ESG Valuation During Times of Economic Uncertainty
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School of Business |
Bachelor's thesis
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Authors
Date
2022
Department
Major/Subject
Mcode
Degree programme
Rahoitus
Language
en
Pages
30
Series
Abstract
This study examines the effects of economic uncertainty on ESG valuation. Specifically, it evaluates the impact of ESG scores on returns in the firm and portfolio-level analyses. It studies how the valuation of high ESG stocks is impacted by economic volatility and recessions. To research the topic, this thesis uses historical return and ESG score data from European listed companies and analyzes them in portfolios and using firm-specific characteristics. The theoretical analysis also includes reviewing existing literature on ESG valuation. The results of this thesis provide insight into the role ESG indicators can play in investment decisions in times of volatility. The study finds a positive relationship between ESG scores and firms’ abnormal returns during high volatility periods.Description
Thesis advisor
Shin, SeanKeywords
ESG, VIX, Recession, Sustainability, Europe, Economic uncertainty, Portfolio analysis