Professor Anatoli Colicev, University of Liverpool

How ESG Reduces Idiosyncratic Risk: The Role of Consumers and Institutional Investors
Monday, 16 December 2024. 15:00-16:30
Adam Smith Business School Room 588AB

 

Abstract

Practitioners regard firms’ environmental, social, and governance (ESG) performances as a crucial risk management practice. However, no empirical evidence has yet linked ESG performances to firm risk through different stakeholders. Drawing on stakeholder theory, the authors develop a conceptual framework that posits (1) asymmetric relationships between individual E, S, and G performances and customer-based brand equity (CBBE) and institutional investor ownership (IIO) and (2) mediating roles of CBBE and IIO in the relationships between E, S, and G performances and firms’ idiosyncratic risk. Using quarterly data from 416 firms spanning 2012–2020, the authors find that CBBE and IIO indeed mediate the associations between E, S, and G performances and idiosyncratic risk. While E performance has a positive and G performance a negative association with CBBE, E and S performances have a negative and G performance a positive association with IIO. The findings imply that firms should carefully navigate the trade-offs of E, S, and G performances to deal with multiple stakeholders.

The paper can be found here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4410032

Bio

Anatoli is a Chair in Marketing, Strategy, and Analytics at the University of Liverpool School of Management. He serves as an Associate Editor at the International Journal of Research in Marketing and Journal of Retailing, as well as an editorial review board member of the Journal of Marketing, Journal of Marketing Research, and the Journal of International Business Studies. He is the creator of the PhD Journey slides – material that is directed to help academics
around the world. His research interests are driven by his passions, by the research puzzles, and quite often by the people around him. Earning a PhD in Decision Sciences and Statistics (ESSEC Business School), his collaborations include the fields of marketing, management, operations management, accounting, finance, and economics. His topics include NFTs, blockchain and Web3, social media marketing, marketing-finance interface, ESG, and strategic management. He works with empirical data and collaborates with companies such as Metro AG, YouGov Group, and Equileap. His work has appeared in the Journal of Marketing, Journal of Marketing Research, Strategic Management Journal, International Journal of Research in Marketing, Long Range Planning, Journal of Interactive Marketing, and others.

 


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First published: 20 November 2024