All you need is G(overnance): Sustainable Finance Following Ambrogio Lorenzetti's Frescoes

Costanza Consolandi, Giovanni Ferri and Andrea Roncella

No 01-2022, SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro"

Abstract: This paper takes at firm level the inspiration of the Allegory of the Good and Bad Government, the 14th century series of frescoes by Ambrogio Lorenzetti. Namely, we investigate whether a good corporate governance stabilizes financial performance and whether such superior governance improves ‘ESG (Environmental, Social, Governance) resilience’ against controversies related to sustainability issues. Using a large sample of European listed firms from 2006 to 2019, we find that a good governance is the key factor not only in getting ESG controversies managed, therefore increasing firm sustainability resilience, but also in reducing equity volatility, therefore stabilizing firm financial performance.

Keywords: Corporate governance; financial performance; ESG resilience (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Pages: 277
Date: 2022-07, Revised 2022-07
New Economics Papers: this item is included in nep-bec, nep-cfn and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.seriesworkingpapers.it/RePEc/bai/series/SERIES_WP_01-2022.pdf (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:bai:series:series_wp_01-2022

Access Statistics for this paper

More papers in SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro" Largo Abbazia S. Scolastica, 53 - 70124 - Bari - ITALY. Contact information at EDIRC.
Bibliographic data for series maintained by Annalisa Vinella ().