How bad is your company? Measuring corporate wrongdoing beyond the magic of ESG metrics

Davide Fiaschi, Elisa Giuliani, Federica Nieri and Nicola Salvati

Business Horizons, 2020, vol. 63, issue 3, 287-299

Abstract: Most attempts to measure corporate wrongdoing rely on data and indices sold by environmental, social, and governance (ESG) data providers. Developed for investors and market players, ESG data have been widely used in academia, but so far, little research has been conducted to assess and overcome the limitations of ESG indices. In this article, we take a first step in this direction and propose using an M-quantile regression approach to develop an index of corporate wrongdoing, understood as firms' involvement in controversies over universal human rights. We apply our proposed methodology to a novel and unique hand-collected dataset of 380 large publicly-listed firms from both advanced and emerging economies, covering the period 2003–2012. We discuss the importance of these indices for managers and practitioners.

Keywords: Corporate wrongdoing; Business ethics; Business and human rights; M-quantile regression; ESG data (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0007681319301272
Full text for ScienceDirect subscribers only

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:eee:bushor:v:63:y:2020:i:3:p:287-299

DOI: 10.1016/j.bushor.2019.09.004

Access Statistics for this article

Business Horizons is currently edited by C. M. Dalton

More articles in Business Horizons from Elsevier
Bibliographic data for series maintained by Catherine Liu ().