Abstract
Environmental, social and governance aspects, collectively known as ESG fac-tors, have gained significant importance in finance recently. This paper focuses on uncovering the importance of the predictive power of country-level ESG indica-tors in estimating risk premiums. We use the Worldwide Governance Indicators and the database of global ESG indicators provided by the World Bank, while we apply the neural networks methodology. A constant relationship between ESG factors and risk premiums would result in obvious implications for policymakers, as well as for investors. We seek empirical evidence to leverage ESG considera-tions in investment decisions and policymaking to ensure sustainable economic development.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
