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A legal origins perspective on ESG rating disagreement

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  • Kurbus, Barbara
  • Rant, Vasja

Abstract

Firms’ environmental, social, and governance (ESG) scores vary significantly across rating providers. This article considers the legal origins theory as a potential factor influencing ESG rating disagreement. By comparing ESG scores from five reputable rating providers – Bloomberg, S&P Global, LSEG, MSCI, and Sustainalytics – for a sample of 2392 public firms incorporated across 53 countries, we find that correlation disagreement between rating providers is lower for civil law firms, while dispersion disagreement across rating providers is lower for common law firms. This suggests, firstly, that civil law firms are influenced more by shared factors such as national policies, regulations and industry practices, leading to higher correlations in ESG scores between rating providers, and secondly, that common law firms engage in more independent and firm-specific ESG efforts, resulting in lower ESG dispersion across rating providers.

Suggested Citation

  • Kurbus, Barbara & Rant, Vasja, 2025. "A legal origins perspective on ESG rating disagreement," Research in International Business and Finance, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:riibaf:v:74:y:2025:i:c:s0275531924004951
    DOI: 10.1016/j.ribaf.2024.102702
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    2. Xie, Ting & Chaudhuri, Kausik & Jin, Han & Shin, Yongcheol, 2026. "Systematic common components in ESG ratings across legal origins," International Review of Financial Analysis, Elsevier, vol. 109(C).

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