The impact of ESG ratings on corporate value during COVID-19 pandemic: evidence from China and South Korea

Donghoon Kim; Sun Joong Yoon

doi:10.1108/JDQS-03-2024-0015

The impact of ESG ratings on corporate value during COVID-19 pandemic: evidence from China and South Korea

Donghoon Kim, Sun Joong Yoon

Department of Business Administration

Korea Advanced Institute of Science and Technology

Research output: Contribution to journal › Article › peer-review

Abstract

The COVID-19 pandemic has significantly disrupted global economies, posing unprecedented business challenges worldwide. This study examines the influence of Environmental, Social, and Governance (ESG) factors on corporate value in the context of the pandemic, focusing on China and South Korea. Using empirical analysis and data from Chinese A-share and South Korean KOSPI-listed companies, our research reveals complex dynamics. ESG had a negative impact on corporate value during the pandemic. However, firms with higher ESG scores demonstrated an insurance effect, mitigating risk. This effect held in both China and South Korea, highlighting the importance of ESG principles for resilience and sustainable growth in contemporary business practices. This research provides implications for ESG-focused businesses during crises.

Original language	English
Pages (from-to)	223-237
Number of pages	15
Journal	Journal of Derivatives and Quantitative Studies
Volume	32
Issue number	3
DOIs	https://doi.org/10.1108/JDQS-03-2024-0015
State	Published - 8 Aug 2024

Keywords

COVID-19
Emerging market
ESG
Insurance effect
Pandemic

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1108/JDQS-03-2024-0015

Cite this

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abstract = "The COVID-19 pandemic has significantly disrupted global economies, posing unprecedented business challenges worldwide. This study examines the influence of Environmental, Social, and Governance (ESG) factors on corporate value in the context of the pandemic, focusing on China and South Korea. Using empirical analysis and data from Chinese A-share and South Korean KOSPI-listed companies, our research reveals complex dynamics. ESG had a negative impact on corporate value during the pandemic. However, firms with higher ESG scores demonstrated an insurance effect, mitigating risk. This effect held in both China and South Korea, highlighting the importance of ESG principles for resilience and sustainable growth in contemporary business practices. This research provides implications for ESG-focused businesses during crises.",

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AB - The COVID-19 pandemic has significantly disrupted global economies, posing unprecedented business challenges worldwide. This study examines the influence of Environmental, Social, and Governance (ESG) factors on corporate value in the context of the pandemic, focusing on China and South Korea. Using empirical analysis and data from Chinese A-share and South Korean KOSPI-listed companies, our research reveals complex dynamics. ESG had a negative impact on corporate value during the pandemic. However, firms with higher ESG scores demonstrated an insurance effect, mitigating risk. This effect held in both China and South Korea, highlighting the importance of ESG principles for resilience and sustainable growth in contemporary business practices. This research provides implications for ESG-focused businesses during crises.

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The impact of ESG ratings on corporate value during COVID-19 pandemic: evidence from China and South Korea

Abstract

Keywords

UN SDGs

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