Paper: SSRN 3433728

Abstract

Using ESG ratings from seven different data providers for a sample of S&P 500 firms between 2010 and 2017, we study the relation between ESG rating disagree

Complexity vs Empirical Score

  • Math Complexity: 3.0/10
  • Empirical Rigor: 7.5/10
  • Quadrant: Street Traders — practical and empirical, lighter on theory

Why this score: The paper relies heavily on empirical data analysis (correlations, panel regressions, firm characteristics) with a focus on backtest-ready financial metrics like stock returns and equity cost of capital, but the mathematical modeling is limited to standard econometric techniques without advanced theory or derivations.

Research Flowchart

  flowchart TD
  A["Research Goal: Impact of ESG Rating Disagreement<br>on Stock Returns for S&P 500 Firms"] --> B["Data Inputs<br>2010-2017, S&P 500, 7 ESG Providers"]
  B --> C["Methodology: Calculate ESG Disagreement<br>across providers"]
  C --> D["Methodology: Regression Analysis<br>ESG Disagreement vs. Stock Returns"]
  D --> E{"Key Findings"}
  E --> F["Higher ESG Disagreement<br>associated with Lower Stock Returns"]
  E --> G["Disagreement mediates<br>the ESG-Performance relationship"]