Do ESG Scores Affect Stock Returns?
Faculty Mentor(s) Name(s)
Brooke Conaway
Abstract
According to Deloitte, “ESG-mandated assets could make up half of all professionally managed investments by 2025, totaling $35 trillion”. Environmental, Social, Governance (ESG) investing has grown dramatically in recent years and shows no signs of slowing down. Using Bloomberg ESG Disclosure scores for companies in the S&P 100 index, I estimate the effect that ESG disclosure scores have on stock returns. Previous studies focused on China and the United Kingdom have found mixed evidence of a positive effect. I have found no statistical significance of ESG scores on stock returns.
Start Date
27-3-2024 1:40 PM
End Date
27-3-2024 1:48 PM
Location
Atkinson 107
Do ESG Scores Affect Stock Returns?
Atkinson 107
According to Deloitte, “ESG-mandated assets could make up half of all professionally managed investments by 2025, totaling $35 trillion”. Environmental, Social, Governance (ESG) investing has grown dramatically in recent years and shows no signs of slowing down. Using Bloomberg ESG Disclosure scores for companies in the S&P 100 index, I estimate the effect that ESG disclosure scores have on stock returns. Previous studies focused on China and the United Kingdom have found mixed evidence of a positive effect. I have found no statistical significance of ESG scores on stock returns.