ESG Performance of Multinational Companies and Stock Price Crash: Evidence from Korea

• 영문명: ESG Performance of Multinational Companies and Stock Price Crash: Evidence from Korea
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Jeong Hwan Lee Jin Hyung Cho Bong Joon Kim
• 간행물 정보: 『Journal of Economic Integration』제37권 제3호, 523~539쪽, 전체 17쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.09.30

영문 초록

Our research focuses on the relationship between the ESG performance of South Korean multinational companies and stock price crash in next year. For our study, we divide samples into three different categories - namely, all companies, multinational companies (MNC) and non-multinational companies(non-MNC). Our major findings are as following. First, we find the negative relationship between the social (S) score of multinational companies and future price crash, indicating that their social performance prevents price crash risk. Second, when individual ESG performance is considered, there exists negative relationship between environmental (E) and social (S) score, and future price crash for multinational companies. Lastly, we find negative relationship between the ESG score and future price crash, which is due to the high environmental (E) and social (S) score of MNCs, which, in turn, raise each respective score for all companies, which has high correlation with their ESG scores. In this research, focusing on features of ESG on price crash in Korean MNCs, we identify the mitigating effect of social (S) factor for the MNC, which is in consistence with previous researches.

목차

Ⅰ. Introduction

Ⅱ. Literature Review

Ⅲ. Data and Methodology

Ⅳ. Empirical Results

Ⅴ. Conclusion

References

키워드

ESG Multinational Companies Korea Stock Price Crash