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Competition and ESG practices in emerging markets: Evidence from a difference-in-differences model

Finance Research Letters, ISSN: 1544-6123, Vol: 46, Page: 102371
2022
  • 93
    Citations
  • 0
    Usage
  • 221
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    93
    • Citation Indexes
      93
  • Captures
    221

Article Description

This paper investigates how competition affects firms' environmental, social, and governance (ESG) practices in 22 emerging markets, using a sample of 6,906 firm–year observations from 2011 to 2019. Using a difference-in-differences technique and matched samples with a treated and a control group, I explore exogenous variation in the competitive environment of one country, Brazil, to assess the competition´s causal effect on ESG. The results suggest that firms adjust ESG practices negatively after a shock in competition, contrasting with previous results from developed economies.

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