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EXAMINING FIRMS' ESG GRADES DETERMINANTS THROUGH FINANCIAL AND NON-FINANCIAL CHARACTERISTICS DURING COVID-19 IN KOREA.
- Source :
- Journal of Economic Development; Mar2024, Vol. 49 Issue 1, p125-150, 26p
- Publication Year :
- 2024
-
Abstract
- This study employs Ordinary Least Squares (OLS) and quantile regression analyses to examine the determinants of Environmental, Social, and Governance (ESG) grades based on financial and non-financial characteristics of Korean companies amidst the global economic recession triggered by the COVID-19 pandemic. We investigate whether different determinants exist for varying levels of ESG grades (lower, middle, and higher groups). Analyzing cross-sectional data from 660 Korean companies, we find that both financial and non-financial characteristics significantly impacted ESG grades during the pandemic. Key determinants include firm value, size, and cash liquidity in financial characteristics, while firm age and industry type are vital non-financial determinants. Furthermore, the results highlight distinctions among ESG sub-dimensions, revealing that financial attributes predominantly influence environmental grades, whereas both financial and non-financial aspects shape social and governance grades. The findings elucidate ESG grade determinants and their differential relationships with various company characteristics during the challenging COVID-19 period in Korea. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 02548372
- Volume :
- 49
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Journal of Economic Development
- Publication Type :
- Academic Journal
- Accession number :
- 176519553