PurposeCorporate social responsibility (CSR) actions are expected to reduce information asymmetries and increase legitimacy among the stakeholders of the company, which consequently should have a positive impact on the financial conditions of the firm. Hence, the objective of this paper is to find empirical evidence on the negative relationship between sustainable behavior and the cost of equity, in the specific context of Latin America. To address this issue, some proxies and moderating variables for sustainability are used in our study.Design/methodology/approachThe regression model considers a sample with 252 publicly trading firms and 2,772 firm-year observations, from 2008 to 2018. The generalized method of moments is used to avoid endogeneity problems.FindingsThe study finds evidence that firms with higher environmental, social and governance activities disclosed by sustainability reports and assured by external providers decrease their cost of equity, especially if they are in an integrated market as MILA. This finding confirms that agency conflicts between firm's management and stakeholders diminish with higher CSR transparency, leading to a lower cost of capital.Originality/valueOur research is unique and valuable as, to our knowledge, it is the first study to analyze the impact of sustainable behavior and the cost of equity from companies operating in Latin America.

PurposeThe objective of this paper is to analyze in an international setting the relationship between environmental disclosures, carbon emissions and gender equality on the board of directors with the cost of equity (CoE) in the food and beverage sector.Design/methodology/approachThe study sample includes 142 listed firms and 1,562 firm-observations from 35 developed and developing countries between 2009 and 2019. The authors implement a fixed-effects regression model to contrast the impact of the three sustainable variables of interest on the CoE.FindingsThe results of this study indicate that firms in the food and beverage industry benefit from a lower CoE due to better environmental disclosures and gender equality. On the other hand, carbon intensive firms are penalized with higher equity costs.Originality/valueThis study expands prior research on the effects of sustainable behavior on the CoE in the food and beverage industry by taking into account additional sustainability variables and a greater number of observations, both from developed and from developing countries.

RESUMENEl objetivo del artículo es analizar y proponer estrategias que permitan incrementar los flujos de inversión extranjera privada hacia nuestro país, con el propósito de generar plazas de trabajo y constituir negocios sustentables cumpliendo con el Décimo Objetivo del II Plan Nacional del Buen Vivir que busca cambiar la matriz productiva, pasando de una economía exportadora de productos básicos a una economía generadora de productos y servicios con alto valor agregado. La propuesta consiste en explicar una modalidad de inversión que permita compartir el riesgo de invertir entre el inversionista privado y el Gobierno Central, considerando que el segundo participante tiene levantados proyectos que buscan capitales provenientes de inversionistas extranjeros.PALABRAS CLAVE: alianzas públicas y privadas, inversión extranjera directa, desarrollo de negocios, cambio de la matriz productiva, sectores estratégicos. ABSTRACTThe purpose of the articles is to analyze and propose strategies which aims to increase the inflows of private foreign investment directed into Ecuador with the purpose of increase job opportunities and develop sustainable businesses by fulfilling the objectives defined in the II Good Living Plan specifically the 10th objective which aims to transform the Production Matrix of Ecuador by exporting value added products instead of basic agricultural and non renewable commodities. The proposal aims to explain the investment stake between private corporate investor and the Ecuadorian Government who already have projects developed which are seeking capital from foreign investors.