{"title":"Does Environmental Investment Pay Off? – Portfolio Analyses of the E in ESG during Political Conflicts and Public Health Crises","authors":"Jiancheng Shen, Chen Chen, Zheng Liu","doi":"10.1111/jfir.12357","DOIUrl":null,"url":null,"abstract":"Abstract This paper examines the contribution of environmental investment on firm value during the Russia‐Ukraine War and Global Public Health Crisis. Using media‐based environmental scores, we investigate the performance of the emission‐reduction‐based and green‐innovation‐based portfolios. The results indicate that while engaging in environmental activities decreases firm value during the noncrisis time, it creates value when companies face market‐wide crises. Our findings suggest that environmental investment serves as a risk‐hedging vehicle for political and health crises. In addition, compared to corporate ESG disclosures, firm‐level media‐based environmental scores mitigate the endogeneity between a company's ESG disclosure policies and its firm characteristics.","PeriodicalId":47584,"journal":{"name":"Journal of Financial Research","volume":null,"pages":null},"PeriodicalIF":1.5000,"publicationDate":"2023-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Financial Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1111/jfir.12357","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Abstract This paper examines the contribution of environmental investment on firm value during the Russia‐Ukraine War and Global Public Health Crisis. Using media‐based environmental scores, we investigate the performance of the emission‐reduction‐based and green‐innovation‐based portfolios. The results indicate that while engaging in environmental activities decreases firm value during the noncrisis time, it creates value when companies face market‐wide crises. Our findings suggest that environmental investment serves as a risk‐hedging vehicle for political and health crises. In addition, compared to corporate ESG disclosures, firm‐level media‐based environmental scores mitigate the endogeneity between a company's ESG disclosure policies and its firm characteristics.
期刊介绍：
The Journal of Financial Research(JFR) is a quarterly academic journal sponsored by the Southern Finance Association (SFA) and the Southwestern Finance Association (SWFA). It has been continuously published since 1978 and focuses on the publication of original scholarly research in various areas of finance such as investment and portfolio management, capital markets and institutions, corporate finance, corporate governance, and capital investment. The JFR, also known as the Journal of Financial Research, provides a platform for researchers to contribute to the advancement of knowledge in the field of finance.
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