Paper: SSRN 3708495

Abstract

Sustainability in business and ESG (environmental, social, and governance) in finance have exploded in popularity among researchers and practitioners. We survey

Complexity vs Empirical Score

  • Math Complexity: 3.5/10
  • Empirical Rigor: 8.0/10
  • Quadrant: Street Traders — practical and empirical, lighter on theory

Why this score: The paper relies on large-scale meta-analysis of existing studies rather than novel mathematical modeling, yet demonstrates high empirical rigor through systematic review of 1,141 papers and providing public replication data and methodology.

Research Flowchart

  flowchart TD
  A["Research Goal:<br>Does Sustainability Improve Financial Performance?"]
  B["Methodology:<br>Systematic Review & Meta-Analysis"]
  C["Data Inputs:<br>Existing Studies on ESG & Returns"]
  D["Computational Process:<br>Aggregation & Bias Correction"]
  E["Outcome 1: Positive<br>ESG-Return Relationship"]
  F["Outcome 2: Risk-Based<br>Explanations Dominate"]
  G["Proposition:<br>ESG as Risk Factor in Asset Pricing"]

  A --> B
  B --> C
  C --> D
  D --> E
  D --> F
  E & F --> G