The duality of ESG: Impact of ratings and disagreement on stock crash risk in China

被引：57
作者：
Luo, Deqing [1 ]
Yan, Jingzhou [2 ]
Yan, Qianhui [3 ]
机构：
[1] Hubei Univ Econ, Inst Adv Studies Finance & Econ, Wuhan, Peoples R China
[2] Sichuan Univ, Econ Sch, Chengudu, Peoples R China
[3] Fudan Univ, Sch Econ, Shanghai, Peoples R China
来源：
FINANCE RESEARCH LETTERS | 2023年 / 58卷
基金：
中国国家自然科学基金;
关键词：
ESG; ESG disagreement; Stock crash risk; Sustainable investment;
D O I：
10.1016/j.frl.2023.104479
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study scrutinizes the effects of Environmental, Social, and Governance (ESG) and ESG disagreement on the stock price crash risk among Chinese listed firms. Shifting the focus from mere ESG ratings, the research emphasizes the effect of ESG disagreement across various rating agencies. Our results confirm that higher ESG ratings contribute to a diminished likelihood of stock price crash risk, while the salutary impact is diminished by the prevalent ESG disagree-ment among rating agencies. Additionally, subgroup analyses reveal heterogeneity, with the moderating effects of ESG disagreement notably pronounced in State-Owned Enterprises (SOEs) than the non-SOEs. These findings accentuate the imperative for rating agencies to harmonize their ESG evaluating methodologies and call for normalization in firms' ESG disclosure practices, thereby minimizing stock price crash risk and fortifying financial market stability.
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页数：8
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