The value of diversification: ESG and investment in controversial industries

被引：0
|
作者：
Iskenderoglu, Cansu [1 ]
机构：
[1] Ozyegin Univ, Fac Business, TR-34794 Cekmekoy, Istanbul, Turkiye
来源：
FINANCE RESEARCH LETTERS | 2025年 / 76卷
关键词：
Environmental; social; governance (ESG); Corporate social responsibility (CSR); Diversi; fication; diversification discount; Sin industries; Energy sector; CORPORATE SOCIAL-RESPONSIBILITY; INTERNAL CAPITAL-MARKETS; FIRMS; COMPETITION; ALLOCATION; INNOVATION; DISCOUNT;
D O I：
10.1016/j.frl.2025.106956
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper investigates the impact of Environmental, Social, and Governance (ESG) disclosure on the value of diversification and how investment in controversial industries (sin and energy) by conglomerate firms affects their ESG scores and valuations. I find that conglomerates with higher ESG scores have higher diversification values. Following an investment in controversial industries, conglomerate firms experience a significant decline in their ESG scores and valuations. Moreover, the negative impact of investments in con-troversial industries on the value of diversification is mitigated by higher ESG disclosure. After the Paris Agreement, in high ESG awareness period, excess values of conglomerates with higher ESG scores increase, indicating a causal effect.
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页数：12
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