Does ESG Disclosure Transparency Help Mitigate the COVID-19 Pandemic Shock? An Empirical Analysis of Listed Firms in the UK

31 Pages Posted: 30 Nov 2020

See all articles by Thi-Hong-Van Hoang

Thi-Hong-Van Hoang

GSCM-Montpellier Business School

Elysé A. Segbotangni

University of Montpellier

Amine Lahiani

University of Orléans

Date Written: November 26, 2020

Abstract

This paper examines whether the transparency in ESG reporting helps listed firms in the UK better mitigate the impact of the COVID-19 pandemic. We investigate 179 listed firms from August 2019 to May 2020. The results show that the performance spread of firms with high ESG disclosure score is less negatively impacted by firm internal and external factors during the COVID-19 pandemic. Furthermore, the ESG transparency helps reduce the volatility. However, we find no evidence that the ESG reporting transparency helps improve the stock performance. Therefore, ESG reporting transparency helps firms better resist to extreme shocks like the COVID-19 pandemic.

Keywords: ESG disclosure; Transparency; COVID-19 pandemic; Performance spread; Investor sentiment

JEL Classification: G3

Suggested Citation

Hoang, Thi-Hong-Van and Segbotangni, Elysé A. and Lahiani, Amine, Does ESG Disclosure Transparency Help Mitigate the COVID-19 Pandemic Shock? An Empirical Analysis of Listed Firms in the UK (November 26, 2020). Available at SSRN: https://ssrn.com/abstract=3738256 or http://dx.doi.org/10.2139/ssrn.3738256

Thi-Hong-Van Hoang (Contact Author)

GSCM-Montpellier Business School ( email )

2300, Avenue des Moulins
Montpellier, 34185
France

Elysé A. Segbotangni

University of Montpellier ( email )

163 rue Auguste Broussonnet
France

Amine Lahiani

University of Orléans ( email )

France

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