경영자 능력이 사업위험에 미치는 영향

Abstract

[Purpose] This study aims to analyze the impact of managerial abilities on a company’s business risks and examine whether ESG (Environmental, Social, Governance) management has a differential effect. [Methodology]The study conducts an empirical analysis on manufacturing companies listed in the Korean Stock Exchange and KOSDAQ from 2012 to 2022. It utilizes the Earnings Downside Risk (EDR) measure proposed by Konchitchki et al. (2016) as a metric for business risk and assesses Managerial Ability using the method developed by Demerjian et al. (2012a). Additionally, the study employs ESG rating data from the Korea Corporate Governance Service(KCGS). [Findings]The study reveals that ESG management significantly lowers business risk, with superior Managerial Ability playing a crucial role, especially in companies focused on ESG practices. This suggests that effective management skills in ESG－oriented companies are key to reducing business risk. [Implications]The study indicates that effective ESG management in companies can lead to long－term competitiveness and reduced business risk, with skilled managers playing a key role in achieving strategic benefits like cost savings, improved efficiency, and a better corporate image.