This paper investigates the association between environmental, social, and governance (ESG) disclosure and company profitability, as measured by return on assets (ROA). We first assess a method to indexing the ESG score of a large sample of U.S. listed companies based on MSCI ESG KLD STATS data from 2000 to 2016. The statistical model is run on 17,358 observations and studies the association of ROA and the three different dimensions of ESG score. Significant differences between industrial firms and financial intermediaries emerge. We find a significant and positive association between ESG and that the environmental awareness in banks is strongly related to profitability, providing implications for policy makers and policy takers.

Environmental, social, and governance and company profitability: Are financial intermediaries different? / Brogi, Marina; Lagasio, Valentina. - In: CORPORATE SOCIAL RESPONSIBILITY & ENVIRONMENTAL MANAGEMENT. - ISSN 1535-3958. - (2018), pp. 1-12. [10.1002/csr.1704]

Environmental, social, and governance and company profitability: Are financial intermediaries different?

Brogi, Marina;Lagasio, Valentina
2018

Abstract

This paper investigates the association between environmental, social, and governance (ESG) disclosure and company profitability, as measured by return on assets (ROA). We first assess a method to indexing the ESG score of a large sample of U.S. listed companies based on MSCI ESG KLD STATS data from 2000 to 2016. The statistical model is run on 17,358 observations and studies the association of ROA and the three different dimensions of ESG score. Significant differences between industrial firms and financial intermediaries emerge. We find a significant and positive association between ESG and that the environmental awareness in banks is strongly related to profitability, providing implications for policy makers and policy takers.
2018
banks; corporate governance; CSR; ESG; financial intermediaries; firm performance; Development3304 Education; Strategy and Management1409 Tourism; Leisure and Hospitality Management; Management; Monitoring; Policy and Law
01 Pubblicazione su rivista::01a Articolo in rivista
Environmental, social, and governance and company profitability: Are financial intermediaries different? / Brogi, Marina; Lagasio, Valentina. - In: CORPORATE SOCIAL RESPONSIBILITY & ENVIRONMENTAL MANAGEMENT. - ISSN 1535-3958. - (2018), pp. 1-12. [10.1002/csr.1704]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/1212618
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