{"id":8358,"date":"2020-07-09T08:45:00","date_gmt":"2020-07-09T07:45:00","guid":{"rendered":"http:\/\/www.economicsobservatory.com\/ongoing-research\/do-environmental-societal-and-governance-esg-efforts-make-firms-less-vulnerable-to-financial-market-shocks-evidence-from-the-covid-19-pandemic"},"modified":"2020-07-09T08:45:00","modified_gmt":"2020-07-09T07:45:00","slug":"do-environmental-societal-and-governance-esg-efforts-make-firms-less-vulnerable-to-financial-market-shocks-evidence-from-the-covid-19-pandemic","status":"publish","type":"ongoing-research","link":"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/do-environmental-societal-and-governance-esg-efforts-make-firms-less-vulnerable-to-financial-market-shocks-evidence-from-the-covid-19-pandemic","title":{"rendered":"Do Environmental, Societal, and Governance (ESG) efforts make firms less vulnerable to financial market shocks? Evidence from the Covid-19 pandemic"},"content":{"rendered":"<p>Previous research indicates that stocks of companies endowed with high levels of Environmental, Societal, and Governance (ESG) responsibility characteristics fared better during the financial crisis of 2008-2009. But it is not known why this happens, or whether it applies to other systematic crises of different type. To add new knowledge on this issue, we utilize the Covid-19 pandemic as a financial shock, and develop new methodology for estimating firms\u2019 systematic risk, specifically designed for identifying the effects of market crash and the role of ESG in stock price response. This provides an important independent test of the \u201cMore ESG, less crash\u201d -hypothesis, as well as helps shed light on its mechanism.<\/p>\n<p><\/p>\n","protected":false},"template":"","categories":[],"frequency":[],"type_of_data":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Do Environmental, Societal, and Governance (ESG) efforts make firms less vulnerable to financial market shocks? Evidence from the Covid-19 pandemic - Economics Observatory<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/do-environmental-societal-and-governance-esg-efforts-make-firms-less-vulnerable-to-financial-market-shocks-evidence-from-the-covid-19-pandemic\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Do Environmental, Societal, and Governance (ESG) efforts make firms less vulnerable to financial market shocks? Evidence from the Covid-19 pandemic - Economics Observatory\" \/>\n<meta property=\"og:description\" content=\"Previous research indicates that stocks of companies endowed with high levels of Environmental, Societal, and Governance (ESG) responsibility characteristics fared better during the financial crisis of 2008-2009. But it is not known why this happens, or whether it applies to other systematic crises of different type. 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