Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model

Chen, Chun-Da; Su, Ching‐Hui; Chen, Ming‐Hsiang

doi:10.1016/j.tourman.2022.104581

Cited by 45 publications

(33 citation statements)

References 61 publications

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“…In addition, Ferriani and Natoli (2021) find that investors preferred low-ESG risk stocks for hedging against market downturns during Covid-19. Chen et al (2022) also examine the role of ESG during Covid-19 in the hotel industry. Their findings show that hotels with higher ESG ratings are less affected by the negative impacts of the pandemic, and so more immune during the Covid-19 crisis.…”

Section: Esg Performance and Stock Price Risk During Covid-19 Pandemicmentioning

confidence: 99%

“…In HSBC sustainable finance investment survey (2020), 49% of the global investors report that considering sustainability issues in the portfolio management improves portfolio returns and reduce risks (Rubbaniy et al ., 2021). Scholars and institutional experts now assess a firm's risks and growth prospects using nonfinancial factors —ESG (Chen et al ., 2022). In this context, ESG investing has triggered interest among asset managers.…”

Section: Overview and Theoretical Backgroundmentioning

confidence: 99%

“…In addition, Ferriani and Natoli (2021) find that investors preferred low-ESG risk stocks for hedging against market downturns during Covid-19. Chen et al . (2022) also examine the role of ESG during Covid-19 in the hotel industry.…”

Section: The Role Of Esg During the Covid-19 Pandemicmentioning

confidence: 99%

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Corporate immunity during crises and pandemics: does ESG matter? Literature review and future prospects

Mounir

Ali

2022

MSAR

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PurposeThis research aims at synthesizing the existing body of literature on the role of environmental, social and governance (ESG) during the Covid-19 global pandemic, identifying the research agenda and perspectives on the role of ESG during times of economic turbulences and pointing to gaps and future research directions in this area.Design/methodology/approachA literature review of academic articles that focus on the role of ESG investments during the Covid-19 pandemic is conducted. These studies are identified based on searching/containing the keywords “ESG”, “Corporate Social Responsibility (CSR)”, “Sustainability” and “Sustainable Finance” in combination with one or more of the following terms: “Covid-19”, “Pandemic” “and Crisis”. Then, the authors explore the key directions/themes in these papers, and highlight the main gaps and areas that are evolving as future research opportunities.FindingsThe empirical findings provide overall compelling evidence in support of the role of ESG during times of crisis, especially when it comes to stock risk and volatility. For example, several studies report that ESG stocks are associated with superior stock performance (higher stock returns and firm value) during the pandemic, while other studies report that ESG act as a risk protection tool during times of crisis, as they document that ESG stocks are associated with lower volatility and lower downside risk during the Covid-19 crisis.Originality/valueTo the best of the authors knowledge, no review of the literature on the role that ESG plays during crises and pandemics has been conducted before. Thus, it fulfills this research gap in the literature.

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Section: Esg Performance and Stock Price Risk During Covid-19 Pandemicmentioning

confidence: 99%

Section: Overview and Theoretical Backgroundmentioning

confidence: 99%

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Corporate immunity during crises and pandemics: does ESG matter? Literature review and future prospects

Mounir

Ali

2022

MSAR

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“…To alleviate the impact of COVID-19, hospitality firms across countries have pursued different strategies, including environmental, social and governance (ESG) practices (Chen et al, 2022;Qiu et al, 2021;Yeon et al, 2021). The growing concern about ESG issues has led to an increase in firms' awareness that good ESG practices can be a strategy to enhance firm value (Lins et al, 2017) and reduce risk exposure (Price and Sun, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…ESG practices show a bright side as a reputation builder to mitigate the negative pandemic impact on market-based performance, whereas the dark side of ESG practices consumes firm resources to aggravate the negative pandemic impact on accounting-based performance during the COVID-19 outbreak. Second, existing hospitality studies have investigated the effect of CSR/ESG on firm performance during the COVID-19 outbreak with mixed results (Chen et al, 2022;Clark et al, 2021;Qiu et al, 2021;Shin et al, 2021;Yeon et al, 2021), but few have explored the difference between the outbreak and recovery periods. Specifically, CSR practices mitigate the negative impact of COVID-19 on hospitality firms' stock returns in China (Qiu et al, 2021) and in the USA (Yeon et al, 2021), whereas Shin et al (2021) note that hospitality CSR strategies have a negative influence on hospitality firm stock returns during the US pandemic.…”

Section: Introductionmentioning

confidence: 99%

The bright and dark sides of ESG during the COVID-19 pandemic: evidence from China hospitality industry

Lin

Fan

et al. 2023

IJCHM

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Purpose This study aims to investigate the bright and dark sides of environmental, social and governance (ESG) during the COVID-19 pandemic, including both the outbreak and recovery periods, for the Chinese hospitality industry. Design/methodology/approach Using panel data of 564 firm-quarter observations from 2018 to 2020, the authors adopt fixed-effects regression estimation with standard errors clustered at the firm level. To address potential endogeneity concerns, the authors also use the two-stage least squares estimator with instrumental variables. Findings The results suggest that ESG plays different roles in market- and accounting-based performance during the COVID-19 outbreak and recovery periods. Specifically, ESG practices show a bright side as a reputation builder to mitigate the negative pandemic impact on market-based performance, whereas the dark side of ESG practices consumes firm resources to aggravate the negative pandemic impact on accounting-based performance during the coronavirus outbreak. These results also suggest hospitality companies benefit bountifully from ESG practices during the COVID-19 recovery. Practical implications ESG plays a vital role for hospitality firms by providing insurance-like protection during and after the COVID-19 outbreak. Additionally, hospitality firms should evaluate their capability to adapt resource-consuming ESG practices. Originality/value Existing hospitality COVID-19 studies have investigated the effect of ESG on firm performance within a short period with mixed results. This study extends the literature by showing the different effects of ESG practices on market- and accounting-based performance during the COVID-19 outbreak and recovery periods.

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The impact of the environmental, social and governance dimensions of sustainability on firm risk in the hospitality and tourism industry

García,

Herrero,

Morillas‐Jurado

2024

Corp Soc Responsibility Env

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This paper explores the relationship between adherence to corporate social responsibility goals and firm financial risk. Data on an international sample of 209 firms were collected for the period 2002 to 2022. Firm risk was proxied using stock return volatility and probability of default. The results show that the environmental performance of hospitality and tourism firms unequivocally influences firm risk, whether this risk is quantified as probability of default or volatility of stock market returns. This finding confirms that the adoption of environmentally sustainable and responsible practices is crucial not only for the environment but also for the stability of hospitality and tourism firms.

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Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model

Cited by 45 publications

References 61 publications

Corporate immunity during crises and pandemics: does ESG matter? Literature review and future prospects

Corporate immunity during crises and pandemics: does ESG matter? Literature review and future prospects

The bright and dark sides of ESG during the COVID-19 pandemic: evidence from China hospitality industry

The impact of the environmental, social and governance dimensions of sustainability on firm risk in the hospitality and tourism industry

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