Change search
ReferencesLink to record
Permanent link

Direct link
Environmental, Social and Governance Aspects Impact on Financial Performance: An event study on ESG improvement
Jönköping University, Jönköping International Business School, JIBS, Business Administration. Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics.
2015 (English)Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

During the past decade, corporate transparency has become a fundamental value and strong signifier in today’s business environment. Today, companies must reveal more Environmental, Social and Governance (ESG) information about their operations than ever. This study investigates if asset managers can benefit from ESG information by incorporating it into the investment process. An event study is conducted on companies that improved their ESG performance and the financial results is evaluated post of the improvement. Three different time-perspectives are used, 1-year, 3-years and 5 years to see if the relationship is sensitive to changes in time. In sum, only the mid-term test give a statistical significant result, with indication of a negative impact from ESG improvements on financial performance. There is weak evidence that the financial performance may improve in the ultra-long run, but additional research needs to be done to confirm such hypothesis. I suggest that regardless of how the relationship between ESG and financial performance is, more integrated ESG models will be important for asset managers in the future. 

Place, publisher, year, edition, pages
2015. , 46 p.
Keyword [en]
ESG, Asset Manager, Sustainable Investment, Long-Term Investors, Event Study, Non-Parametric, Buy-and-Hold Abnormal Return
National Category
Business Administration
URN: urn:nbn:se:hj:diva-26495ISRN: JU-IHH-FÖA-2-20150071OAI: diva2:811368
Subject / course
IHH, Business Administration
Available from: 2015-06-15 Created: 2015-05-11 Last updated: 2015-06-15Bibliographically approved

Open Access in DiVA

fulltext(1842 kB)125 downloads
File information
File name FULLTEXT01.pdfFile size 1842 kBChecksum SHA-512
Type fulltextMimetype application/pdf

By organisation
JIBS, Business AdministrationJIBS, Economics, Finance and Statistics
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 125 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 360 hits
ReferencesLink to record
Permanent link

Direct link