Abstract
The energy sector has relatively higher exposure to controversial publicity due to the nature of industry operations. For this reason, this study focuses on the energy sector and aims to evaluate the impact of ESG controversies scores (Environmental Controversies, Social Controversies and Governance Controversies) of LSEG (former Refinitiv EIKON) database on market value of firms. We investigate the relationship between ESG controversies and the market value of 393 firms in 2018-2022 using Dynamic Panel Data Regression Models. The findings of the study, carried out with system GMM, reveal that the market value of firms in the previous period has had a statistically significant positive effect on the market value of firms in the current period. There is a positive and statistically significant relationship between market value and governance controversies. Yet, no statistically significant relationship was detected between market value and environmental controversies (CE), or market value and social controversies.
Keywords
Environmental Controversies Social Controversies Governance Controversies Market Value Energy Sector
Project Number
NA
References
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Abstract
The energy sector has relatively higher exposure to controversial publicity due to the nature of industry operations. For this reason, this study focuses on the energy sector and aims to evaluate the impact of ESG controversies scores (Environmental Controversies, Social Controversies and Governance Controversies) of LSEG (former Refinitiv EIKON) database on market value of firms. We investigate the relationship between ESG controversies and the market value of 393 firms in 2018-2022 using Dynamic Panel Data Regression Models. The findings of the study, carried out with system GMM, reveal that the market value of firms in the previous period has had a statistically significant positive effect on the market value of firms in the current period. There is a positive and statistically significant relationship between market value and governance controversies. Yet, no statistically significant relationship was detected between market value and environmental controversies (CE), or market value and social controversies.
Keywords
Environmental Controversies Social Controversies Governance Controversies Market Value Energy Sector
Ethical Statement
NA
Supporting Institution
NA
Project Number
NA
Thanks
NA
References
- .............................
Details
| Primary Language | English |
|---|---|
| Subjects | Sustainable Development, Financial Forecast and Modelling, Financial Markets and Institutions |
| Journal Section | Makaleler |
| Authors | |
| Project Number | NA |
| Publication Date | October 31, 2025 |
| Submission Date | May 12, 2025 |
| Acceptance Date | October 6, 2025 |
| Published in Issue | Year 2025 Volume: 10 Issue: Özel Sayı |
