Can ESG Investing Beat the Market and Improve Portfolio Diversification? Evidence from China

Dai, Yuwen

doi:10.1080/10971475.2020.1857063

Cited by 23 publications

(14 citation statements)

References 22 publications

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“…In China, evidence suggests that financial performance can be improved with positive ESG factors (e.g., see [10,11]). Several studies find that ESG investing in China can beat the market portfolio, and that the riskadjusted returns are higher for ESG equity index portfolios relative to the reference market indices [12]. Deng and Cheng [13] find similar results.…”

Section: Positive Implications Of Esg Investingmentioning

confidence: 84%

Perspective Chapter: The Environmental, Social, and Governance (ESG) Investment and Its Implications

Sarajoti¹,

Chatjuthamard²,

Papangkorn³

et al. 2023

Business, Management and Economics

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Investment management has been an important part in a long-term financial planning for investors around the world. Traditionally, investors aim to maximize the risk premium relative to the riskiness of the investment subjected to certain goals and constraints such as the time horizon, risk appetite, and consumption behavior. Recently, investors, both retail and institutional investors, have shown significant interests in sustainability especially on the environmental, social, and governance, which is often referred to as ESG investments. Studies on ESG investing are unable to reach consensus. We will review literature related to ESG investing in order to identify key limitations that obstruct advancements in this field. In particular, key limitations that we have identified involve the issues of data inconsistencies and the choice of benchmarks, among others. Furthermore, this chapter identifies areas for future research that address these limitations and thus should advance research in this field.

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Section: Positive Implications Of Esg Investingmentioning

confidence: 84%

Perspective Chapter: The Environmental, Social, and Governance (ESG) Investment and Its Implications

Sarajoti¹,

Chatjuthamard²,

Papangkorn³

et al. 2023

Business, Management and Economics

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“…The present results are aligned with the proposal from the Corporate Sustainability Reporting Directive European Commission (2021). As a developing country, China and its emerging market economies call for greater focus on the sustainability M&A activity and ESG performance framework and applications, including ESG and CSR, compared with developed economies (Dai, 2020). Nowadays, an increasing number of business managers include the implementation of ESG or CSR practices in company operations because of society's goal of sustainability.…”

Section: Practical Implicationsmentioning

confidence: 99%

M&A activity and ESG performance: evidence from China

Rahman,

2023

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PurposeThis study explores the effect of mergers and acquisitions (M&As) on corporations' environmental, social and governance (ESG) performance and values in the Chinese financial market.Design/methodology/approachThis study collected data covering 158 Chinese listed companies that have successfully completed at least one M&A activity between 2011 and 2020. Fixed effect and random models based on the Hausman test are adopted to mitigate potential heterogeneity issues in the selection.FindingsResults show that acquiring targets with high ESG performance can help increase their own ESG performance, which in turn increases their market values. Heterogeneity and robustness tests also provide consistent results. Findings further confirm the bidirectional correlation between ESG and M&As, and then enrich related literature by suggesting the importance of utilizing M&As as a driver to increase corporate ESG performance.Originality/valueThis study embodies the practical implications of ESG and M&A. Managers, investors and policymakers can highly benefit from the results through practical applications.

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“…The application of financial modeling also includes many aspects, accounting or finance; In terms of project investment or project management, it mainly adopts such as net present value / internal rate of return. Equity and bond investment includes market scale prediction, investment value prediction and income prediction of various equity; Model estimation and execution strategies for transactions and different financial products [5].…”

Section: Take Alipay As An Example To Illustrate the Role Of Financia...mentioning

confidence: 99%

Application of Statistics to Financial Modelling Taking Alipay as an Example

Yan¹

2023

Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022

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In the past two decades, with the development of computers and various statistical software, statistics, as a primary subject, has been widely used in finance, insurance, biology, medicine, economy, sports, operations management and engineering technology. Many fields have been extended by the use of statistical tools and ideas. Although there are still some problems or errors in applying statistical knowledge, statistics are of great help in many ways. Without it, many issues would not be solved. In the complex financial modelling environment, the use of statistics can often produce a more compelling force, so in the process of continuous development and improvement of statistics itself, it is used more and more frequently in the field of financial modelling.

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Can ESG Investing Beat the Market and Improve Portfolio Diversification? Evidence from China

Cited by 23 publications

References 22 publications

Perspective Chapter: The Environmental, Social, and Governance (ESG) Investment and Its Implications

Perspective Chapter: The Environmental, Social, and Governance (ESG) Investment and Its Implications

M&A activity and ESG performance: evidence from China

Application of Statistics to Financial Modelling Taking Alipay as an Example

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