This article examines the risk and return profiles of stock indices composed of companies meeting environmental, social and governance screening criteria [such as the Dow Jones Sustainability Indices ] and conventional composite indices of eight Asian countries from 2002 to 2014. The results indicate that there are no significant differences in the returns or risk-adjusted returns between the ESG indices and the composite indices within countries. The results do reveal that the market volatility of the ESG indices is higher than (...) the market volatility of the conventional indices. Market betas of DJSI and ESG equity indices are significantly lower than betas of the composite equity indices. The overall results indicate that the performance of ESG equity indices of many Asian countries is similar to the performance of conventional indices, suggesting that investors can pursue socially responsible investing objectives without a material difference in portfolio performance from conventional investing. (shrink)

This study examines the impact of government divestiture on corporate environmental investment (EI) and investigates how regional development moderates this relationship. Using a sample of Chinese listed firms from 2012 to 2022, we employ a fixed-effect model to analyze the data. Our findings reveal a negative effect of government divestiture on EI. Furthermore, we observe that regional development mitigates this negative impact, indicating that firms operating in developed environments are more inclined to prioritize environmental concerns, likely due to increased stakeholder (...) monitoring. To address concerns regarding endogeneity, we utilize propensity score matching (PSM), Heckman tests, and the generalized method of moments (GMM). Overall, our results carry significant policy implications, particularly regarding the environmental consequences of privatization in emerging markets like China. (shrink)

This paper examines the relationship between loan guarantees and audit fees as well as the moderating effect of corporate social responsibility. We find that guaranteeing another entity’s debt significantly increases firms’ own audit fees. However, the disclosure of CSR information attenuates the fee-increasing effects of loan guarantees. A closer examination reveals that the role of CSR is attributable to the information effect rather than the signal effect. Our results are robust to the use of a quasi-natural experiment, a propensity score (...) matching analysis, a Heckman two-stage treatment effect model and alternative proxies. This work makes new contributions to the current understanding of the consequences of loan guarantees, determinants of audit fees and value of CSR disclosure. (shrink)