The Journal of Impact and ESG Investing最新文献

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Valuing ESG: Doing Good or Sounding Good? 重视ESG:做得好还是听起来好?

The Journal of Impact and ESG Investing Pub Date : 2020-03-20 DOI: 10.2139/ssrn.3557432

Bradford Cornell, A. Damodaran

{"title":"Valuing ESG: Doing Good or Sounding Good?","authors":"Bradford Cornell, A. Damodaran","doi":"10.2139/ssrn.3557432","DOIUrl":"https://doi.org/10.2139/ssrn.3557432","url":null,"abstract":"In the last decade, companies have come under pressure to be socially conscious and environmentally responsible, with the pressure coming sometimes from politicians, regulators, and interest groups, and sometimes from investors. The argument that corporate managers should replace their singular focus on shareholders with a broader vision, where they also serve other stakeholders, including customers, employees, and society, has found a receptive audience with corporate CEOs and institutional investors. The pitch that companies should focus on doing good is sweetened with the promise that it will also be good for their bottom line and for shareholders. In this article, we build a framework for value that will allow us to examine how being socially responsible can manifest in the tangible ingredients of value and look at the evidence for whether being socially responsible is creating value for companies and for investors. TOPIC: ESG investing Key Findings • For ESG to increase company value, actions taken to improve ESG ratings have to result in either higher cash flows or lower risk, and there is the very real possibility that being good can lower value for some firms. • The evidence that being good improves a company’s operating performance (increases cashflows) is weak but there is more solid backing for the proposition that being bad can make funding more expensive (higher costs of equity and debt). • Investing in companies that are recognized by the market as good companies is likely to decrease, rather than increase, investor returns, but investing in companies that are good, before the market recognizes and prices in the goodness, has a much better chance of success.","PeriodicalId":213872,"journal":{"name":"The Journal of Impact and ESG Investing","volume":"78 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127010660","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 51

Is the Stock Market Worried About Climate Change? Lessons from the 2010s 股市担心气候变化吗?2010年代的教训

The Journal of Impact and ESG Investing Pub Date : 2020-03-05 DOI: 10.2139/ssrn.3549416

Bradford Cornell

{"title":"Is the Stock Market Worried About Climate Change? Lessons from the 2010s","authors":"Bradford Cornell","doi":"10.2139/ssrn.3549416","DOIUrl":"https://doi.org/10.2139/ssrn.3549416","url":null,"abstract":"On Christmas Eve 2019, the MIT Technology Review published an article entitled “The 2010s Were Another Lost Decade on Climate Change.” On New Year’s Day, the Washington Post published a longer article with the same title. Both pieces told basically the same story, one repeated by many environmentalists and climate experts: The failure to take meaningful action on climate change in the 2010s had dramatically exacerbated the problem. This article investigates how the stock market reacted to the negative climate-related news that emerged during the 2010s. The results suggest that at an aggregate level the stock market was unconcerned about the climate news, implying that the market believed that climate change would not have a major impact on future macroeconomic growth. There is evidence, however, that the market concluded that climate issues would be a significant problem for fossil fuel companies. TOPICS: ESG investing, Tail risks, financial crises and financial market history Key Findings ▪ According to many environmental experts, the 2010s were a lost decade for climate change, which foretold large future economic damages. This suggests that the 2010s should have been a bad decade for the stock market as it discounted the prospect of future climate-related costs. ▪ In fact, the decade of the 2010s was the second best in US history, surpassed only by the 1950s. The largest stock market drops that did occur during the decade were totally unrelated to climate news. ▪ Although the aggregate stock market was apparently unconcerned about climate change, climate worries did affect certain sectors. For instance, fossil fuel companies dramatically underperformed the overall market.","PeriodicalId":213872,"journal":{"name":"The Journal of Impact and ESG Investing","volume":"327 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134288037","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 2

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