Major
Business Administration
Anticipated Graduation Year
2023
Access Type
Open Access
Abstract
This research aimed to observe the correlation between ESG and value to investors by comparing stock price change and return on invested capital of 10 “sustainable” companies, as defined by the S&P 500 ESG Index, and 10 non-ESG companies headquartered in the US across five of the 11 stock market sectors. If “sustainable” companies are more valuable to investors, investors may be willing to purchase stocks at a premium, which positively affects the company. Our results showed no findings, meaning that we could not reach any definitive conclusions about the value of ESG to investors from our sample.
Faculty Mentors & Instructors
Dr. Anne Reilly, Quinlan School of Business
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
The Correlation between Environmental, Social, Governance (ESG) and Stock Performance
This research aimed to observe the correlation between ESG and value to investors by comparing stock price change and return on invested capital of 10 “sustainable” companies, as defined by the S&P 500 ESG Index, and 10 non-ESG companies headquartered in the US across five of the 11 stock market sectors. If “sustainable” companies are more valuable to investors, investors may be willing to purchase stocks at a premium, which positively affects the company. Our results showed no findings, meaning that we could not reach any definitive conclusions about the value of ESG to investors from our sample.