Browsing by Author "Lindbo, Hanna"

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    Financial Performance of Firms with Low Respectively High ESG Scores - A study of the US Technology sector
    (2019-02-21) Lindbo, Hanna; Salim, Diana; University of Gothenburg/Department of Economics; Göteborgs universitet/Institutionen för nationalekonomi med statistik
    This study investigates the relationship between financial performance and ESG score over a five-year time period, January 2013 to January 2018, in the US market. To examine this, two small cap portfolios is constructed, one consisting of firms with high ESG scores and one with low ESG scores. Additionally, two portfolios are constructed likewise for firms with large market capitalization. Furthermore, Carhart’s four factor model is applied to investigate if there appears to be a difference in the portfolios’ stock performance. Evidence is found that the small cap portfolio with low ESG scores outperformed the small cap portfolio with high ESG scores. Although, no statistical evidence is found whether there is a relationship between stock performance and ESG score for firms with large market capitalization.
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    The impact of mandatory non-financial disclosure and ESG score on financial performance and firm-risk- An empirical study of the Nordic market
    (2021-06-30) Nikkhoo, Tina; Lindbo, Hanna; University of Gothenburg/Graduate School; Göteborgs universitet/Graduate School
    This research investigates the impact of mandatory non-financial disclosure and ESG score on financial performance and firm-risk using a panel of 278 Nordic companies covering the time period 2014-2019. Using a Difference-in-Difference technique, the results imply that the accounting-based financial performance increases subsequent to the EU Directive 2014/95/EU, while the firm-risk is reduced. In addition, using Ordinary-Least-Squares regression analyses, the results show that the financial performance increases from a unit increase in ESG score, while no evidence could be found of a relationship between ESG score and firm-risk. Evaluating the impact of the separated components of ESG, the social score implies to have a positive relationship with financial performance and total risk, while the governance score implies the opposite. The environmental score appears to have no impact on firm-risk, while a positive impact on the accounting-based financial performance.