The impact of ESG ratings on firm risks in Taiwan's market

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

Pacific-Basin Finance Journal Pub Date : 2025-05-19 DOI:10.1016/j.pacfin.2025.102819

Shun-Fen Chang , Bai-Sian Chen , Hong-Yi Chen , Hsiao-Yin Chen

引用次数: 0

Abstract

This study investigates the impact of a firm's ESG achievements on various dimensions of firm risk, including financial risks, stock price crash risks, and financial constraints. Empirical evidence reveals a negative association between ESG scores and financial risks, as well as financial constraints, indicating that higher ESG performance contributes to lower overall firm risk. The reduction in crash risks becomes particularly evident during the COVID-19 crisis, highlighting the protective role of ESG engagement in times of market stress. These findings suggest that strategic investment in ESG activities enhances a firm's resilience and stability during both normal and adverse conditions.

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ESG评等对台湾市场企业风险之影响

本研究考察了企业ESG绩效对企业风险各维度的影响，包括财务风险、股价崩盘风险和财务约束。经验证据表明，ESG得分与财务风险以及财务约束之间存在负相关关系，表明较高的ESG绩效有助于降低企业的整体风险。在2019冠状病毒病危机期间，崩溃风险的降低尤为明显，凸显了ESG参与在市场压力时期的保护作用。这些研究结果表明，在正常和不利条件下，对ESG活动的战略投资都能增强企业的弹性和稳定性。

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

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.