The effect of environmental, social and governance risks

Tarik Dogru, Erdinc Akyildirim, Oguzhan Cepni, Ozgur Ozdemir, Abhinav Sharma and Muhammed Hasan Yilmaz

Annals of Tourism Research, 2022, vol. 95, issue C

Abstract: This study examines the effect of environmental, social and governance risks on firm value. We analyze the extent to which environmental, social and governance related news affect tourism firms' abnormal returns using event study methodology. The results show that environmental, social and governance related news releases do not significantly affect firm value in the short-term. We further investigate the effect of environmental, social and governance risks on the value of tourism firms during the recent pandemic utilizing difference-in-differences analysis. The results provide robust evidence that sustainable business practices provide higher resilience to pandemic-like external shocks. Also, the presence of a sustainability committee mitigates the adverse effects of environmental, social and governance risks on firm value. Theoretical and practical implications are discussed.

Keywords: Event study methodology; Environmental; Social; Governance; Firm value; COVID-19 pandemic (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:anture:v:95:y:2022:i:c:s0160738322000834

DOI: 10.1016/j.annals.2022.103432

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