The impact of ESG performance on shareholder value during market turmoil caused by COVID-19
Autor(a) principal: | |
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Data de Publicação: | 2020 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/35269 |
Resumo: | The global economic downturn triggered by the ongoing coronavirus disease 2019 (COVID-19) has been reflected in stock markets around the world. This paper examines whether a sustainable use of resources, proxied by ESG scores, can contribute to share price resilience during the COVID-19 crisis. By also analysing the durability of earnings per share (EPS) analyst consensus forecasts during the first five months in 2020, a statement can be made on where potential differences in share price returns are originated. For the analysis I utilize a sample of S&P 500 firms in the USA, and control for industry affiliation, firm size, leverage, stock price volatility, and earnings surprises were utilized. I find that environmental activities positively affect actual and abnormal share price returns in the first period, from January 01, 2020 to March 23, 2020 . None of the other scores offer explanatory power for returns. In the recovery phase, from March to May, a negative link between ESG dimensions and stock price returns can be established. This finding, combined with the insight that generally no relationship can be determined between the ESG dimensions and EPS forecasts, leads to the conclusion that investors seem to attach greater importance to performance aspects like liquidity and short-term profitability during the turmoil. |
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The impact of ESG performance on shareholder value during market turmoil caused by COVID-19COVID-19ESGStock marketDomínio/Área Científica::Ciências Sociais::Economia e GestãoThe global economic downturn triggered by the ongoing coronavirus disease 2019 (COVID-19) has been reflected in stock markets around the world. This paper examines whether a sustainable use of resources, proxied by ESG scores, can contribute to share price resilience during the COVID-19 crisis. By also analysing the durability of earnings per share (EPS) analyst consensus forecasts during the first five months in 2020, a statement can be made on where potential differences in share price returns are originated. For the analysis I utilize a sample of S&P 500 firms in the USA, and control for industry affiliation, firm size, leverage, stock price volatility, and earnings surprises were utilized. I find that environmental activities positively affect actual and abnormal share price returns in the first period, from January 01, 2020 to March 23, 2020 . None of the other scores offer explanatory power for returns. In the recovery phase, from March to May, a negative link between ESG dimensions and stock price returns can be established. This finding, combined with the insight that generally no relationship can be determined between the ESG dimensions and EPS forecasts, leads to the conclusion that investors seem to attach greater importance to performance aspects like liquidity and short-term profitability during the turmoil.A queda económica global despoletada pela presente pandemia de COVID-19 tem impactuado o mercado de ações, por tudo o mundo. Esta dissertação investiga se o uso de recursos sustentáveis poderá contribuir para resiliência do preço das ações durante a crise do COVID-19, usando pontuações ESG como proxy. Analisando igualmente o consenso entre especialistas sobre as projeções realizadas durante os primeiros cinco meses de 2020 relativamente à durabilidade do resulto líquido por ação, é possível concluir sobre potenciais diferenças nos retornos por ação gerados. Utilizei uma amostra de empresas presentes no S&P 500 nos EUA, controlando por afiliação da indústria, dimensão da empresa, endividamento, volatilidade no preço por ação, e lucros não esperados. Deste modo, pude concluir que atividades ambientais impactam positivamente no preço atual e irregular das ações no primeiro período. Nenhuma das restantes pontuações parecem explicar os retornos. Durante a fase de recuperação, entre março e maio, existe uma tendência negativa entre dimensões ESG e o retorno das ações. A presente conclusão, em conjunto com conhecimento de que, na generalidade, não existe uma relação entre as dimensões ESG e estimativas sobre o lucro por ação, levam à conclusão de que os investidores parecem atribuir maior importância a aspetos referentes ao desempenho, como liquidez e lucratividade de curto prazo durante a crise.Kalogirou, FaniVeritati - Repositório Institucional da Universidade Católica PortuguesaWerner, Maximilian Gerd2021-09-28T13:08:16Z2021-01-262020-122021-01-26T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/35269TID:202656454enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:40:46Zoai:repositorio.ucp.pt:10400.14/35269Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:28:38.472465Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The impact of ESG performance on shareholder value during market turmoil caused by COVID-19 |
title |
The impact of ESG performance on shareholder value during market turmoil caused by COVID-19 |
spellingShingle |
The impact of ESG performance on shareholder value during market turmoil caused by COVID-19 Werner, Maximilian Gerd COVID-19 ESG Stock market Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
The impact of ESG performance on shareholder value during market turmoil caused by COVID-19 |
title_full |
The impact of ESG performance on shareholder value during market turmoil caused by COVID-19 |
title_fullStr |
The impact of ESG performance on shareholder value during market turmoil caused by COVID-19 |
title_full_unstemmed |
The impact of ESG performance on shareholder value during market turmoil caused by COVID-19 |
title_sort |
The impact of ESG performance on shareholder value during market turmoil caused by COVID-19 |
author |
Werner, Maximilian Gerd |
author_facet |
Werner, Maximilian Gerd |
author_role |
author |
dc.contributor.none.fl_str_mv |
Kalogirou, Fani Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Werner, Maximilian Gerd |
dc.subject.por.fl_str_mv |
COVID-19 ESG Stock market Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
COVID-19 ESG Stock market Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
The global economic downturn triggered by the ongoing coronavirus disease 2019 (COVID-19) has been reflected in stock markets around the world. This paper examines whether a sustainable use of resources, proxied by ESG scores, can contribute to share price resilience during the COVID-19 crisis. By also analysing the durability of earnings per share (EPS) analyst consensus forecasts during the first five months in 2020, a statement can be made on where potential differences in share price returns are originated. For the analysis I utilize a sample of S&P 500 firms in the USA, and control for industry affiliation, firm size, leverage, stock price volatility, and earnings surprises were utilized. I find that environmental activities positively affect actual and abnormal share price returns in the first period, from January 01, 2020 to March 23, 2020 . None of the other scores offer explanatory power for returns. In the recovery phase, from March to May, a negative link between ESG dimensions and stock price returns can be established. This finding, combined with the insight that generally no relationship can be determined between the ESG dimensions and EPS forecasts, leads to the conclusion that investors seem to attach greater importance to performance aspects like liquidity and short-term profitability during the turmoil. |
publishDate |
2020 |
dc.date.none.fl_str_mv |
2020-12 2021-09-28T13:08:16Z 2021-01-26 2021-01-26T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/35269 TID:202656454 |
url |
http://hdl.handle.net/10400.14/35269 |
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TID:202656454 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
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info:eu-repo/semantics/openAccess |
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openAccess |
dc.format.none.fl_str_mv |
application/pdf |
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reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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