Active Ownership

Dimson, Elroy; Karakaş, Oğuzhan; Li, Xi

doi:10.1093/rfs/hhv044

Cited by 870 publications

(349 citation statements)

References 59 publications

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“…Although comprehensive meta-studies reveal mixed or even conflicting results (Orlitzky et al, 2003;Margolis et al, 2009;Fulton et al, 2012), an increasing number of studies supports the value creation theory (Luo and Bhattacharya, 2009;El Ghoul et al, 2011;Goss and Roberts, 2011;Cheng et al, 2014;Dimson et al, 2015;Kaspereit and Lopatta, 2016). Consequentially, we hypothesize that the stock market values a firm's ESG performance, but follow Hassel et al (2005) in resigning prediction of the sign due to the presence of two opposing theories.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 71%

Investors' Perception of ESG Performance: Is Integrated Reporting Keeping its Promise?

Mervelskemper

Streit

2015

SSRN Journal

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 71%

Investors' Perception of ESG Performance: Is Integrated Reporting Keeping its Promise?

Mervelskemper

Streit

2015

SSRN Journal

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“…Callan & Thomas, 2009;Deng, Kang, & Low, 2013;Ferrell, Liang, & Renneboog, 2016;Lins, Servaes, & Tamayo, 2017;Marti, Rovira-Val, & Drescher, 2015, among others). For instance, Deng et al (2013) show that high CSR acquirers realize higher merger announcement returns and better post-merger operating performance, and Dimson, Karakaş, and Li (2015) show that better CSR performance is related to larger abnormal stock returns, supporting the positive stakeholder view of CSR. In a recent review of the CSR literature in the areas of accounting, finance and management, Malik (2015) indicates that firms align their social goals with corporate goals, and that firms with strong CSR performance have greater potential to increase the value for both shareholders and other stakeholders.…”

Section: Introductionmentioning

confidence: 79%

Environmental responsibility, market valuation, and firm characteristics: Evidence from China

Junnan

Wang

Xie

2018

Corp Soc Responsibility Env

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Using a large panel of listed firms in China from 2010 to 2015, this study investigates the valuation effect of corporate environmental responsibility (CER) and firm characteristics that influence such an effect. We implement the ordinary least squares and the fixed effects panel regressions as well as the two‐stage least squares regressions that control for potential endogeneity. We find that CER has a significantly positive effect on firm performance. The positive effect is more pronounced for firms in highly polluting industries, with high asset tangibility and with low state ownership. Furthermore, firms with high ownership concentration and low managerial ownership tend to benefit more from their environmentally responsible activities, suggesting that enhanced environmental engagement may serve as a strategic tool in reducing the negative effects of agency cost and weak corporate governance on firm valuation. Our results are robust to alternative measures of performance (Tobin's Q and return on assets).

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“…Dimson, Karakaş, and Li (2015) argue that in demonstrating their environmental, social, and governance (ESG) concerns, shareholders are increasingly exercising their right to influence the management of the business. Dimson, Karakaş, and Li (2015) argue that in demonstrating their environmental, social, and governance (ESG) concerns, shareholders are increasingly exercising their right to influence the management of the business.…”

Section: The Relationship Between Cg and Environmental Engagementmentioning

confidence: 99%

Sustainable development and corporate governance in the financial system: Are environmentally friendly banks less risky?

Gangi

Meles

D’Angelo

et al. 2018

Corp Soc Responsibility Env

215

168

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This paper responds to the need for a deeper empirical investigation of the impact of corporate social responsibility pillars on the financial performance of banks. To address this question, this study first analyzes the factors that encourage banks to be more environmentally friendly and then investigates the relationship between a bank's environmental engagement and its risk. Using a sample of 142 banks from 35 countries covering the period from 2011 to 2015, we document the positive impact of effective corporate governance mechanisms on banks' environmental engagement. Moreover, by using the Heckman's two-stage model for the treatment of sample selection bias, we find that banks that are more sensitive to environmental issues also exhibit less risk. Stakeholder theory and the conflict resolution hypothesis are useful frameworks to overcome the trade-off between economy and ecology in the banking industry.

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Active Ownership

Cited by 870 publications

References 59 publications

Investors' Perception of ESG Performance: Is Integrated Reporting Keeping its Promise?

Investors' Perception of ESG Performance: Is Integrated Reporting Keeping its Promise?

Environmental responsibility, market valuation, and firm characteristics: Evidence from China

Sustainable development and corporate governance in the financial system: Are environmentally friendly banks less risky?

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