ESG ratings and stock performance in the internet industry
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Received November 29, 2023;Accepted January 12, 2024;Published January 17, 2024
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Author(s)Lan Wang , Zhenyuan Weng ,Link to ORCID Index: https://orcid.org/0000-0002-5914-6974Link to ORCID Index: https://orcid.org/0000-0003-2964-0733
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DOIhttp://dx.doi.org/10.21511/imfi.21(1).2024.04
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Article InfoVolume 21 2024, Issue #1, pp. 38-50
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Cited by3 articlesJournal title: Investment Management and Financial InnovationsArticle title: The impact of investor sentiment on stock liquidity of listed companies in ChinaDOI: 10.21511/imfi.21(2).2024.01Volume: 21 / Issue: 2 / First page: 1 / Year: 2024Contributors: Lu Xu, Chunxiao Xue, Jianing ZhangJournal title: Investment Management and Financial InnovationsArticle title: ESG practices disclosure and initial performance of Malaysian IPOSDOI: 10.21511/imfi.21(3).2024.17Volume: 21 / Issue: 3 / First page: 199 / Year: 2024Contributors: Siti Sarah Alyasa-Gan, Norliza Che-Yahya, Nur Zahidah BahrudinJournal title: Foreign trade: economics, finance, lawArticle title: КОНЦЕНТРАЦІЯ КАПІТАЛУ: МЕРЕЖЕВО-ЦИФРОВИЙ ВИМІРDOI: 10.31617/3.2024(133)04Volume: 133 / Issue: 2 / First page: 66 / Year: 2024Contributors: Юрій ШВЕД, Богдан ТИТИШ
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Amidst the escalating emphasis on sustainable development, numerous corporations and organizations have intensified their environmental, social, and governance (ESG) efforts. The internet sector, intrinsically linked to the ESG domain, has consequently garnered amplified scrutiny. This study delves into the correlation between ESG ratings and the stock performance of publicly listed Chinese companies in the internet sector from 2016 to 2020. The findings reveal that initiatives in the ESG sphere significantly and negatively influence stock performance in these firms, assessed through raw stock returns, stock excess returns relative to the market index, Jensen’s one-factor alpha, and the Fama-French three-factor alpha. This inverse correlation between ESG ratings and stock performance is nonlinear and convex, indicating a lessening negative impact at elevated ESG levels. Moreover, this adverse effect is more pronounced in value stocks compared to growth stocks. Predominantly manifesting before 2018, this negative trend diminishes amidst the COVID-19 period. The reverse causality analysis employing lagged ESG ratings suggests that higher ESG ratings precipitate reduced stock performance, as opposed to vice versa. This study bridges a gap in the existing literature concerning ESG and stock performance specific to the Chinese internet industry and proposes recommendations for its sustainable evolution.
Acknowledgment
This research was supported by the Department of Education of Zhejiang Province General Program (Y202249981, Y202353438), the Wenzhou Association for Science and Technology – Service and Technology Innovation Program (jczc0254), the Wenzhou-Kean University Student Partnering with Faculty Research Program (WKUSPF2023004), the Wenzhou-Kean University International Collaborative Research Program (ICRP2023002, ICRP2023004), and the Wenzhou-Kean University Internal Research Support Program (IRSPG202205, IRSPG202206).
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JEL Classification (Paper profile tab)G11, G12, G15, Q56
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References44
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Tables7
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Figures0
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- Table 1. Descriptive statistics
- Table 2. Pairwise correlations between variables
- Table 3. Baseline regressions
- Table 4. Nonlinear quadratic regressions
- Table 5. Moderating effects of control variables
- Table 6. Subperiod analysis
- Table 7. Reverse causality analysis
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Conceptualization
Lan Wang, Jianing Zhang
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Data curation
Lan Wang
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Formal Analysis
Lan Wang, Zhenyuan Weng, Chunxiao Xue, Jianing Zhang
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Investigation
Lan Wang, Zhenyuan Weng, Chunxiao Xue, Jianing Zhang
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Methodology
Lan Wang, Zhenyuan Weng, Chunxiao Xue, Jianing Zhang
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Resources
Lan Wang
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Software
Lan Wang, Zhenyuan Weng
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Visualization
Lan Wang
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Writing – original draft
Lan Wang
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Validation
Zhenyuan Weng, Chunxiao Xue, Jianing Zhang
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Writing – review & editing
Zhenyuan Weng, Chunxiao Xue, Jianing Zhang
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Funding acquisition
Chunxiao Xue, Jianing Zhang
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Project administration
Chunxiao Xue, Jianing Zhang
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Supervision
Chunxiao Xue, Jianing Zhang
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Conceptualization
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The impact of social distancing policy on small and medium-sized enterprises (SMEs) in Indonesia
Muhtar Lutfi , Pricylia Chintya Dewi Buntuang , Yoberth Kornelius , Erdiyansyah , Bakri Hasanuddin doi: http://dx.doi.org/10.21511/ppm.18(3).2020.40Problems and Perspectives in Management Volume 18, 2020 Issue #3 pp. 492-503 Views: 3760 Downloads: 1352 TO CITE АНОТАЦІЯThis study aims to investigate the impact of social distancing policies on SMEs in Indonesia. It used a quantitative method with a survey design. Respondents were all SMEs in Indonesia that are affected by social distancing policies during the COVID-19 pandemic. It involved a total of 587 SME samples selected randomly. The data were collected through observations, questionnaires, and literature studies. The collected data were analyzed using descriptive statistics with SPSS software to determine the mean value. The result showed that social distancing policies affect SMEs during the COVID-19 pandemic. This is indicated by the decreasing income and demand for SMEs products, and even some have no income (mean values of 2.40) due to the social distancing policies. Besides, the policy’s impact is also shown in the increasing cost of raw materials and production costs due to supply chain problems (mean values of 4.79). The policy’s impact raises anxiety for SMEs to survive so that business actors change their plans by utilizing information technology (mean values of 4.81). This change is a strategy to survive due to the impact of the applied policies. Although social distancing policies affect SMEs’ survival during the pandemic, research findings show that SMEs in Indonesia did not terminate employment (mean values of 4.37) due to the presence of economic stimulus policies that helped SMEs survive and grow during the COVID-19 pandemic.
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The impact of the COVID-19 pandemic on retailer performance: empirical evidence from India
Amgad S.D. Khaled , Nabil Mohamed Alabsy , Eissa A. Al-Homaidi , Abdulmalek M.M. Saeed doi: http://dx.doi.org/10.21511/im.16(4).2020.11Innovative Marketing Volume 16, 2020 Issue #4 pp. 129-138 Views: 3430 Downloads: 5865 TO CITE АНОТАЦІЯThe study aims to synthesize the challenges that retailers are facing during the COVID-19 emergency. The research is definitive, informative, and based on a single design of cross-sectional research. Quantitative data based on the research instrument were produced (a questionnaire). Five hundred responses were collected from employees of major retail stores in India. Retailer performance is considered a dependent variable, whereas employee well-being, customer and brand protection, use of technology, government policies, and supply chain are used as independent variables. The current study results indicated that employee well-being and government policies have a significant positive impact on retailer performance, while customer and brand protection, use of technology, and supply chain have a significant positive impact on retailers’ performance. This study will help retailers develop strategies for their employees to protect them and understand that technology is needed in the new normal times. This study highlights the need to be flexible in executing strategic strategies, but retailers need to develop comprehensive action plans, including selecting managers of initiative and defining goals and deadlines. Provided that retailers’ current reality is different from the old normal, no time is lost in taking audacious action.
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The impact of quarantine due to COVID-19 pandemic on the tourism industry in Lviv (Ukraine)
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 194-205 Views: 3013 Downloads: 1199 TO CITE АНОТАЦІЯThe global crisis caused by COVID-19 pandemic and the introduction of long-term international quarantine measures have had a very negative impact on the tourism industry. The paper aims to analyze the sectoral losses of the tourism industry during quarantine due to the COVID-19 pandemic in Lviv, a city whose historical center is included in the UNESCO World Heritage Site. The article highlights the potential of the tourism industry before the introduction of quarantine measures, as well as using extrapolation methods estimates the economic losses of the tourist industry of Lviv in the conditions of long-term quarantine. Besides, the anti-crisis measures of the city authorities to minimize the impact of quarantine due to COVID-19 pandemic on the tourism industry of Lviv are described. Based on a statistical analysis of the forecasted economic losses, it is recommended that city authorities abolish some local taxes and fees in the tourism sector to restore its potential as soon as possible.