IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-981-99-0490-7_4.html
   My bibliography  Save this book chapter

Impact of ESG Performance on Firms Default Risk

In: Contemporary Economic Issues in Asian Countries: Proceeding of CEIAC 2022, Volume 2

Author

Listed:
  • Sharmila Nasrin

    (Rajagiri Business School)

  • R. Sreejith

    (Rajagiri College of Social Science)

Abstract

This study investigates the impact of Environmental, Social, and Governance (ESG) performance on firms’ default risk. Our findings were based on a sample of 2302 Indian companies from the year 2014–21. A direct relationship was found wherein the firms with higher ESG performances had higher chances of default. Two reasons could explain the anomaly reported for the Indian market. Firms might try to inflate ESG performance through greenwashing. Second, the ESG performances computed by Refinitiv might require calibration to be appropriate for emerging markets like India. In either scenario, ESG performances as they are calculated now are not a true representation of firm sustainability.

Suggested Citation

  • Sharmila Nasrin & R. Sreejith, 2023. "Impact of ESG Performance on Firms Default Risk," Springer Books, in: An Thinh Nguyen & Thu Thuy Pham & Joon Song & Yen-Ling Lin & Manh Cuong Dong (ed.), Contemporary Economic Issues in Asian Countries: Proceeding of CEIAC 2022, Volume 2, pages 39-48, Springer.
    • Handle: RePEc:spr:sprchp:978-981-99-0490-7_4
    DOI: 10.1007/978-981-99-0490-7_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-981-99-0490-7_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.