This Research Spotlight provides a summary of the academic literature on environmental, social, and governance (ESG) activities including: The relation between ESG activities and firm value, the impact of environmental and social engagements on firm performance, the market reaction to ESG events, and the performance of socially responsible investment (SRI) funds. This Research Spotlight expands upon issues introduced in the Quick Guide Investors and Activism.
Copyright held by David F. Larcker and Brian Tayan. Further inquiries about reproduction and use should be directed to the Corporate Governance Research Initiative.
