Title The impact of esg performance on stock price value /
Translation of Title ASV veiksnių poveikis akcijų kainoms.
Authors Žigaitė, Irina
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Pages 71
Keywords [eng] ESG impact on stock prices, ESG, Environmental, Social, Governance, Ohlson baseline valuation model, Barth and Clinch price valuation model, non-financial indicators impact on stock prices, Panel data regression analysis, financial sector, FGLS, COVID-19
Abstract [eng] The main Purpose of this master thesis is to determine the factors of ESG that impact the stock price value and evaluate the benefits of the ESG score on Stock price. The Master thesis consists of three main parts: the analysis of literature, the research and its results, a conclusion, and recommendations. Literature analysis reviews the development of ESG concept over the years, presents the structure of ESG and ESG scores value. Introduce the variables and methodology of the rating agencies who evaluates and ranks the companies according the ESG performance. Specifies the benefits and disadvantages that companies may experience with the decision to implement the changes and publicly declare its ESG performance. As well as, explains the ESG performance impact on stock prices during the growth and the crisis times. Following the literature analysis, has included the Examination of value relevance model with the inclusions of non-financial information variable to the Price model in order to calculate the ESG performance influence on the stock prices. Data collection from the ESG book rating agency and examination of the Statistical literature to assure the correctness of the data. The performed research: revealed that ESG impact the Stock price of the company. The implementation of ESG in operational company structure may not only increase the stock prices but also reduce the volatility of stock prices in the market during the periods like Covid-19. The conclusions and recommendations: summaries the main concepts of literature analysis as well as the results of the performed research. We believe that the results of the study could give useful knowledge to the companies, investors, and policymakers on how the ESG impacts the company prices and what benefits it brings to each of them.
Dissertation Institution Vilniaus universitetas.
Type Master thesis
Language English
Publication date 2023