A1 Journal article (refereed)
ESG performance and sustainability concerns exposure (2025)

Vu, T. N. (2025). ESG performance and sustainability concerns exposure. Finance Research Letters, 71, Article 106434. https://doi.org/10.1016/j.frl.2024.106434

JYU authors or editors

Publication details

All authors or editors: Vu, Thanh Nam

Journal or series: Finance Research Letters

ISSN: 1544-6123

eISSN: 1544-6131

Publication year: 2025

Publication date: 06/11/2024

Volume: 71

Article number: 106434

Publisher: Elsevier

Publication country: United States

Publication language: English

DOI: https://doi.org/10.1016/j.frl.2024.106434

Publication open access: Openly available

Publication channel open access: Partially open access channel

Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/98257

Abstract

This paper analyzes stock returns' sensitivity to the newly introduced sustainability concerns index based on media indicators from LSEG MarketPsych for the US market from 2010 to 2023. While the results demonstrate that better ESG performance mitigates equities' sensitivity to sustainability concerns in society, the effects are mainly driven by firms' governance rather than environmental or social performance. This study underscores the vital role of good governance and management among ESG criteria for firms in promoting the stability of stock returns to changes in public concerns regarding sustainability issues.

Keywords: responsible investing; responsibility (properties); security market; investment activities; endurance; sustainable development

Free keywords: ESG; ESG risk; sustainability; corporate governance; public concerns

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JUFO rating: 1

Preliminary JUFO rating: 1