Your browser doesn't support javascript.
loading
Geopolitical risk and firm-level environmental, social and governance (ESG) performance.
Abdullah, Mohammad; Tiwari, Aviral Kumar; Hossain, Mohammad Razib; Abakah, Emmanuel Joel Aikins.
Afiliación
  • Abdullah M; Southampton Malaysia Business School, University of Southampton Malaysia, 79100 Iskandar Puteri, Johor, Malaysia. Electronic address: m.abdullah@soton.ac.uk.
  • Tiwari AK; Indian Institute of Management Bodh Gaya, Bodh Gaya, India. Electronic address: aviral.t@iimbg.ac.in.
  • Hossain MR; School of Economics and Public Policy, Adelaide Business School, The University of Adelaide, Australia; Department of Agricultural Finance and Cooperatives, Bangabandhu Sheikh Mujibur Rahman, Agricultural University, Gazipur, Bangladesh. Electronic address: razibbau09@gmail.com.
  • Abakah EJA; Department of Finance, University of Ghana Business School, Accra, Ghana. Electronic address: ejabakah@gmail.com.
J Environ Manage ; 363: 121245, 2024 Jul.
Article en En | MEDLINE | ID: mdl-38843729
ABSTRACT
This study investigates the impact of geopolitical risk on firm-level environmental, social, and governance (ESG) performance. Using a news-based indicator of geopolitical risk across 41 countries and a comprehensive dataset spanning from 2002 to 2021 with 65,354 firm-year observations, we uncover that geopolitical risk is negatively associated with ESG performance. Our findings remain robust even when considering alternative measures of geopolitical risk, ESG components, and sub-samples. Moreover, we address potential endogeneity concerns through two-stage least squares, propensity score matching and entropy balancing approaches. Interestingly, we find that the effect of geopolitical risk is positive for countries with lower geopolitical risk and high peace, indicating that relatively stable environments can incentivize firms to enhance their sustainability practices. We also examine the potential channel effects of cash holding, corporate investment, and cost of capital, and found significant effects. Overall, this paper underscores the significance of geopolitical risk as a macro-level shock that significantly influences ESG performance.
Asunto(s)
Palabras clave
Texto completo
Añadir a Mi BVS
Imprimir
XML
PubMed Links
Buscar en Google

Texto completo: 1 Colección: 01-internacional Base de datos: MEDLINE Asunto principal: Política Límite: Humans Idioma: En Revista: J Environ Manage Año: 2024 Tipo del documento: Article Pais de publicación: Reino Unido
Texto completo
Añadir a Mi BVS
Imprimir
XML
PubMed Links
Buscar en Google

Texto completo: 1 Colección: 01-internacional Base de datos: MEDLINE Asunto principal: Política Límite: Humans Idioma: En Revista: J Environ Manage Año: 2024 Tipo del documento: Article Pais de publicación: Reino Unido