |
| topic | esg materiality abnormal returns industry classification g11 |
| url | https://doi.org/10.2478/jec-2022-0019 |
| work_keys_str_mv | AT williamszach thematerialitychallengeofesgratings AT williamszach materialitychallengeofesgratings |