ESG 경영과 기업 위험추구행위의 관계, 그리고 기업가치

Abstract

[Purpose] This study investigates the association between ESG management and corporate risk-taking, and further examines how the level of corporate risk-taking affects the relationship between ESG management and firm value. Shareholders have an incentive to maximize profits through corporate risk-taking, but ESG management monitors and suppresses the excessive risk-taking by considering the benefits of not only shareholders but also various stakeholders around the firm and pursuing transparent governance and the promotion of social value. In addition, if ESG investment(insurance-like assets) increases, the amount invested in risky investments may relatively decrease, thereby reducing overall corporate risk-taking. However, on the other hand, since ESG activities generally involve investing in sectors that do not directly generate profits, managers may actively invest in risky businesses that can secure more profits to make up for these expenditures. Because such conflicting predictions are possible, the association between ESG management and corporate risk-taking is an issue which requires empirical analysis.
 [Methodology] A regression analysis was performed for domestic listed firms from 2012 to 2018 using ESG evaluation ratings provided by KCGS and corporate risk-taking variables measured by standard deviation of future profit rate. Also, this study investigates the effect of the interaction term between ESG and risk-taking level to examine the impact of corporate risk-taking on the relationship between ESG management and firm value.
 [Findings] This study finds that the higher ESG evaluation score, the lower corporate risk-taking, and this negative relationship was significant in the governance element among the three elements of environment, social, and governance. Additionally, a significantly positive relationship between ESG management and firm value exists only when the level of corporate risk-taking is low, and there is no such relationship when the level of corporate risk-taking is high.
 [Implications] This study contributes to the accounting literature by showing that ESG management affects corporate risk-taking related to investment activities and that ESG management has a positive impact on firm value only when excessive risk-taking is restrained.