Impact of ESG Factors on Firm Value in Korea
- 한국윤리경영학회
- 한국윤리경영학회 학술대회 발표논문집
- 2018년 하계학술대회 발표논문집
- 2018.08
- 77 - 101 (25 pages)
This paper examines the relations between environmental, social, and governance(ESG) practices and firm value using Korean Listed firms over the 2011-2014 periods. This paper hypothesizes that environmental, social, and corporate governance (ESG) practices have a positive effect on firm value and negative effect on firm risk. This paper also hypothesizes that environmental, social, and corporate governance(ESG) practices have a significant impact on firm’s credit rating. This research finds that total ESG score has a positive impact on firm value measured by Tobin’s Q. Furthermore, total ESG score has a strong negative impact on firm risk measured by abnormal stock return. In addition, this paper also shows that with high ESG score shows a better credit rating, supporting the close relation between ESG practices and cost of debt.
Ⅰ. Introduction
Ⅱ. Background and Hypothesis Development
Ⅲ. Research Design
Ⅳ. Empirical Results
Ⅴ. Conclusion