ESG Rating Disagreement and Stock Returns
ESG Rating Disagreement and Stock Returns ArXiv ID: ssrn-3433728 “View on arXiv” Authors: Unknown 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 Keywords: ESG Ratings, Corporate Governance, Sustainability Disclosure, Firm Performance, S&P 500 Complexity vs Empirical Score Math Complexity: 3.0/10 Empirical Rigor: 7.5/10 Quadrant: Street Traders Why: 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. 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"]