Abstract

Environmental, Social, and Governance (ESG) and ESG-related risks are highly important for both companies and investors. Companies considering ESG factors while making business-related decisions and assessing the company's risks outperform other companies over the long term. The aim of the research is to investigate whether ESG factors that are specific to particular industries can be identified as systematic risk factors in various industries, and examine how systemic ESG factors impact the performance of companies. Also, the study highlighted differences in ESG factors’ systemic risks across industries. The regression was built to identify the influence of ESG-related factors on the companies’ financial performance. It is anticipated that systematic ESG risks are significant for companies’ performance, but there are strong industry specifics.

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