The crossroads of ESG and religious screening on firm risk

M. Kabir Hassan, Laura Chiaramonte, Alberto Dreassi, Andrea Paltrinieri and Stefano Piserà

Research in International Business and Finance, 2021, vol. 58, issue C

Abstract: Using a large and extended global dataset of non-financial firms (4624 listed entities from 2002 to 2018), we provide the first empirical evidence on how ESG and Sharia screenings interact and influence market risks. We link two contrasting literature streams: the risk reduction role that the stakeholder theory attributes to ESG scores, and the opposite effect for Sharia-compliance anticipated by the portfolio and agency theories.

Keywords: Environmental Social Governance (ESG) scores; Sustainability practices; Sharia-compliance screening; Islamic corporate finance; Market risks (search for similar items in EconPapers)
JEL-codes: G32 L21 M14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:58:y:2021:i:c:s0275531921001215

DOI: 10.1016/j.ribaf.2021.101500

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