Does ESG Disclosure Transparency Mitigate the COVID-19 Pandemic Shock? An Empirical Analysis of Listed Firms in the UK
Thi Hong Van Hoang,
Linh Pham,
Amine Lahiani and
Elysé A. Segbotangni
Journal of Innovation Economics, 2023, vol. N° 41, issue 2, 75-106
Abstract:
This paper examines whether the ESG reporting transparency of listed firms in the UK can play a role in mitigating the impact of the COVID-19 pandemic. We investigate 350 UK firms in the FTSE350 index from 2016 to 2021 with daily data on stock performance and annual data on financial performance. The empirical results show that firms with a high ESG disclosure score have a lower volatility of stock performance during the COVID-19 pandemic. For these firms, the negative relationship between stock performance, as well as financial performance, and their main driving factors, is lower during the COVID-19 pandemic. Among these factors, we identify the lockdown announcement, quantitative easing announcement, and the intensity of news media coverage of the company. These results tend to indicate that the quantity of ESG data reported by firms can contribute to mitigating the impact of the COVID-19 pandemic on stock performance volatility and financial performance. JEL Code: G3
Keywords: ESG Disclosure; COVID-19 Pandemic; Stock Performance; Financial Performance; UK FTSE350 (search for similar items in EconPapers)
JEL-codes: G3 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=JIE_PR1_0131 (application/pdf)
http://www.cairn.info/revue-journal-of-innovation-economics-2023-2-page-75.htm (text/html)
free
Related works:
Working Paper: Does ESG Disclosure Transparency Mitigate the COVID-19 Pandemic Shock? An Empirical Analysis of Listed Firms in the UK (2021)
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:cai:jiedbu:jie_pr1_0131
Access Statistics for this article
More articles in Journal of Innovation Economics from De Boeck Université
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().