{"title":"Voluntary ESG evaluation and default risk","authors":"Li-Hsun Wang Li-Hsun Wang","doi":"10.53106/270308882022101501002","DOIUrl":null,"url":null,"abstract":"\n ESG is essential to companies and only few Taiwanese firms have ESG rating record evaluated by independent third party. This study examines whether these going ahead firms associate with lower default risk. We obtain 66 Taiwanese samples that voluntarily evaluated by Morgan Stanley Capital International (MSCI) in the period of 2017 to 2021 and find they have lower industry adjusted default risk. Among them, the higher ESG rating firms have lower default risk than others with lower rating record, consisting with the finding of Li et al. (2022). Interestingly, such superiority remains no matter their ESG rating is improved or worsened in next year. It is possible that firms who voluntarily take ESG evaluation conveying they are more information transparency and have higher intention on regulatory compliance than competitors. This study suggests policymakers to consider a mandatory ESG evaluation and disclosure results freely to public for the purpose of shareholder protection.\n \n","PeriodicalId":421870,"journal":{"name":"青年企業管理評論","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2022-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"青年企業管理評論","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.53106/270308882022101501002","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
ESG is essential to companies and only few Taiwanese firms have ESG rating record evaluated by independent third party. This study examines whether these going ahead firms associate with lower default risk. We obtain 66 Taiwanese samples that voluntarily evaluated by Morgan Stanley Capital International (MSCI) in the period of 2017 to 2021 and find they have lower industry adjusted default risk. Among them, the higher ESG rating firms have lower default risk than others with lower rating record, consisting with the finding of Li et al. (2022). Interestingly, such superiority remains no matter their ESG rating is improved or worsened in next year. It is possible that firms who voluntarily take ESG evaluation conveying they are more information transparency and have higher intention on regulatory compliance than competitors. This study suggests policymakers to consider a mandatory ESG evaluation and disclosure results freely to public for the purpose of shareholder protection.
ESG对企业来说是必不可少的,只有少数台湾公司有独立第三方评估的ESG评级记录。本研究考察了这些领先的公司是否与较低的违约风险相关。本文选取摩根士丹利资本国际(MSCI)于2017年至2021年自愿评估的66个台湾样本,发现它们的行业调整违约风险较低。其中,ESG评级较高的公司违约风险低于评级记录较低的公司,这与Li et al.(2022)的发现一致。有趣的是,无论明年的ESG评级是提高还是下降,这种优势仍然存在。自愿接受ESG评估的公司可能比竞争对手具有更高的信息透明度和更高的合规意愿。本研究建议决策者考虑强制性的ESG评估,并以保护股东为目的向公众自由披露结果。