How ESG Ratings Can Affect a Firm’s Cost of Equity
Reynolds Holding
AUGUST 2, 2023
2019) , for example, strong ESG performance correlates positively with higher equity returns and a reduction in downside risk. Our findings challenge the widely held belief that higher ESG ratings always lead to a reduction in the cost of equity financing. Sussman (2019). The Journal of Finance 74 (6), 2789–2837.
Let's personalize your content