Multivariate regression analysis highlights a negative association between ESG performance and earning downside risk, suggesting implications for firms during economic uncertainty.
Key Points
Higher esg performance is associated with reduced earning downside risk, improving corporate stability in uncertain economies.
The study reveals a significant negative correlation between esg performance and downside risk, particularly during the COVID-19 crisis.
Multivariate regression analysis utilized a dataset from Refinitiv, spanning 48 countries over fourteen years.
Findings emphasize the critical role of environmental and social components of esg in mitigating risks in the primary economic sector.