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EVIDENCE ON ENVIRONMENTAL, SOCIAL, AND GOVERNANCE PRACTICES ASSOCIATED WITH THE COST OF CAPITAL FOR COMPANIES IN THE CAPITAL MARKET IN G20 COUNTRIES

Patrícia Lacerda de Carvalho et al.

RAE-Revista de Administracao de Empresas2025https://doi.org/10.1590/s0034-759020250108xarticle
AJG 1ABDC C
Weight
0.37

What the paper says

ABSTRACT This study examines the relationship between environmental, social, and governance (ESG) practices and the costs of equity and debt capital in 19 G20 countries, excluding the European Union. Using panel data for 3,651 companies from 2005 to 2021, ESG scores from Refinitiv (ESG performance) and Bloomberg (ESG disclosure) were utilized. The results show a significant negative relationship between ESG practices and the costs of capital for firms, suggesting that engaging in ESG practices lowers the cost of funding. Furthermore, there is no perfect correlation between ESG performance and disclosure, indicating that these metrics capture distinct aspects of business practices. This study reinforces the relevance of ESG practices as a strategic factor influencing the cost of capital and underscores the importance of using varied metrics to evaluate different dimensions of corporate sustainability.

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https://doi.org/https://doi.org/10.1590/s0034-759020250108x

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@article{patrícia2025,
  title        = {{EVIDENCE ON ENVIRONMENTAL, SOCIAL, AND GOVERNANCE PRACTICES ASSOCIATED WITH THE COST OF CAPITAL FOR COMPANIES IN THE CAPITAL MARKET IN G20 COUNTRIES}},
  author       = {Patrícia Lacerda de Carvalho et al.},
  journal      = {RAE-Revista de Administracao de Empresas},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1590/s0034-759020250108x},
}

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EVIDENCE ON ENVIRONMENTAL, SOCIAL, AND GOVERNANCE PRACTICES ASSOCIATED WITH THE COST OF CAPITAL FOR COMPANIES IN THE CAPITAL MARKET IN G20 COUNTRIES

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.