The Article Examines the Influence of Social and Economical Factors on the Dynamics of a Company's Market Value
( Pp. 180-184)
More about authors
Marina A. Fedotova
Financial University under the Government of the Russian Federation; Moscow
; Russian Federation Tazikhina Tatyana V. Cand. Sci. (Econ.), Associate Professor; Professor of Department of Corporate Finance and Corporate Governance
Financial University under the Government of the Russian Federation
Moscow, Russian Federation
Financial University under the Government of the Russian Federation; Moscow
; Russian Federation Tazikhina Tatyana V. Cand. Sci. (Econ.), Associate Professor; Professor of Department of Corporate Finance and Corporate Governance
Financial University under the Government of the Russian Federation
Moscow, Russian Federation
Abstract:
The article examines the influence of social, environmental and corporate governance factors on the dynamics of a company's market value. The relevance of the study is associated with sustainable development and the adoption of ESG principles in investment, valuation and financing. The article aims to study the impact of social and environmental factors on the formation of the company's market value. Companies in current conditions are the object of the study. The subject of the article is the transformation of the company's value formation processes influenced by social and environmental factors. The author concludes that there is a moderate relationship between SDS and the company's market value indicators. The study proves that meeting the ESG criteria has a negative impact on the market value of a company in the short term and positive in the long term.
How to Cite:
Marina A.F., Tazikhina T.V., (2022), THE ARTICLE EXAMINES THE INFLUENCE OF SOCIAL AND ECONOMICAL FACTORS ON THE DYNAMICS OF A COMPANY'S MARKET VALUE. Economic Problems and Legal Practice, 1 => 180-184.
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Horv thov , E., 2010, Does environmental performance affect financial performance A meta-analysis , Ecological Economics, 70, 52-59.
Konar, S. and Cohen, M. A., 2001, Does the market value environmental performance , Review of Economics and Statistics, 83(2), 281-89.
McGuire, J., Sundgren, A., Schneeweis, T. 1988. Corporate social responsibility and firm financial performance. Academy of Management Journal 31 (4): 854-872.
Fombrum CJ, Shanley M. 1990) What s in a name Reputation building and corporate strategy. Acad Manage J 33(2):233-258.
Frankel, R. and Lee, C. (1998), Accounting valuation, market expectation and crosssectional stock returns , Journal of Accounting and Economics 35, 283-319.
Frye, Melissa B., Edward Nelling, and Elizabeth Webb. 2006. Executive Compensation in Socially Responsible Firms . Corporate Governance 14 (5): 446-55.
Barnett, M. L., and R. M. Salomon. 2006. Beyond Dichotomy: The curvilinear relationship between social responsibility and financial performance. Strategic Management Journal 27 (11):1101-22. DOI:10.1002/(ISSN)1097-0266.
Bloomberg, 2013 www.bloomberg.com Sustainability Report 2012.
Keywords:
market value of companies, sustainable development concept, social and environmental factors, CSR investment, the relationship between corporate responsibility and the value of companies and their capitalization.
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