Semi-supervised Text Mining for Monitoring the News About the ESG Performance of Companies

Borms, Samuel; Boudt, Kris; Holle, Frederiek Van; Willems, Joeri

doi:10.1007/978-3-030-66891-4_10

Cited by 11 publications

(7 citation statements)

References 20 publications

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“…Referring to Borms et al (2021) and Bhandari et al (2021), we used their identified keywords for our corresponding ESG dimensions and translated them into Chinese to set the original seed words. Then we read the CSR reports of 500 listed companies in our sample and extracted keywords related to the context to develop our seed words.…”

Section: Appendixmentioning

confidence: 99%

Influence of distracted mutual fund investors on corporate ESG decoupling: evidence from China

Liu

Meng

2023

SAMPJ

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Purpose This study aims to explore whether investors’ inattention is associated with firms’ environmental, social and governance (ESG) decoupling, which is defined as the misalignment between the implementation and incorporation of ESG policies. Design/methodology/approach Focusing on a sample of the components of ESG ratings for China Securities Index (CSI) 300 companies between 2017 and 2019, the authors test the relationship between firms’ ESG decoupling level and mutual fund investors’ distraction by applying exogenous shocks to their portfolios. Findings The results show that firms with distracted mutual fund investors engage in more external than internal ESG actions, leading to a high ESG decoupling level. Mutual fund investors use “threat of exit” rather than “voice” as a governance mechanism to influence corporate ESG decoupling. While external ESG actions mitigate stock price crash risk, internal ESG actions increase firm value; firms with a high ESG decoupling level suffer lower valuations. Practical implications This study has implications for increasing the congruence between firms’ external and internal ESG actions, thereby improving firms’ ESG performance and long-term economic outcomes. Social implications This paper helps policy-makers and regulators to reassess how ESG policies can be implemented to be consistent with organizations’ core business activities. Originality/value Contributing to prior studies of greenwashing and corporate social responsibility decoupling, this paper extends decoupling literature by revisiting ESG impacts in an integrated framework and explores the antecedents of corporate ESG decoupling from the perspective of institutional investor monitoring.

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Section: Appendixmentioning

confidence: 99%

Influence of distracted mutual fund investors on corporate ESG decoupling: evidence from China

Liu

Meng

2023

SAMPJ

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“…To achieve the objective, an ESG index is constructed. Following Borms et al (2021), the index was created by utilizing data mining techniques and technology, particularly word frequency statistics from text mining, which show that attention would be brought to ESG if a news article about it were to be published. To the best of our knowledge, there is no universal definition of ESG.…”

Section: Methodology 41 Constructing the Country's Esg Indexmentioning

confidence: 99%

“…To the best of our knowledge, there is no universal definition of ESG. Therefore, this study uses seed terms from Borms et al (2021) to define the environmental, social, and governance elements. Using the Google search engine, the initial search comprised ESG keywords and the names of the ASEAN-5 countries to focus on the implementation of ESG.…”

Section: Methodology 41 Constructing the Country's Esg Indexmentioning

confidence: 99%

The Impact of Environmental, Social, and Governance (Esg) on the Economic Growth of Asean-5 Countries

Ghazali,

Mohd Daud,

Ismail

2023

Int. J. Res. Granthaalayah

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ESG program has become crucial for long-term value and business resiliency through efficient use of natural resources and effective policies on social and economic aspects. A country which has a good ESG performance would achieve higher economic growth. This study examines the ESG country-level performance across the ASEAN-5 by assessing the impact of ESG on economic growth. The study utilized annual data from 1990 to 2020 for five countries - Indonesia, Malaysia, the Philippines, Singapore, and Thailand. This study constructs the ESG index at the country level by employing frequency statistics of text mining and factor analysis for each country over time. Establishing an ESG country index would better reflect the ASEAN-5 nation's progress in ESG practices. Besides that, the ARDL method was employed to establish the relationship between ESG and economic growth. The results revealed mixed impacts of ESG on economic growth, which can be attributed to the variations in ESG practices and policies across the countries. Some results showed a significant positive impact of ESG practices on economic growth, while others showed no significant or negative impact. This study emphasizes the importance of a suitable ecosystem that supports the effectiveness of ESG adoption. This study recommends several precautionary policies, such as low-interest loans, grants, and tax relief, to support a firm's resilience during pandemics.

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“…As the context and corpus of our research are based on the annual reports of the US manufacturing sector, we could not readily adapt the extant keywords developed from news reports by Borms et al (2021b, p. 226). However, we used the keywords identified by them as our seed words, and extended them using machine learning, NLP, and CATA, at large.…”

Section: Methods and Samplementioning

confidence: 99%

The resource‐based view, stakeholder capitalism, ESG, and sustainable competitive advantage: The firm's embeddedness into ecology, society, and governance

2022

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The main research question of the study is this: Is the firm embedded into ecology, society, and governance (ESG), or vice versa? Using the resource-based view as a theoretical lens, and stakeholder capitalism as a paradigm anchored in the Dashgupat Review, we demonstrate in a panel data over 26 years that at the firm level, the relationship between sustained competitive advantage and the ESG footprint is concave shaped, and the impact inequality multiple gaps of the ESG footprint are 4.75 times the providing capacity of the natural and business environment. To solve the common method variance, endogeneity, and unobserved heterogeneity, system GMM is used as a method in a dataset of US manufacturing firms from 1992 to 2019. At the end, we argue that extant attributes of a resource base for sustained competitive advantage have an inherent flaw anchored in the resource-based view, as they ignore the "environmental, social, and governance (ESG) friendliness" attribute of a resource. Managers need to rethink the objective of their firms if they want to survive in the new ESG-friendly economy with stakeholder supremacy.

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Semi-supervised Text Mining for Monitoring the News About the ESG Performance of Companies

Cited by 11 publications

References 20 publications

Influence of distracted mutual fund investors on corporate ESG decoupling: evidence from China

Influence of distracted mutual fund investors on corporate ESG decoupling: evidence from China

The Impact of Environmental, Social, and Governance (Esg) on the Economic Growth of Asean-5 Countries

The resource‐based view, stakeholder capitalism, ESG, and sustainable competitive advantage: The firm's embeddedness into ecology, society, and governance

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