Subcategories of ESG controversies and firm value

Cédric Faure (), Emmanuelle Nys and Amine Tarazi
Additional contact information
Cédric Faure: UNILIM - Université de Limoges, LAPE - Laboratoire d'Analyse et de Prospective Economique - GIO - Gouvernance des Institutions et des Organisations - UNILIM - Université de Limoges

Working Papers from HAL

Abstract: To clarify the literature's conflicting findings on the impact of Environmental, Social, and Governance (ESG) controversies on firm value, this paper examines subcategory impacts within ESG pillars. We take advantage of a novel dataset to build cross-industry comparable quarterly subcategory scores. Aggregating them at different levels, our analysis of U.S. firms reveals significant impacts of controversies at both overall and sub-pillar levels, that are not systematically reduced by a higher initial ESG commitment. Conflicting subcategory effects within the same pillar explain the lack of significant pillar-level impact. This highlights the need to differentiate sub-pillar component effects to avoid premature conclusions.

Keywords: Environmental Social and Governance activities; ESG controversies; Firm value (search for similar items in EconPapers)
Date: 2024-07-20
Note: View the original document on HAL open archive server: https://hal.science/hal-04654818v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-04654818v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-04654818

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().