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Corporate resilience during crises and the role of ESG factors: Evidence from the COVID-19 pandemic

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  • Walker, Thomas
  • Fernandes, Alisha
  • Karami, Moein

Abstract

This study explores the relationship between environmental, social, and governance (ESG) factors and investor behavior during the COVID-19 crisis, utilizing a sample of S&P 500 companies. Findings suggest that these factors may not have had a significant influence on investment decisions during this period. Despite a notable overall market response to major COVID-19 related events, our findings reveal that ESG factors provide minimal explanatory power for individual stock price returns. This observation invites further investigation into the conditions under which ESG considerations are prioritized by investors.

Suggested Citation

  • Walker, Thomas & Fernandes, Alisha & Karami, Moein, 2024. "Corporate resilience during crises and the role of ESG factors: Evidence from the COVID-19 pandemic," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324011978
    DOI: 10.1016/j.frl.2024.106168
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    Cited by:

    1. Ni, Kejin & Zhang, Rui & Tan, Lei & Lai, Xiaobing, 2024. "How ESG enhances corporate competitiveness: Mechanisms and Evidence," Finance Research Letters, Elsevier, vol. 69(PB).

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    More about this item

    Keywords

    Covid-19; ESG; Financial crisis; Financial performance;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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