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.
引用
收藏
页数：12
相关论文
共 50 条
  • [41] Analysis of the Influence of ESG on the Investment Efficiency of Enterprises
    Tang, Yingkai
    Zhao, Yiling
    Manzoor, Aqsa
    EIGHTEENTH INTERNATIONAL CONFERENCE ON MANAGEMENT SCIENCE AND ENGINEERING MANAGEMENT, ICMSEM 2024, 2024, 215 : 893 - 904
  • [42] ESG/CSR, Value, Returns
    Chang, Xin
    Fu, Kangkang
    Jin, Yaling
    Liem, Pei Fun
    ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, 2022, 51 (03) : 325 - 371
  • [43] Responsible investment: Institutional shareholders and ESG performance
    Sun, Yanmei
    Zhao, Zhuowei
    PACIFIC-BASIN FINANCE JOURNAL, 2024, 85
  • [44] How does financial reporting quality mediate ESG performance to investment efficiency?
    Maiyarni, Reka
    Utama, Sidharta
    Djakman, Chaerul D.
    Mita, Aria Farah
    INTERNATIONAL JOURNAL OF ETHICS AND SYSTEMS, 2024,
  • [45] ESG performance and firms' business and geographical diversification: An empirical approach
    Barros, Victor
    Matos, Pedro Verga
    Sarmento, Joaquim Miranda
    Vieira, Pedro Rino
    JOURNAL OF BUSINESS RESEARCH, 2024, 172
  • [46] Domestic vs. Foreign Institutional Investors: Who Improves ESG and Value of Chinese Companies?
    Yoo, Jae Wook
    Chang, Yu Jin
    SUSTAINABILITY, 2024, 16 (18)
  • [47] Does It Pay Off to Integrate ESG Performance into Bank Investment Portfolio Selection? Empirical Evidence in the European Energy Sector
    Baldissarro, Giovanni
    Bruni, Maria Elena
    Iazzolino, Gianpaolo
    Morea, Donato
    Veltri, Stefania
    SUSTAINABILITY, 2024, 16 (23)
  • [48] Investment and Market Structure in Industries with Congestion
    Johari, Ramesh
    Weintraub, Gabriel Y.
    Van Roy, Benjamin
    OPERATIONS RESEARCH, 2010, 58 (05) : 1303 - 1317
  • [49] Inefficient Investment and the Diversification Discount: Evidence from Corporate Asset Purchases
    Chen, Sheng-Syan
    Chen, I-Ju
    JOURNAL OF BUSINESS FINANCE & ACCOUNTING, 2011, 38 (7-8) : 887 - 914
  • [50] THE BENEFITS OF GEOGRAPHIC SALES DIVERSIFICATION: HOW EXPORTING FACILITATES CAPITAL INVESTMENT
    Shaver, J. Myles
    STRATEGIC MANAGEMENT JOURNAL, 2011, 32 (10) : 1046 - 1060
12345