ESG PERFORMANCE, RISK AND THE (IN)EXISTENCE OF A RISK COMMITTEE IN BRAZILIAN COMPANIES
DOI:
https://doi.org/10.51320/rmc.v24i3.1520Keywords:
ESG, Market risk, Risk committeeAbstract
This study seeks to o analyze the relationship between ESG performance and market risk in Brazilian companies. In order to achieve this objective, data from the Economática® and Refinitiv® databases of 73 companies listed on B3 stock exchange, with a total of 365 observations for the 2017-2021 period. Descriptive statistics, voice analysis, Mann-Whitney mean difference test, multiple correspondence analysis (MCA) and models were estimated Ordinary Least Squares with robust coefficients and standard errors for heteroscedasticity and using Generalized Least Squares for panel data. The descriptive analysis indicates that the companies have better performance in the social and governance aspect, when compared to the environmental aspect. The results of the mean difference test indicate that a risk committee in companies implies higher means for ESG performance, environmental, social and governance performance when there were executives who do not have this advisory body to the board of directors. As for MCA, there were correlations between low ESG scores for companies that do not have a risk committee. The results of the regression analysis indicate that ESG performance and social performance affect workers and market risk. The present study has a contribution of supporting companies, market agents and the scientific community, as in the Brazilian capital market, companies concerned with maintaining high ESG performance scores tend to take less risks.
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Copyright (c) 2023 Alessandra Carvalho de Vasconcelos, Francisca Yasmin de Aguiar Guedes, Daniel Barboza Guimarães, Fernanda Beatryz Rolim Tavares
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