In this paper, we propose a linear factor model that incorporates investor preferences toward sustainability to analyze indirect effects that climate concerns may have on asset prices. Our approach is based on the relationship between environmental,...
Disclosing information on environmental, social, and governance (ESG) parameters is voluntary for most firms across the world. Companies disclose their performance on ESG datapoints due to two main reasons—(i) to gain the trust of stakeholders...
Environmental, social and governance (ESG) ratings (scores) provide quantitative measures for socially responsible investment. We consider ESG scores to be a third independent variable—on par with financial risk and return—and incorporate such numeri...
This study investigates the ESG performance–systemic risk (SR) nexus among Indian companies. Using the beta coefficient from the Capital Asset Pricing Model (CAPM) and statistical analysis, it explores how ESG performance affects SR. The findin...
Environmental, Social, and Governance (ESG) finance is a cornerstone of modern finance and investment, as it changes the classical return-risk view of investment by incorporating an additional dimension to investment performance: the ESG score of the...
In contrarian trading, investors buy and sell loser stocks (lowest average historical prices) and winner stocks (highest average historical prices), respectively. This study examines whether (a) Thailand Sustainability Investment-listed companies out...
This study explores the time-varying influence of Environmental, Social, and Governance (ESG) factors on asset pricing in China’s A-share market from 2017 to 2023, integrating investor heterogeneity categorized as ESG-unaware (Type-U), ESG-awar...
The overvaluation of merger and acquisition (M&A) assets can lead to a decline in the performance of listed firms, an increase in the risk of goodwill impairment, and harm to the rights of minority shareholders, as well as to the sustainable deve...
This paper delves into the dynamics of asset pricing within Bachelier’s market model (BMM), elucidating the representation of risky asset price dynamics and the definition of riskless assets. It highlights the fundamental differences between BMM and...
Environmental, social, and governance (ESG) integration is an increasingly popular and innovative investing strategy that requires companies to be transparent about their ESG practices to facilitate investors’ decisions. In the palm oil sector,...
With the exponential development of an ecological and sustainable economy and society, the concept and practice of environmental, social, and governance (ESG) investments are being popularized in the capital market of China. ESG disclosure is an impo...
Attention to environmental, social, and governance (ESG) investing has grown in recent years. Even after the SARS-CoV-2 (COVID-19) global pandemic, there has been a rise in financial instruments that are structured according to certain prescribed &ld...
In the context of rising investor interest in Environmental, Social, and Governance (ESG) benchmarks, this study examines whether first-time inclusion in Thailand’s ESG100 index improves firm performance. Performance is measured along three dim...
There is extensive literature on the value relevance of social responsibility for companies that operate in developed countries. However, little is known about the influence of these practices on the price of assets listed on emerging economies, such...
The European Union (EU) has impacted regulation worldwide in areas ranging from data protection to trade or antitrust. In select fields, it has defined stringent standards and has had an impact on global business because of the size of its market and...
Financial economists have long studied factors related to risk premiums, pricing biases, and diversification impediments. This study examines the relationship between a firm’s commitment to environmental, social, and governance principles (ESGs...
ESG (Environmental, Social, and Governance) considerations are increasingly influencing REIT (real estate investment trust) investment decisions; however, empirical evidence on the ESG–financial performance nexus in infrastructure REITs remains...
As a key facet of sustainable development, environmental, social and governance (ESG) discretion on stock market investment decision is gaining prevalence following the global financial crisis. ESG considers the sustainable return, risk reduction, an...
Sustainable investing is an investment approach in line with the values of sustainable development and compliance with environmental, social, and corporate governance (ESG) criteria. The aim of the article is to propose a sustainable investing model...
Conventional climate-risk frameworks, ranging from ESG ratings to Integrated Assessment Models (IAMs), systematically underestimate physical risks by overlooking the non-linear physics that govern infrastructure failure. These top-down models perceiv...
This study discusses how financial economic theory and its quantitative tools can be applied to create socioeconomic indices and develop a financial market for the so-called “socioeconomic well-being indices”. In this study, we quantify s...
International organizations have highlighted the importance of consistent and reliable environment, social and governance (ESG) disclosure and metrics to inform business strategy and investment decisions. Greater corporate disclosure is a positive si...
‘Sustainable investment’—includes a variety of asset classes selected while caring for the causes of environmental, social, and governance (ESG). It is an investment strategy that seeks to combine social and/ or environmental benefi...
This study provides a comprehensive synthesis of climate risk and financial stability literature through a systematic review and bibliometric analysis of 174 Scopus-indexed publications from 1988 to 2024. Publications increased by 500% from 1988 to 2...