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ESG Disclosure and Portfolio Performance

Author

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  • Ramón Bermejo Climent

    (Faculty of Economics and Business Administration (ICADE), Universidad Pontificia Comillas, C/Alberto Aguilera, 23, 28015 Madrid, Spain)

  • Isabel Figuerola-Ferretti Garrigues

    (Faculty of Economics and Business Administration (ICADE), Universidad Pontificia Comillas, C/Alberto Aguilera, 23, 28015 Madrid, Spain)

  • Ioannis Paraskevopoulos

    (Faculty of Economics and Business Administration (ICADE), Universidad Pontificia Comillas, C/Alberto Aguilera, 23, 28015 Madrid, Spain)

  • Alvaro Santos

    (Faculty of Economics and Business Administration (ICADE), Universidad Pontificia Comillas, C/Alberto Aguilera, 23, 28015 Madrid, Spain)

Abstract

This paper illustrates the impact of Environmental Social and Governance (ESG) disclosure on European corporate equity performance. In this study, we use an extensive data set of European ESG ratings provided by Bloomberg to demonstrate that ESG disclosure is associated with improved return growth, with the Governance pillar exhibiting the strongest effect on corporate performance. The impact of ESG disclosure on volatility is changing over time, suggesting that the existence of opaque ratings limits the transmission of information disclosure into corporate performance.

Suggested Citation

  • Ramón Bermejo Climent & Isabel Figuerola-Ferretti Garrigues & Ioannis Paraskevopoulos & Alvaro Santos, 2021. "ESG Disclosure and Portfolio Performance," Risks, MDPI, vol. 9(10), pages 1-14, September.
    • Handle: RePEc:gam:jrisks:v:9:y:2021:i:10:p:172-:d:641841
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    References listed on IDEAS

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    Cited by:

    1. Rendani Mavis Matakanye & Huibrecht Margaretha van der Poll & Binganidzo Muchara, 2021. "Do Companies in Different Industries Respond Differently to Stakeholders’ Pressures When Prioritising Environmental, Social and Governance Sustainability Performance?," Sustainability, MDPI, vol. 13(21), pages 1-22, October.
    2. Dedi Kusmayadi & Irman Firmansyah & Wildan Dwi Dermawan & Kurniawan Kurniawan, 2024. "Does an Energy Company’s Sensitivity Affect its Performance?: Environmental, Social and Governance Analysis in Coal, Gas, Oil, and Basic Materials Industry Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 234-243, March.
    3. Francesco Cesarone & Manuel Luis Martino & Federica Ricca & Andrea Scozzari, 2023. "Managing ESG Ratings Disagreement in Sustainable Portfolio Selection," Papers 2312.10739, arXiv.org.
    4. Francesco Cesarone & Manuel Luis Martino & Alessandra Carleo, 2022. "Does ESG Impact Really Enhance Portfolio Profitability?," Sustainability, MDPI, vol. 14(4), pages 1-28, February.
    5. Kadarisman Hidayat & Diana Zuhroh, 2023. "The Impact of Environmental, Social and Governance, Sustainable Financial Performance, Ownership Structure, and Composition of Company Directors on Tax Avoidance: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 311-320, November.
    6. Luigi Aldieri & Alessandra Amendola & Vincenzo Candila, 2023. "The Impact of ESG Scores on Risk Market Performance," Sustainability, MDPI, vol. 15(9), pages 1-16, April.

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