ESG risk, economic policy uncertainty, and the downside risk: Evidence from US firms

IF 3.8 3区经济学 Q1 BUSINESS, FINANCE

North American Journal of Economics and Finance Pub Date : 2024-09-24 DOI:10.1016/j.najef.2024.102293

Chia-Hsien Tang , Hung-Chun Liu , Yen-Hsien Lee , Yuan-Teng Hsu

引用次数: 0

Abstract

This study investigates the relationship between risk factors of Environmental, Social, and Governance (ESG) and the downside risk of U.S. firms and tackles the role of economic policy uncertainty (EPU) in this relationship. Our results show that the downside risk of firms, as measured by value-at-risk and lower partial moment, is positively affected by ESG risk scores, and that this effect becomes more pronounced as EPU rises. These results are robust to two other alternative measures of ESG risk. We argue that enhancing ESG management and adaptability to economic uncertainty is crucial for aligning with sustainable development goals. Our findings provide valuable insights for U.S. firms, investors, and policymakers looking to navigate the evolving risk landscape.

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环境、社会和公司治理风险、经济政策不确定性和下行风险：来自美国公司的证据

本研究调查了环境、社会和治理（ESG）风险因素与美国公司下行风险之间的关系，并探讨了经济政策不确定性（EPU）在这一关系中的作用。我们的研究结果表明，以风险价值和下偏矩值衡量的企业下行风险受到 ESG 风险评分的积极影响，而且随着 EPU 的上升，这种影响变得更加明显。这些结果对其他两种衡量环境、社会和治理风险的方法都是稳健的。我们认为，加强 ESG 管理和对经济不确定性的适应性对于实现可持续发展目标至关重要。我们的研究结果为美国公司、投资者和决策者在不断变化的风险环境中寻找导航提供了宝贵的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

North American Journal of Economics and Finance Multiple-

CiteScore

7.30

自引率

8.30%

发文量

168

期刊介绍： The focus of the North-American Journal of Economics and Finance is on the economics of integration of goods, services, financial markets, at both regional and global levels with the role of economic policy in that process playing an important role. Both theoretical and empirical papers are welcome. Empirical and policy-related papers that rely on data and the experiences of countries outside North America are also welcome. Papers should offer concrete lessons about the ongoing process of globalization, or policy implications about how governments, domestic or international institutions, can improve the coordination of their activities. Empirical analysis should be capable of replication. Authors of accepted papers will be encouraged to supply data and computer programs.