Effects of ESG practices on the cost of capital of Brazilian companies
Autor(a) principal: | |
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Data de Publicação: | 2023 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | por eng |
Título da fonte: | REUNIR: Revista de Administração. Contabilidade e Sustentabilidade |
Texto Completo: | https://reunir.revistas.ufcg.edu.br/index.php/uacc/article/view/1538 |
Resumo: | The acknowledgement of the need for actions to face the impacts of climate change, diversity and compliance rules leads to an increase in investments by companies that adopt sustainability practices that are becoming relevant for investor’s decisions. In Brazil, the perception of the value of adopting ESG practices is more recent and has been growing, while recognizing that economic development must occur with sustainable progress in the country. This study verifies whether the adoption of sustainability practices leads to a reduction in the cost of capital of 96 Brazilian – non-financial – companies, publicly traded, and with ESG score information for at least 3 years, within the period from 2016 to 2020, using linear multiple regressions by pooled or panel. There is a negative relationship between the environmental component and the cost of third-party capital, which confirms a growing concern on the part of countries about environmental issues. However, with the non-ratification of the hypothesis of reducing the cost of equity capital, it is indicated that creditors are more sensitive to the environmental practices of companies than their shareholders. Thus, unlike developed countries, Brazilian companies and investors are still unable to perceive the financial benefits arising from the adoption of sustainability practices, pointing to opportunities for such investments. |
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Effects of ESG practices on the cost of capital of Brazilian companiesEfeitos das práticas de ESG no custo de capital das empresas brasileirasESG. WACC. CAPM.ESG. WACC. CAPM.The acknowledgement of the need for actions to face the impacts of climate change, diversity and compliance rules leads to an increase in investments by companies that adopt sustainability practices that are becoming relevant for investor’s decisions. In Brazil, the perception of the value of adopting ESG practices is more recent and has been growing, while recognizing that economic development must occur with sustainable progress in the country. This study verifies whether the adoption of sustainability practices leads to a reduction in the cost of capital of 96 Brazilian – non-financial – companies, publicly traded, and with ESG score information for at least 3 years, within the period from 2016 to 2020, using linear multiple regressions by pooled or panel. There is a negative relationship between the environmental component and the cost of third-party capital, which confirms a growing concern on the part of countries about environmental issues. However, with the non-ratification of the hypothesis of reducing the cost of equity capital, it is indicated that creditors are more sensitive to the environmental practices of companies than their shareholders. Thus, unlike developed countries, Brazilian companies and investors are still unable to perceive the financial benefits arising from the adoption of sustainability practices, pointing to opportunities for such investments.O reconhecimento da necessidade de ações para fazer frente aos impactos das mudanças climáticas, de diversidade e regras de compliance leva a um aumento dos investimentos pelas empresas que adotam práticas de sustentabilidade que vêm se tornando relevantes para as decisões de investidores. No Brasil, a percepção sobre o valor da adoção das práticas de ESG é mais recente e vem crescendo, havendo o reconhecimento de que o desenvolvimento econômico deve ocorrer com avanço sustentável no país. Este estudo verifica se a adoção de práticas de sustentabilidade acarreta numa redução do custo de capital de 96 empresas – não financeiras – brasileiras, de capital aberto, e com informações de pontuação ESG de, ao menos, 3 anos no período de 2016 a 2020 utilizando regressões múltiplas lineares por pooled ou painel. Verifica-se a existência de uma relação negativa entre o componente ambiental e o custo do capital de terceiros que confirma uma preocupação crescente dos países sobre as questões ambientais. Porém com a não ratificação da hipótese de redução de custo de capital próprio, indica-se que os credores possuem maior sensibilidade às práticas ambientais das empresas que seus acionistas. Dessa forma, diferentemente dos países desenvolvidos, empresas e investidores brasileiros ainda não conseguem perceber os benefícios financeiros advindos da adoção de práticas de sustentabilidade, apontando oportunidades para tais investimentos.Universidade Federal de Campina Grande2023-06-28info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArtigos avaliado pelos paresapplication/pdfapplication/pdfhttps://reunir.revistas.ufcg.edu.br/index.php/uacc/article/view/153810.18696/reunir.v13i2.1538REUNIR Revista de Administração Contabilidade e Sustentabilidade; v. 13 n. 2 (2023): REUNIR; 197-2172237-366710.18696/reunir.v13i2reponame:REUNIR: Revista de Administração. Contabilidade e Sustentabilidadeinstname:Universidade Federal de Campina Grande (UFCG)instacron:UFCGporenghttps://reunir.revistas.ufcg.edu.br/index.php/uacc/article/view/1538/724https://reunir.revistas.ufcg.edu.br/index.php/uacc/article/view/1538/725Copyright (c) 2023 REUNIR Revista de Administração Contabilidade e Sustentabilidadehttps://creativecommons.org/licenses/by-nc/4.0info:eu-repo/semantics/openAccessBalassiano, Rafael SalimIkeda, Wilson EduardoNascimento Jucá, Michele2023-06-28T16:56:42Zoai:ojs.150.165.111.246:article/1538Revistahttps://reunir.revistas.ufcg.edu.br/index.php/uacc/indexPUBhttps://reunir.revistas.ufcg.edu.br/index.php/uacc/oairevistareunir2021@gmail.com |2237-36672237-3667opendoar:2023-06-28T16:56:42REUNIR: Revista de Administração. Contabilidade e Sustentabilidade - Universidade Federal de Campina Grande (UFCG)false |
dc.title.none.fl_str_mv |
Effects of ESG practices on the cost of capital of Brazilian companies Efeitos das práticas de ESG no custo de capital das empresas brasileiras |
title |
Effects of ESG practices on the cost of capital of Brazilian companies |
spellingShingle |
Effects of ESG practices on the cost of capital of Brazilian companies Balassiano, Rafael Salim ESG. WACC. CAPM. ESG. WACC. CAPM. |
title_short |
Effects of ESG practices on the cost of capital of Brazilian companies |
title_full |
Effects of ESG practices on the cost of capital of Brazilian companies |
title_fullStr |
Effects of ESG practices on the cost of capital of Brazilian companies |
title_full_unstemmed |
Effects of ESG practices on the cost of capital of Brazilian companies |
title_sort |
Effects of ESG practices on the cost of capital of Brazilian companies |
author |
Balassiano, Rafael Salim |
author_facet |
Balassiano, Rafael Salim Ikeda, Wilson Eduardo Nascimento Jucá, Michele |
author_role |
author |
author2 |
Ikeda, Wilson Eduardo Nascimento Jucá, Michele |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Balassiano, Rafael Salim Ikeda, Wilson Eduardo Nascimento Jucá, Michele |
dc.subject.por.fl_str_mv |
ESG. WACC. CAPM. ESG. WACC. CAPM. |
topic |
ESG. WACC. CAPM. ESG. WACC. CAPM. |
description |
The acknowledgement of the need for actions to face the impacts of climate change, diversity and compliance rules leads to an increase in investments by companies that adopt sustainability practices that are becoming relevant for investor’s decisions. In Brazil, the perception of the value of adopting ESG practices is more recent and has been growing, while recognizing that economic development must occur with sustainable progress in the country. This study verifies whether the adoption of sustainability practices leads to a reduction in the cost of capital of 96 Brazilian – non-financial – companies, publicly traded, and with ESG score information for at least 3 years, within the period from 2016 to 2020, using linear multiple regressions by pooled or panel. There is a negative relationship between the environmental component and the cost of third-party capital, which confirms a growing concern on the part of countries about environmental issues. However, with the non-ratification of the hypothesis of reducing the cost of equity capital, it is indicated that creditors are more sensitive to the environmental practices of companies than their shareholders. Thus, unlike developed countries, Brazilian companies and investors are still unable to perceive the financial benefits arising from the adoption of sustainability practices, pointing to opportunities for such investments. |
publishDate |
2023 |
dc.date.none.fl_str_mv |
2023-06-28 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Artigos avaliado pelos pares |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://reunir.revistas.ufcg.edu.br/index.php/uacc/article/view/1538 10.18696/reunir.v13i2.1538 |
url |
https://reunir.revistas.ufcg.edu.br/index.php/uacc/article/view/1538 |
identifier_str_mv |
10.18696/reunir.v13i2.1538 |
dc.language.iso.fl_str_mv |
por eng |
language |
por eng |
dc.relation.none.fl_str_mv |
https://reunir.revistas.ufcg.edu.br/index.php/uacc/article/view/1538/724 https://reunir.revistas.ufcg.edu.br/index.php/uacc/article/view/1538/725 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2023 REUNIR Revista de Administração Contabilidade e Sustentabilidade https://creativecommons.org/licenses/by-nc/4.0 info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2023 REUNIR Revista de Administração Contabilidade e Sustentabilidade https://creativecommons.org/licenses/by-nc/4.0 |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf |
dc.publisher.none.fl_str_mv |
Universidade Federal de Campina Grande |
publisher.none.fl_str_mv |
Universidade Federal de Campina Grande |
dc.source.none.fl_str_mv |
REUNIR Revista de Administração Contabilidade e Sustentabilidade; v. 13 n. 2 (2023): REUNIR; 197-217 2237-3667 10.18696/reunir.v13i2 reponame:REUNIR: Revista de Administração. Contabilidade e Sustentabilidade instname:Universidade Federal de Campina Grande (UFCG) instacron:UFCG |
instname_str |
Universidade Federal de Campina Grande (UFCG) |
instacron_str |
UFCG |
institution |
UFCG |
reponame_str |
REUNIR: Revista de Administração. Contabilidade e Sustentabilidade |
collection |
REUNIR: Revista de Administração. Contabilidade e Sustentabilidade |
repository.name.fl_str_mv |
REUNIR: Revista de Administração. Contabilidade e Sustentabilidade - Universidade Federal de Campina Grande (UFCG) |
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revistareunir2021@gmail.com | |
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