The relationship between cost of equity and ESG: the effect of COVID-19

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dc.contributor.authorFan, Ruijie
dc.contributor.authorUniversity of Lethbridge. Dhillon School of Business
dc.contributor.supervisorTian, Gloria
dc.contributor.supervisorAsem, Ebenezer
dc.date.accessioned2024-06-07T22:40:25Z
dc.date.available2024-06-07T22:40:25Z
dc.date.issued2024
dc.degree.levelMasters
dc.description.abstractSeveral prior studies report that environmental, social, and governance (ESG) initiatives temper the cost of equity. More recent studies show that COVID-19 increased the cost of equity. It is unclear whether the ESG mitigated the higher cost of capital during the COVID period. I focus on studying this using ESG and basic financial data for the period ranging from 2015 to 2022 based on U.S. and Canadian firms listed on NYSE, AMEX, and NASDAQ. The results show that the increase in the cost of equity during the COVID period concentrates less on firms with high ESG performance scores, suggesting ESG mitigated the increase in the cost of equity. This is consistent with the insurance-like effect of ESG on the cost of capital, cushioning the increase in the cost of capital during uncertain periods. In addition, my study reveals that the amplified ESG benefit in cost of equity reduction can be moderated by levels of industrial GDP growth and the stringency of the COVID-19 government policy.
dc.description.sponsorshipGraduate Assistantship, U of L Graduate Research Award, Social Sciences and Humanities Research Council
dc.embargoNo
dc.identifier.urihttps://hdl.handle.net/10133/6778
dc.language.isoen
dc.proquest.subject0454
dc.proquestyesYes
dc.publisherLethbridge, Alta. : University of Lethbridge, Dhillon School of Business
dc.publisher.facultyDhillon School of Business
dc.relation.ispartofseriesThesis (University of Lethbridge. Dhillon School of Business)
dc.subjectcost of equity
dc.subjectESG
dc.subjectCOVID-19
dc.subject.lcshDissertations, Academic
dc.subject.lcshCapital costs
dc.subject.lcshCOVID-19 Pandemic, 2020- --Economic aspects--Research
dc.subject.lcshCOVID-19 Pandemic, 2020- --Influence--Research
dc.subject.lcshInvestments--Environmental aspects
dc.subject.lcshInvestments--Social aspects
dc.subject.lcshInvestments--Moral and ethical aspects
dc.subject.lcshBusiness enterprises--Finance--Research
dc.subject.lcshCorporations--Finance--Research
dc.subject.lcshStocks
dc.titleThe relationship between cost of equity and ESG: the effect of COVID-19
dc.typeThesis
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