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Environmental, Social and Governance initiatives and wealth creation for firms: An empirical examination

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. pp. 1-20. ISSN 1099-1468 (In Press)

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Abstract

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.

Item Type: Article
Additional Information: ISI Journal Citation Reports © Ranking: 2018:286/363 (Economics)206/217 (Management)
Uncontrolled Keywords: Environmental, social, and governance (ESG) activities; CSR welfare initiatives; firm performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
Faculty/Division: Faculty of Industrial Management
Depositing User: Noorul Farina Arifin
Date Deposited: 09 Mar 2020 03:30
Last Modified: 09 Mar 2020 03:30
URI: http://umpir.ump.edu.my/id/eprint/28085
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