Motives for environmental and social engagement and stock liquidity: The moderating role of sustainability committees

IF 4.8 2区 经济学 Q1 BUSINESS, FINANCE
Phuc Minh Nguyen , Christine Jubb , Roshanthi Dias
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引用次数: 0

Abstract

While stock liquidity has long been a vital consideration in stock markets, environmental, social and governance (ESG) performance has become a growing consideration due to its numerous benefits to companies and society. However, there is limited research on whether corporate motivations to engage in ESG activities affect stock liquidity. We examine this relationship in the context of the Australian Securities Exchange (ASX) by studying the role of three motivations (strategic, altruism, or greenwashing) for company engagement in ESG activities in explaining stock liquidity. We also examine the role of sustainability committees in explaining stock liquidity. Using companies included in the S&P ASX 300 from 2009 to 2018, a positive association is found between stock liquidity and a strategic motivation for environmental and social engagement and sustainability committee presence. An unexpected finding is that sustainability committee formation can mislead investors to reward a greenwashing motivation by improving stock liquidity. These findings provide valuable new insights into motives to engage particularly with the “E” and “S” in ESG and sustainability committees' role in improving stock liquidity.

环境和社会参与动机与股票流动性:可持续发展委员会的调节作用
长期以来,股票流动性一直是股票市场的一个重要考虑因素,而环境、社会和治理(ESG)绩效因其对公司和社会的诸多益处而日益受到重视。然而,关于企业参与环境、社会和治理活动的动机是否会影响股票流动性的研究却很有限。我们以澳大利亚证券交易所(ASX)为背景,研究了公司参与 ESG 活动的三种动机(战略动机、利他主义动机或 "洗绿 "动机)在解释股票流动性方面的作用,从而检验了这种关系。我们还研究了可持续发展委员会在解释股票流动性方面的作用。利用 2009 年至 2018 年 S&P ASX 300 指数中的公司,我们发现股票流动性与环境和社会参与的战略动机以及可持续发展委员会的存在之间存在正相关。一个意想不到的发现是,可持续发展委员会的成立会误导投资者通过提高股票流动性来奖励绿色清洗动机。这些发现为研究参与动机(尤其是环境、社会和治理中的 "E "和 "S")以及可持续发展委员会在提高股票流动性方面的作用提供了宝贵的新见解。
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来源期刊
Pacific-Basin Finance Journal
Pacific-Basin Finance Journal BUSINESS, FINANCE-
CiteScore
6.80
自引率
6.50%
发文量
157
期刊介绍: The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.
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