Panel Name

Advances in Business and Management

Location

Lecture Center 13

Start Date

3-5-2019 3:15 PM

End Date

3-5-2019 4:30 PM

Presentation Type

Oral Presentation

Academic Major

Business Administration, Finance

Abstract

Given the rising interest in the relationship between Environmental, Social and Governance rating (ESG) and its components, this paper investigates the relationship between insider/institutional ownership structure, ESG ratings and financial performance of the firm, using 398 companies in U.S. 2017 obtained from Bloomberg. This paper entails cross-sectional analysis of ESG rating and its components in 10 sectors (Communication, Consumer Discretionary, Consumer Staples, Energy, Financial, Health Care, Industrials, Materials, Technology, and Utilities) and Return on Asset as a matrix for financial performance. The results suggest that ESG rating and performance of the firm is positively and significantly associated, except environmental score. Ownership structure differently affects to ESG rating and its component by the sectors, even when controlling for the firm’s size. The study contributes to research on both the impact of ESG rating and its components to the performance of the firm and the relationship between ownership structure and ESG performance.

Select Where This Work Originated From

Senior Thesis/Project

First Faculty Advisor

Rita Biswas

First Advisor Email

biswas.rita@gmail.com

First Advisor Department

Finance

The work you will be presenting can best be described as

Finished or mostly finished by conference date

Download

Share

COinS
 
May 3rd, 3:15 PM May 3rd, 4:30 PM

ESG Rating and Ownership Structure in U.S. Firms

Lecture Center 13

Given the rising interest in the relationship between Environmental, Social and Governance rating (ESG) and its components, this paper investigates the relationship between insider/institutional ownership structure, ESG ratings and financial performance of the firm, using 398 companies in U.S. 2017 obtained from Bloomberg. This paper entails cross-sectional analysis of ESG rating and its components in 10 sectors (Communication, Consumer Discretionary, Consumer Staples, Energy, Financial, Health Care, Industrials, Materials, Technology, and Utilities) and Return on Asset as a matrix for financial performance. The results suggest that ESG rating and performance of the firm is positively and significantly associated, except environmental score. Ownership structure differently affects to ESG rating and its component by the sectors, even when controlling for the firm’s size. The study contributes to research on both the impact of ESG rating and its components to the performance of the firm and the relationship between ownership structure and ESG performance.