JEL classification: G12, G23, Q20
Keywords: ESG, firm value, closed-end funds, commitment, socially responsible in-vestment
학회소식
[2022년 5차 CAFM2022]ESG Commitment and the Value of “Walking the Talk”: Evidence from Closed-End Funds
작성자 : 관리자
조회수 : 289
게시일 :
2022-12-20
We investigate whether and how corporate ESG commitment can increase shareholder value. Using closed-end funds as an empirical laboratory, we find that funds committing to the U.N. Principles for Responsible Investment (PRI) are traded at a higher premium only when they “walk their talk” by increasing the ESG scores of their portfolios. The individual effect of the commitment itself is not significant. The positive impact of “walking the talk” is stronger when ESG-related regulations become more stringent. Overall, our analysis suggests that firms’ ESG commitment can lead to higher firm value when they can credibly “walk their talk” and this benefit is related to the direction of ESG regulations.
첨부파일
