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Does ESG certification add firm value?

Wong, Woei Chyuan and Batten, Jonathan A. and Ahmad, Abd Halim @ Hamilton and Mohamed Arshad, Shamsul Bahrain and Nordin, Sabariah and Abdul Adzis, Azira (2020) Does ESG certification add firm value? Finance Research Letters. pp. 1-18. ISSN 15446123

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This paper examines the impact of environmental, social and governance (ESG) certification on Malaysian firms. The analysis shows that ESG certification lowers a firm's cost of capital, while Tobin's Q increases significantly. These findings, while consistent with existing studies in developed economies, demonstrate the value enhancement from corporate social responsibility disclosure by firms in emerging and developing nations. Overall, the study confirms the benefits to stakeholders from firms pursuing an ESG agenda.

Item Type: Article
Uncontrolled Keywords: Cost of capitalCorporate social responsibilityEmerging marketsEnvironmental, social and governance certificationESGMalaysia
Subjects: H Social Sciences > HG Finance
Divisions: School of Economics, Finance & Banking
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 16 Jun 2020 01:40
Last Modified: 04 Nov 2020 03:00

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