The impact of ESG ratings on U.S corporate resilience against the COVID-19 pandemic: An event-based study approach
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School of Business |
Bachelor's thesis
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Date
2024
Department
Major/Subject
Mcode
Degree programme
(Mikkeli) Bachelor’s Program in International Business
Language
en
Pages
63+2
Series
Abstract
Objectives: The main objective of this paper is to examine the impact of ESG ratings on corporate resilience against three different COVID-19 events. Another aim is to test the influence of ESG score on stock performance across different industries. Summary: The study uses event methodology to test its hypothesis. The companies involved are categorized based on their industry and ESG score. The top 5 companies with the highest ESG score and the top 5 lowest ESG scoring companies across 8 sectors are collected to construct 16 portfolios. The portfolio performance is analyzed by examining the stock market reactions during three COVID-19-related events, which extend to five days prior to and after the event date. Conclusion: The empirical result of this research indicates that ESG scores can have a positive impact on companies’ resilience during COVID-19. This is especially true for companies in the industry vulnerable to negative events. The study contributes to existing literature and provides evidence for the hypothesis that investors reward companies with high ESG performance.Description
Thesis advisor
Stepanov, RomanKeywords
ESG ratings, corporate resilience, COVID-19, event study