Research and publications
On the resilience of ESG firms during the COVID-19 crisis: evidence across countries and asset classes
Journal of International Business Studies
This study investigates the resilience of firms with strong Environ ...
Author(s):
Gianfranco Gianfrate
Summary:
Journal of International Business Studies
This study investigates the resilience of firms with strong Environmental, Social, and Governance (ESG) ratings during the COVID-19 crisis across 63 countries and three asset classes: stocks, credit default swaps (CDS), and corporate bonds. The findings reveal that the resilience of ESG firms is not a uniform global phenomenon but is significantly influenced by geographic factors, particularly outside of North America. The study also explores a potential substitution effect between firm-level ESG performance and country-level sustainability metrics, such as healthcare coverage. The results suggest that while ESG performance contributes to financial resilience during crises, this effect is heavily dependent on the region and the specific asset class. Notably, the study finds that ESG resilience is more pronounced in bond markets than in stock or CDS markets. The research highlights the importance of considering geographic context in the assessment of ESG performance and its impact on international corporate debt markets.
Keywords: ESG, Geography, COVID-19, Equity valuation, Market crash, Credit default swap, Corporate bonds, Sustainability
| Type : | Academic Publication |
|---|---|
| Date : | 30/08/2024 |
| Editor : | Springer Nature |
About EDHEC
Operating from campuses in Lille, Nice, Paris, London and Singapore, EDHEC is one of the world’s top 15 business schools. Fully international and directly connected to the business world, EDHEC commands a strong reputation for research excellence and the ability to train entrepreneurs and managers capable of breaking new ground. EDHEC functions as a genuine laboratory of ideas and produces innovative solutions valued by businesses. The School’s teaching is inspired by its research work and a focus on “learning by doing”, all with the aim of equipping people with the skills to succeed in business.
