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Determinants and effects of country ESG controversy

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  • Beckmann, Joscha
  • Rogmann, Jennifer

Abstract

This paper provides a new perspective on the economic implications of Environmental, Social, and Governance (ESG) ratings. Using data for 152 countries, we introduce a new country measure which reflects controversies regarding ESG performance based on media coverage in real time. We evaluate our measure at the country and global level and over different frequencies, and illustrate that global ESG controversy is positively related to established policy uncertainty measures, but also displays distinct dynamics. In a second step, we evaluate cross-country determinants and show that political determinants, the structure of the energy sector, and GDP per capita affect ESG controversies. Finally, we show that ESG controversery has significant effects on the global level.

Suggested Citation

  • Beckmann, Joscha & Rogmann, Jennifer, 2024. "Determinants and effects of country ESG controversy," Energy Economics, Elsevier, vol. 131(C).
    • Handle: RePEc:eee:eneeco:v:131:y:2024:i:c:s0140988324000343
    DOI: 10.1016/j.eneco.2024.107326
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    3. Vu, Thanh Nam, 2025. "ESG performance and sustainability concerns exposure," Finance Research Letters, Elsevier, vol. 71(C).

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    Keywords

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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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