ESG actions, corporate discourse, and market assessment nexus: evidence from the oil and gas sector
This paper focuses on the oil and gas sector because of its direct exposure to the complete range of ESG challenges, as well as strong pressure to change business models due to the energy transition. We investigate the ESG scores of a sample of global companies in this sector and their relationship...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Vilnius Gediminas Technical University
2024-03-01
|
| Series: | Journal of Business Economics and Management |
| Subjects: | |
| Online Access: | https://aviation.vgtu.lt/index.php/JBEM/article/view/21070 |
| _version_ | 1797260708073701376 |
|---|---|
| author | Alexandra Horobet Vlad Bulai Magdalena Radulescu Lucian Belascu Dan Gabriel Dumitrescu |
| author_facet | Alexandra Horobet Vlad Bulai Magdalena Radulescu Lucian Belascu Dan Gabriel Dumitrescu |
| author_sort | Alexandra Horobet |
| collection | DOAJ |
| description |
This paper focuses on the oil and gas sector because of its direct exposure to the complete range of ESG challenges, as well as strong pressure to change business models due to the energy transition. We investigate the ESG scores of a sample of global companies in this sector and their relationship to stock market performance and to the ESG intensity of corporate reports. As an original contribution, we incorporate the intensity of corporate discourse on technology-related sustainability topics for the first time in the literature. Our findings reveal that investors examine both sustainability discourse and results when determining a company’s value and validate the role of ESG scores and rankings in providing investors with an accurate and meaningful assessment of companies’ sustainability actions. Moreover, companies’ disclosure of their sustainable actions and technological developments related to sustainability is positively related to stock returns. This implies that a focus on sustainable practices and constant communication with investors might result in higher market performance. Furthermore, encouraging companies, particularly those in sectors and industries sensitive to ESG factors, to invest in ESG initiatives, is accompanied by improved performance, which makes them more attractive and better positioned to attract financing.
|
| first_indexed | 2024-04-24T23:29:37Z |
| format | Article |
| id | doaj.art-c9f9673a3a94442da59be9f6b53c0c64 |
| institution | Directory Open Access Journal |
| issn | 1611-1699 2029-4433 |
| language | English |
| last_indexed | 2024-04-24T23:29:37Z |
| publishDate | 2024-03-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Journal of Business Economics and Management |
| spelling | doaj.art-c9f9673a3a94442da59be9f6b53c0c642024-03-15T16:24:37ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332024-03-0125110.3846/jbem.2024.21070ESG actions, corporate discourse, and market assessment nexus: evidence from the oil and gas sectorAlexandra Horobet0Vlad Bulai1Magdalena Radulescu2Lucian Belascu3Dan Gabriel Dumitrescu4Department of International Business and Economics, Bucharest University of Economic Studies, Bucharest, RomaniaDepartment of International Business and Economics, Bucharest University of Economic Studies, Bucharest, RomaniaDepartment of Finance, Accounting and Economics, University of Pitesti, Pitesti, Romania; Institute of Doctoral and Post-Doctoral Studies, University Lucian Blaga of Sibiu, Sibiu, RomaniaDepartment of Management, Marketing and Business Administration, “Lucian Blaga” University of Sibiu, Sibiu, RomaniaDepartment of International Business and Economics, Bucharest University of Economic Studies, Bucharest, Romania This paper focuses on the oil and gas sector because of its direct exposure to the complete range of ESG challenges, as well as strong pressure to change business models due to the energy transition. We investigate the ESG scores of a sample of global companies in this sector and their relationship to stock market performance and to the ESG intensity of corporate reports. As an original contribution, we incorporate the intensity of corporate discourse on technology-related sustainability topics for the first time in the literature. Our findings reveal that investors examine both sustainability discourse and results when determining a company’s value and validate the role of ESG scores and rankings in providing investors with an accurate and meaningful assessment of companies’ sustainability actions. Moreover, companies’ disclosure of their sustainable actions and technological developments related to sustainability is positively related to stock returns. This implies that a focus on sustainable practices and constant communication with investors might result in higher market performance. Furthermore, encouraging companies, particularly those in sectors and industries sensitive to ESG factors, to invest in ESG initiatives, is accompanied by improved performance, which makes them more attractive and better positioned to attract financing. https://aviation.vgtu.lt/index.php/JBEM/article/view/21070ESG scorescorporate discoursesustainabilitytechnologycorporate performancestock returns |
| spellingShingle | Alexandra Horobet Vlad Bulai Magdalena Radulescu Lucian Belascu Dan Gabriel Dumitrescu ESG actions, corporate discourse, and market assessment nexus: evidence from the oil and gas sector Journal of Business Economics and Management ESG scores corporate discourse sustainability technology corporate performance stock returns |
| title | ESG actions, corporate discourse, and market assessment nexus: evidence from the oil and gas sector |
| title_full | ESG actions, corporate discourse, and market assessment nexus: evidence from the oil and gas sector |
| title_fullStr | ESG actions, corporate discourse, and market assessment nexus: evidence from the oil and gas sector |
| title_full_unstemmed | ESG actions, corporate discourse, and market assessment nexus: evidence from the oil and gas sector |
| title_short | ESG actions, corporate discourse, and market assessment nexus: evidence from the oil and gas sector |
| title_sort | esg actions corporate discourse and market assessment nexus evidence from the oil and gas sector |
| topic | ESG scores corporate discourse sustainability technology corporate performance stock returns |
| url | https://aviation.vgtu.lt/index.php/JBEM/article/view/21070 |
| work_keys_str_mv | AT alexandrahorobet esgactionscorporatediscourseandmarketassessmentnexusevidencefromtheoilandgassector AT vladbulai esgactionscorporatediscourseandmarketassessmentnexusevidencefromtheoilandgassector AT magdalenaradulescu esgactionscorporatediscourseandmarketassessmentnexusevidencefromtheoilandgassector AT lucianbelascu esgactionscorporatediscourseandmarketassessmentnexusevidencefromtheoilandgassector AT dangabrieldumitrescu esgactionscorporatediscourseandmarketassessmentnexusevidencefromtheoilandgassector |