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All you need is G(overnance): Sustainable Finance Following Ambrogio Lorenzetti's Frescoes

Author

Listed:
  • Costanza Consolandi

    (University of Siena)

  • Giovanni Ferri

    (LUMSA University)

  • Andrea Roncella

    (Fondazione RUI)

Abstract

This paper takes at firm level the inspiration of the Allegory of the Good and Bad Government, the 14th century series of frescoes by Ambrogio Lorenzetti. Namely, we investigate whether a good corporate governance stabilizes financial performance and whether such superior governance improves ‘ESG (Environmental, Social, Governance) resilience’ against controversies related to sustainability issues. Using a large sample of European listed firms from 2006 to 2019, we find that a good governance is the key factor not only in getting ESG controversies managed, therefore increasing firm sustainability resilience, but also in reducing equity volatility, therefore stabilizing firm financial performance.

Suggested Citation

  • Costanza Consolandi & Giovanni Ferri & Andrea Roncella, 2022. "All you need is G(overnance): Sustainable Finance Following Ambrogio Lorenzetti's Frescoes," SERIES 01-2022, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Jul 2022.
    • Handle: RePEc:bai:series:series_wp_01-2022
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    References listed on IDEAS

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    More about this item

    Keywords

    Corporate governance; financial performance; ESG resilience;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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