This Research Spotlight provides a summary of the academic literature on environmental, social, and governance (ESG) activities including:
- The relation between ESG activities and firm value
- The impact of environmental and social engagements on firm performance
- The market reaction to ESG events
- The relation between ESG and agency problems
- The performance of socially responsible investment (SRI) funds
This Research Spotlight expands upon issues introduced in the Quick Guide Investors and Activism.