The impact of environmental, social and governance score on
shareholder wealth: A new dimension in investment philosophy

J 2023

The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy

PARIKH, Abhishek; Divya KUMARI; Maria JOHANN a Dušan MLADENOVIĆ

Základní údaje

Originální název

The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy

Autoři

PARIKH, Abhishek; Divya KUMARI; Maria JOHANN a Dušan MLADENOVIĆ

Vydání

Cleaner and Responsible Consumption, Amsterdam, Elsevier, 2023, 2666-7843

Další údaje

Jazyk

angličtina

Typ výsledku

Článek v odborném periodiku

Obor

50204 Business and management

Stát vydavatele

Nizozemské království

Utajení

není předmětem státního či obchodního tajemství

Odkazy

URL

Impakt faktor

Impact factor: 3.700

Označené pro přenos do RIV

Ano

Kód RIV

RIV/00216224:14560/23:00131473

Organizační jednotka

Ekonomicko-správní fakulta

Klíčová slova anglicky

ESG; Sustainable; investment; Shareholder wealth; Return; India

Příznaky

Mezinárodní význam, Recenzováno

Změněno: 7. 3. 2024 11:37, Mgr. Pavlína Kurková

Anotace

V originále

Recently, there has been significant research on the environmental, social, and governance (ESG) aspects of wealth generation. Managers have tried to attract investors for sustainable growth by pushing for ESG investments. This study attempts to determine the relationship between ESG scores on shareholders' wealth and define possible selection criteria for future investments. Notably, there are funds and investment avenues that are specifically designed for ESG themes, urging toward sustainable wealth creation. However, investors' focus remains on their returns and wealth creation. In recent years, reporting ESG scores has become standard practice for most rating agencies to report the financial health of companies. Thus, this study employs a linear regression model to analyze the impact of ESG scores on the equity returns of 225 Indian companies. The results show empirical evidence of the positive impact of the governance (G) factor on equity returns, while it reports the negative impact of the environmental (E) factor on equity returns. Moreover, the impact of the social (S) factor is found to be insignificant. Therefore, we conclude that financial motivations may be needed to trigger E− and S- factor practices by companies. It is important for companies to be very conscious of their governance practices to improve their shareholders’ wealth.

Přiložené soubory

1-s2.0-S2666784323000025-main__1_.pdf

Citovat

PARIKH, Abhishek; Divya KUMARI; Maria JOHANN a Dušan MLADENOVIĆ. The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy. Cleaner and Responsible Consumption. Amsterdam: Elsevier, 2023, roč. 8, č. 1, s. 1-7. ISSN 2666-7843. Dostupné z: https://doi.org/10.1016/j.clrc.2023.100101.

@article{2303603,
   author = {Parikh, Abhishek and Kumari, Divya and Johann, Maria and Mladenović, Dušan},
   article_location = {Amsterdam},
   article_number = {1},
   doi = {https://doi.org/10.1016/j.clrc.2023.100101},
   keywords = {ESG; Sustainable; investment; Shareholder wealth; Return; India},
   language = {eng},
   issn = {2666-7843},
   journal = {Cleaner and Responsible Consumption},
   title = {The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy},
   url = {https://pdf.sciencedirectassets.com/777794/1-s2.0-S2666784322X00053/1-s2.0-S2666784323000025/main.pdf?X-Amz-Security-Token=IQoJb3JpZ2luX2VjEDAaCXVzLWVhc3QtMSJGMEQCIFsT6LOVOeLoEGjyAyTqGmk0IWXZEGyXjB47co00%2BOChAiAq5tcp1buCU0NvaYC7Du4c7fC3dQ5M%2BKlsa3XV6k4},
   volume = {8},
   year = {2023}
}

TY  - JOUR
ID  - 2303603
AU  - Parikh, Abhishek - Kumari, Divya - Johann, Maria - Mladenović, Dušan
PY  - 2023
TI  - The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy
JF  - Cleaner and Responsible Consumption
VL  - 8
IS  - 1
SP  - 1-7
EP  - 1-7
PB  - Elsevier
SN  - 26667843
KW  - ESG
KW  - Sustainable
KW  - investment
KW  - Shareholder wealth
KW  - Return
KW  - India
UR  - https://pdf.sciencedirectassets.com/777794/1-s2.0-S2666784322X00053/1-s2.0-S2666784323000025/main.pdf?X-Amz-Security-Token=IQoJb3JpZ2luX2VjEDAaCXVzLWVhc3QtMSJGMEQCIFsT6LOVOeLoEGjyAyTqGmk0IWXZEGyXjB47co00%2BOChAiAq5tcp1buCU0NvaYC7Du4c7fC3dQ5M%2BKlsa3XV6k4
N2  - Recently, there has been significant research on the environmental, social, and governance (ESG) aspects of wealth generation. Managers have tried to attract investors for sustainable growth by pushing for ESG investments. This study attempts to determine the relationship between ESG scores on shareholders' wealth and define possible selection criteria for future investments. Notably, there are funds and investment avenues that are specifically designed for ESG themes, urging toward sustainable wealth creation. However, investors' focus remains on their returns and wealth creation. In recent years, reporting ESG scores has become standard practice for most rating agencies to report the financial health of companies. Thus, this study employs a linear regression model to analyze the impact of ESG scores on the equity returns of 225 Indian companies. The results show empirical evidence of the positive impact of the governance (G) factor on equity returns, while it reports the negative impact of the environmental (E) factor on equity returns. Moreover, the impact of the social (S) factor is found to be insignificant. Therefore, we conclude that financial motivations may be needed to trigger E− and S- factor practices by companies. It is important for companies to be very conscious of their governance practices to improve their shareholders’ wealth.
ER  -

PARIKH, Abhishek; Divya KUMARI; Maria JOHANN a Dušan MLADENOVI$\backslash$'C. The impact of environmental, social and governance score on shareholder wealth: A new dimension in investment philosophy. \textit{Cleaner and Responsible Consumption}. Amsterdam: Elsevier, 2023, roč.~8, č.~1, s.~1-7. ISSN~2666-7843. Dostupné z: https://doi.org/10.1016/j.clrc.2023.100101.

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