Work

ESG Ratings and Stock Performance during the COVID-19 Crisis

Year: 2021

Type: article

Abstract: We investigate the association between Environmental, Social, and Governance (ESG) ratings and stock performance during the COVID-19 crisis. Although there is mixed evidence in the literature whether ESG is valuable in times of crisis, we find high ESG-rated European firms to be associated with higher abnormal returns and lower stock volatility. After decomposing ESG into its separate components, we find the social score to be the predominant driver of our results. Further, we argue that ESG is value-enhancing in low-trust countries, and in countries with poorer security regulations and where lower disclosure standards prevail.

Source: Sustainability

DOI: 10.3390/su13137133

Authors: Nils Engelhardt, Jens Ekkenga, Peter Posch

Institutions: TU Dortmund University, Justus-Liebig-Universität Gießen

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,977

Funders: Deutsche Forschungsgemeinschaft, Technische Universität Dortmund