Corporate Finance Commons^™

Linking Sustainability Performance To Stock Resilience During And After Covid-19 Crisis: Evidence From Southeast Asia, Khalilul Rahman, Retnosari Retnosari, Sanda Patrisia Komalasari, Muhammad Wafiq

Jurnal Akuntansi dan Keuangan Indonesia

Background: The COVID-19 pandemic severely disrupted markets. While sustainability performance measured by ESG scores theoretically buffers against shocks, its efficacy in emerging markets with nascent sustainability frameworks remains underexplored. Method: We analyze a balanced panel of 1,395 observations from 279 non-financial Southeast Asian firms (2020–2024). Using OLS, lagged, and fixed effects models, we compare the impact of sustainability performance on stock resilience during the 2020–2022 and post-pandemic (2023–2024) periods. Findings: Sustainability performance (ESG scores) significantly enhanced stock resilience during the pandemic. However, this protective effect dissipated post-pandemic. Results confirm a statistically significant improvement in overall resilience following the crisis, as …

Human Capital Disclosure And Labor Market Outcomes: Evidence From Regulation S-K, Jung Ho Choi, Dan Li, Daniele Macciocchi

Research Collection School Of Accountancy

We examine the labor market consequences of the 2020 Regulation S-K requiring human capital disclosure in 10K filings. Using large-sample job-level data and a Generative Large Language Model (GLLM), we observe that public firms subject to the regulation increase their disclosure of diversity, equity, and inclusion (DEI) information in job postings relative to a matched sample of large private firms. The increase in job-posting disclosure is more pronounced among firms facing greater external pressure to increase their workforce diversity. These findings suggest a shift in demand for diverse candidates by public firms following the regulation. Yet, consistent with short-term inelastic …

Pengaruh Environmental Score Terhadap Kinerja Keuangan Bank Di Enam Negara Asean Pada Tahun 2020-2023, Nadira Meuthia Jefri, Mona Ridho Sidjabat

Jurnal Manajemen dan Usahawan Indonesia

This study aims to examine the effect the financial performance of banks in six ASEAN countries (Indonesia, Malaysia, Singapore, Thailand, the Philippines, and Vietnam) during the period 2020–2023. The Environmental Score measures a company's environmental performance through three main sub-pillars: Emissions, Resource Use, and Innovation. Panel data from 31 banks were analysed using panel regression with robust standard errors, and endogeneity was tested using Two-Stage Least Squares (2SLS). The results show that the Environmental Score has a positive and significant effect on ROA, ROE, Tobin’s Q, and Market Capitalization, but no significant effect on NIM. The Resource Use Score sub-pillar …

The Political Economy Of Mandatory Disclosure: A Literature Review, Hao Liang, Hanyu Zhang

Research Collection Lee Kong Chian School Of Business

Reviewing the literature on mandatory corporate disclosure from a political economy perspective, we synthesize the classic justifications for disclosure regulations while emphasizing why voluntary disclosure often fails to achieve socially efficient transparency. We also highlight how legal institutions, enforcement capacity, and political forces shape the design, credibility, and effectiveness of disclosure mandates. Drawing on evidence from international and China-focused studies, we review empirical findings on how mandatory disclosure affects investor protection, information environments, and firm behavior, showing that similar reporting rules yield different outcomes across institutional settings. We further extend the discussion to ESG and climate-related disclosure to examine emerging …

The Impact Of Sustainable Responsible Investment On The Environmental And Financial Performance Of Listed Companies (In The Context Of European Regulatory Framework), Leila Kamara

Engaged Management ReView

Although socially responsible investment (SRI) first emerged in the United States in the 1970s, its influence is now global and booming. The most striking illustration is the increase of signatories to the United Nations Principles for Responsible Investment (PRI): The number of signatories surged from around 100 in 2006 to more than 5,000 in 2025 (Peillex & Comyns, 2020), confirming that SRI is now central to investment strategies. The landscape of environmental, social, and governance (ESG) investment has seen the emergence of new stakeholders, including data providers. However, persistent limitations regarding data transparency, accessibility, and comparability have prevented investors from …

Esg Greenwashing And Ownership Structure Under Information Asymmetry, Luu Thu Quang, Nguyen Dang Hai Yen, Vo Thien Trang, Tran Hoang Vu

European Management Studies

Purpose: This is the first paper to investigate how ownership structure influences ESG greenwashing, with a focus on the moderating role of information asymmetry. The study is set in Vietnam’s stock market, where state ownership remains significant and disclosure standards are still developing.

Design/Methodology/Approach: We construct a unique hand-collected dataset of annual reports from listed firms between 2020 and 2024. Greenwashing is measured using both disclosure–performance gaps and narrative-based textual analysis. Ordinary least squares and two-stage least squares regressions are employed, with robustness checks using alternative proxies for information asymmetry.

Findings: Results show that in transparent environments, …

From Ancient Harmony To Modern Sustainability: Assessing The Coupling Of Taoist “Harmony Between Humanity And Nature” With Esg And Its Impact On Firm Innovation And Performance, Biyi Wang

Dissertations and Theses Collection (Open Access)

Against the backdrop of intensifying global ecological crises, the ESG evaluation system has become a core metric for corporate sustainable development worldwide. However, the Western-dominated ESG system lacks crucial cultural dimensions in its application within Chinese corporate practices. The ecological wisdom embedded in the Taoist concept of “Harmony between Humanity and Nature” offers a significant philosophical foundation for the ESG localization. Extant research has focused on the influence of Confucian culture on ESG, with insufficient exploration of the modern managerial value of “Harmony between Humanity and Nature”. A scientific coupling framework linking this concept with ESG indicators has yet to …

Esg News, Future Cash Flows, And Firm Value, Francois Derrien, Philipp Krüger, Augustin Landier, Tianhao Yao

Research Collection Lee Kong Chian School Of Business

We investigate the expected consequences of negative environmental, social, and governance (ESG) news on firms' future profits. After learning about negative ESG news, analysts significantly downgrade their forecasts at short and longer horizons. Negative ESG news affects forecasts more strongly at longer horizons than other types of negative corporate news. The negative revisions of earnings forecasts following negative ESG news largely reflect expectations of lower future sales, rather than higher future costs. Quantitatively, forecast revisions can explain most of the negative impacts of ESG news on firm value. Analysts are correct to revise forecasts downward following negative ESG news.

Can Esg Reduce Credit Risk? An Empirical Investigation Across Asean-5 Markets, Arrafif Pratama Zaini, Maria Ulpah

The Indonesian Capital Market Review

Based on stakeholder theory and signaling theory, companies with strong ESG performance send signals to various stakeholders, thus building trust and influencing better credit risk evaluation. This study empirically examines the effect of Environmental, Social, and Governance (ESG) performance on the credit risk of non-financial public companies in ASEAN-5 countries (Indonesia, Malaysia, Philippines, Singapore, and Thailand) over the period 2019-2023. Corporate credit risk is measured using 2 main approaches: the accounting-based and market-based models. Merton's KMV model calculates the probability of default (PD) using a market-based approach. In contrast, the Altman Z-Score predicts bankruptcy risk based on financial ratios in …

Case Studies In Modern Accountancy: Exploring Financial Ethics, Corporate Influence, And Regional Development Through An Interdisciplinary Lens, Caroline Klocke

Honors Theses

This thesis compiles five case studies researched and completed during the 2023-2024 academic year, each exploring a different topic pertaining to the accounting profession today. With the guidance of Dr. Victoria Dickinson, professor at the University of Mississippi, these case studies were completed throughout the Accountancy 420 class to fulfill the research requirements of the Sally McDonnell Barksdale Honors College and the Patterson School of Accountancy. The first case emphasizes reliable international financial reporting, while exploring the exposure of fraudulent Chinese companies listed on U.S. stock exchanges that costed American investors billions of dollars. The second explores U.S. military spending …

Is Corporate Social Responsibility A Must Or A Plus? The Role Of National Culture, Liu Wang, Shaomin Li

Management Faculty Publications

This study examines the role of national culture in shaping corporate social responsibility (CSR) practices and how CSR is valued by investors. In a multilevel study of 4998 firms across 34 nations, we find that firms in performance-based culture (PBC) are more likely to engage in explicit CSR activities, but performance-driven investors view such an effort as a drag on shareholder returns in PBC-oriented societies, resulting in lower valuation. In contrast, firms in socially supportive culture (SSC) tend to invest less in explicit CSR activities, but such an investment is viewed favorably by social-minded investors in SSC-oriented societies, and thus …

Sustainability Gaps: The Role Of Esg Disparities In M&A Performance During The Covid-19 Era, Anastasia Nikolaeva

CMC Senior Theses

My thesis investigates the impact of environmental, social, and governance (ESG) score disparities between acquirer and target companies on cumulative abnormal returns (CAR) in mergers and acquisitions (M&A) from 2018 to 2022, particularly in light of the COVID-19 pandemic. Using Bloomberg and Refinitiv Eikon datasets, I explore whether the ESG delta between merging firms influences financial outcomes, hypothesizing that higher ESG alignment enhances CAR (cumulative abnormal return). My preliminary findings indicate that larger ESG disparities positively affect acquirer CAR but may reduce target CAR, suggesting that ESG alignment benefits vary by stakeholder and merger dynamics. These results highlight the evolving …

Impact Of Esg Ratings On Company Stock Price Returns, Benjamin Mccormick

Honors College Theses

ESG, Environmental, Social, Governance, is a new business philosophy that asserts that businesses have a duty to the environment, their communities, and to act legally and ethically. ESG rating agencies are built around grading public companies on their fulfillment of these objectives. Critics of ESG cite that ESG dilutes the primary purpose of business, to create value for shareholders. This paper uses regression analysis to test whether these perspectives are mutually exclusive. With stock returns as the dependent variable and ESG ratings as the dependent variable of interest, this paper finds a slight correlation between lower returns and companies in …

Financial Assessment Of Executive Decision-Making And Risk Management: A Case Study Of Autozone, Carolina Hollis

Honors Theses

This area of investigation pertains to the business organizational structure, executive summary, and risk management decisions of AutoZone within the 2022-2023 fiscal year. This analysis was performed by examining previous financial records, the yearly 10-K report, and various research databases regarding the financial performance of retail auto part companies. Many different sources were used to gather information about AutoZone. AutoZone has an intricate financial system that maintains the going concern by addressing current issues within the financial world to combat problems they could face in the future. These risk factors include inflation, interest rates, energy prices, political climates, and supply …

Retail Investors And Corporate Governance: Evidence From Zero-Commission Trading, Dhruv Aggarwal, Albert H. Choi, Yoon-Ho Alex Lee

Law & Economics Working Papers

We examine the effects of the sudden abolition of trading commissions by major online brokerages in 2019, which lowered stock market entry costs for retail investors, on corporate governance. Firms already popular with retail investors experienced positive abnormal returns around the abolition of commissions. Firms with positive abnormal returns in response to commission-free trading subsequently saw a decrease in institutional ownership, a decrease in shareholder voting, and a deterioration in environmental, social, and corporate governance (ESG) metrics. Finally, these firms were more likely to adopt bylaw amendments to reduce the percentage of shares needed for a quorum at shareholder meetings. …

The Effects Of Esg On The Financial Performance Of Aerospace & Defense Companies, Cooper Trimble

Honors Undergraduate Theses

This study examines the relationship between Environmental, Social, and Corporate Governance (ESG) activity and financial performance in the context of firms operating in the Aerospace & Defense industry. As societal pressure increases for companies to adopt ESG and related corporate sustainability practices, it is crucial to understand the repercussions of such adoptions. As the Aerospace & Defense industry continues to grow and capitalize on post-COVID travel booms, military modernization efforts, and increased demand for advanced aerospace technology, it is essential to understand the consequences of ESG implementation. By examining data from 2012 – 2023, this study produced results regarding the …

Meme Corporate Governance, Dhruv Aggarwal, Albert H. Choi, Yoon-Ho Alex Lee

Articles

Can retail investors revolutionize corporate governance and make public companies more responsive to social concerns? Beginning in 2021, there was a dramatic influx of retail investors into the shareholder base of “meme” stock companies such as GameStop, AMC, and Bed Bath & Beyond. Observing the unprecedented, coordinated trading among retail investors, scholars and practitioners predicted that the influx of retail investors would reduce the power of large institutional investors and democratize corporate governance. These predictions were driven by three factors: generational, with assumptions that millennial and Gen Z investors would challenge corporate management; societal, reflecting growing discontent with slow progress …

Esg News, Future Cash Flows, And Firm Value, Francois Derrin, Philipp Krueger, Augustin Landier, Tianhao Yao

Research Collection Lee Kong Chian School Of Business

We investigate the expected consequences of negative ESG news on firms’ future profits. After learning about negative ESG news, analysts significantly downgrade their forecasts at short and longer horizons. Negative ESG news affect forecasts more strongly at longer horizons than other types of negative corporate news. The negative revisions of earnings forecasts following negative ESG news reflect expectations of lower future sales (rather than higher future costs). Quantitatively, forecast revisions can explain most of the negative impacts of ESG news on firm value. Analysts are correct to revise forecasts downward following negative ESG news and ESG sensitive analysts tend to …

But Is It Material? A Case Study Evaluating Climate Risk’S Place In Financial Disclosures, Matilda Lindberg

Student Theses and Dissertations

The year of 2022 highlighted the importance of understanding how Environment, Social, and Governance (hereafter, ESG) factors impact investors. By the end of 2021, 37.8 trillion USD had been invested in ESG funds, a number expected to grow to $53 trillion by the end of 2025. Despite this bullish projection, controversy has grown about the “materiality” of ESG factors, especially climate risks, as defined by the Securities and Exchange Commission (hereafter, SEC). On March 21, 2022, the SEC proposed rules to enhance the standardization of climate- related disclosures (hereafter The Proposal) to promote consistent, comparable, and reliable information for investors …

Meme Corporate Governance, Dhruv Aggarwal, Albert H. Choi, Yoon-Ho Alex Lee

Law & Economics Working Papers

Can retail investors revolutionize corporate governance and make public companies more responsive to social concerns? The U.S. stock market offered an unusual experiment to test the impact of retail investors in 2021, when there was a dramatic influx of retail investors into the shareholder base of companies such as GameStop and AMC. The meme surge phenomenon elicited a variety of reactions from scholars and practitioners. While some worried that affected companies’ share prices were becoming disjointed from their financial fundamentals, others predicted that retail shareholders will reduce the power of large institutional investors and democratize corporate governance. This Article presents …

Redefining The Boundaries Of Firms: Insights From The Corporate Social Responsibility Of The Digital Platform-Based Firms And Stock Returns, Moo Kung Kim

Dissertations and Theses Collection (Open Access)

By using a novel dataset, platform firms (those that operate on apps and the internet as their main vector of operations), this study explores the boundaries of the firm through the lens of corporate social responsibility. By examining the CSR scandals of platform-based firms, the paper aims to answer: ‘How do digital platform firms affect the society and capital market and understand the welfare of stakeholders?’. To disentangle the debates in the literature, the study articulates the new framework of the boundaries and scope of firms by proposing broader stakeholders of firms.

This research attempts to elucidate the boundaries of …

Doing Well While Doing Good? The Cost Of Responsible Investing, Elizabeth Iwicki

CMC Senior Theses

In this paper, I estimate the monthly alpha of highly rated ESG stocks, with the motivation to assess the effects of ESG investors on public equity markets. I hypothesize, consistent with the motivating theory of Heinkel et al. (2001), that the shift in investor preferences toward ESG-friendly investments leads to the underperformance of a broad ESG portfolio relative to a portfolio of comparable stocks. I test my hypothesis using the methodology of Hong and Kacperczyk (2009) and Wallace (2022), where I apply the methods to an ESG portfolio rather than a “sin” portfolio. Consistent with my hypothesis, I find that …

Esg And Intellectual Capital Efficiency: Evidence From Asean Emerging Markets, Etikah Karyani, Muhamad Resa Perdiansyah

Jurnal Akuntansi dan Keuangan Indonesia

This study aims to investigate the impacts of Environmental, Social, and Governance (ESG) in total and individual performance (“E”, “S”, and “G”) on firms’ intellectual capital (IC) efficiency. The Value-Added Intellectual Coefficient (VAIC) and Modified Value-Added Intellectual Coefficient (MVAIC) were used to measure IC efficiency. Meanwhile, the annual ESG index data from the ASEAN-4 were used to measure ESG from 2015 to 2020. The results show “E”, “S”, and “G” and total ESG positively affect firms’ efficiency in managing IC. In addition, the industry type moderates these relationships in terms of that banks have a greater influence than non-banks. Our …

Esg Activities, Political Contributions, And Firm Performance, Ahmed W. Alam

LSU New Orleans Theses and Dissertations

This dissertation is comprised of two distinct empirical papers which I document in two separate chapters. In the first chapter, I empirically examine the impact of banks’ environmental, social, and governance (ESG) practices on banking efficiency. Using a sample of 578 international banks over the years 2011-2019, I employ a data envelopment analysis (DEA) method to estimate banks’ technical efficiency scores. My baseline Tobit regressions reveal that high ESG performance significantly reduces banks’ efficiency. Further, I find that this relationship is non-linear at very high levels of ESG scores. These findings are consistent across the social (S) and governance (G) …

The Sec’S Climate Disclosure Rule: Critiquing The Critics, George S. Georgiev

Faculty Articles

Climate change is an existential phenomenon, which entails a wide variety of physical risks as well as sizeable but underappreciated economic risks. In March 2022, the U.S. Securities and Exchange Commission (SEC) moved to address some of the information gaps related to the effects of climate change on firms by proposing a rule that requires public companies to report detailed and standardized information about important climate-related matters for the benefit of investors and markets. Though the rule proposal was welcomed by many market participants, it was also met with a level of opposition that was unusual in both its intensity …

The Invisible Hurdle: Biases Investors Have Against Sustainable Investing, Kerry E. Ullman

Student Publications

A current trend of many corporations is making it a priority to focus on becoming more socially responsible and ethical in all aspects of their businesses. Investors, on the other hand, have not been as focused on incorporating these issues into their selection criteria, especially when it comes to the issue of sustainable investing (ESG). This research tries to understand what the hidden barriers are that stop individual investors from investing sustainably. This research examines the effect of proper information on sustainable investing and the most effective communication strategies to relay this information to investors. There was a control group …