How ESG Ratings Can Affect a Firm’s Cost of Equity
Reynolds Holding
AUGUST 2, 2023
Embracing sustainable practices may introduce new risks, such as regulatory changes, lawsuits, or reputational issues. To account for these potential risks, investors may demand higher returns and a higher COE. Last, evolution in the ESG market and concerns about greenwashing contribute to the relationship. Guenster, R.
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