RT info:eu-repo/semantics/masterThesis
T1 How do corporate ESG practices impact required shareholders returns? Evidence from the implied cost of equity of European listed firms
T2 ¿Cómo influyen las prácticas corporativas de ESG en la rentabilidad exigida por los accionistas? Evidencia aportada por el coste de capital implícito de empresas europeas cotizadas
A1 Calvo Conde, Tábata
A2 Universidad de Valladolid. Facultad de Ciencias Económicas y Empresariales
K1 Empresas - Responsabilidad social
K1 Corporate social responsibility
K1 Implied cost of equity
K1 ESG (environmental, social and governance)
K1 5311 Organización y Dirección de Empresas
AB In this research, we explore the relationship between a firm’s ESG engagement, and the return required by its shareholders. Our hypothesis is that stronger ESG engagement is associated with a reduction in the return required by shareholders. We empirically test this hypothesis on a panel of publicly traded firms from a number of European countries during the period 2012-2023, using data obtained from Refinitiv Eikon. We use the implied cost of equity as a forward-looking measure of the return required by shareholders, which does not depend on any hypothesis about the type of risk involved or the appropriateness of any asset pricing model. This study provides empirical evidence that firms excelling in environmental, social, and governance practices can achieve financial benefits through reduced required returns, thereby highlighting the economic value of sustainable business practices. We also provide evidence for firms in European countries, which is still a relatively unexplored setting and which therefore allows us to offer a first insight into what influence the legal framework (common law versus civil law) has on the relationship between ESG engagement and required returns.
YR 2024
FD 2024
LK https://uvadoc.uva.es/handle/10324/72619
UL https://uvadoc.uva.es/handle/10324/72619
LA eng
DS UVaDOC
RD 04-abr-2025