“The moderating role of legal enforcement in ESG's impact on corporate crash risk: Evidence from Asian stock market”
Environment, Social, and Governance (ESG) scores serve as an index that indicates the extent to which listed companies operate an eco-friendly and cleaner production process, are responsible to society, and are transparent and accountable with their shareholders and investors. This study investigate...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-03-01
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| Series: | Cleaner and Responsible Consumption |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666784325000105 |
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| author | Woraphon Wattanatorn Tatre Jantarakolica |
| author_facet | Woraphon Wattanatorn Tatre Jantarakolica |
| author_sort | Woraphon Wattanatorn |
| collection | DOAJ |
| description | Environment, Social, and Governance (ESG) scores serve as an index that indicates the extent to which listed companies operate an eco-friendly and cleaner production process, are responsible to society, and are transparent and accountable with their shareholders and investors. This study investigates the impact of Environmental, Social, and Governance (ESG) practices on stock price crash risk, with a particular focus on the influence of law enforcement. Using a comprehensive dataset from major Asian markets, spanning 2011 to 2022, we assess how ESG practices influence financial stability. Our findings reveal that higher ESG scores significantly reduce stock price crash risk, highlighting the importance of sustainability in corporate strategies. Moreover, the study explores the interaction between ESG practices and the legal environment, highlighting the critical role of robust legal frameworks in enhancing ESG practices' effectiveness. |
| format | Article |
| id | doaj-art-bd2e4bfbc8ee43f38f4c0f7ae5b5a7cb |
| institution | OA Journals |
| issn | 2666-7843 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Cleaner and Responsible Consumption |
| spelling | doaj-art-bd2e4bfbc8ee43f38f4c0f7ae5b5a7cb2025-08-20T02:06:20ZengElsevierCleaner and Responsible Consumption2666-78432025-03-011610025910.1016/j.clrc.2025.100259“The moderating role of legal enforcement in ESG's impact on corporate crash risk: Evidence from Asian stock market”Woraphon Wattanatorn0Tatre Jantarakolica1Department of Finance, Thammasat Business School, Thammasat University, Bangkok, 10200, Thailand; Corresponding author.Faculty of Economics, Thammasat University, Bangkok, 10200, ThailandEnvironment, Social, and Governance (ESG) scores serve as an index that indicates the extent to which listed companies operate an eco-friendly and cleaner production process, are responsible to society, and are transparent and accountable with their shareholders and investors. This study investigates the impact of Environmental, Social, and Governance (ESG) practices on stock price crash risk, with a particular focus on the influence of law enforcement. Using a comprehensive dataset from major Asian markets, spanning 2011 to 2022, we assess how ESG practices influence financial stability. Our findings reveal that higher ESG scores significantly reduce stock price crash risk, highlighting the importance of sustainability in corporate strategies. Moreover, the study explores the interaction between ESG practices and the legal environment, highlighting the critical role of robust legal frameworks in enhancing ESG practices' effectiveness.http://www.sciencedirect.com/science/article/pii/S2666784325000105G01G10G11 |
| spellingShingle | Woraphon Wattanatorn Tatre Jantarakolica “The moderating role of legal enforcement in ESG's impact on corporate crash risk: Evidence from Asian stock market” Cleaner and Responsible Consumption G01 G10 G11 |
| title | “The moderating role of legal enforcement in ESG's impact on corporate crash risk: Evidence from Asian stock market” |
| title_full | “The moderating role of legal enforcement in ESG's impact on corporate crash risk: Evidence from Asian stock market” |
| title_fullStr | “The moderating role of legal enforcement in ESG's impact on corporate crash risk: Evidence from Asian stock market” |
| title_full_unstemmed | “The moderating role of legal enforcement in ESG's impact on corporate crash risk: Evidence from Asian stock market” |
| title_short | “The moderating role of legal enforcement in ESG's impact on corporate crash risk: Evidence from Asian stock market” |
| title_sort | the moderating role of legal enforcement in esg s impact on corporate crash risk evidence from asian stock market |
| topic | G01 G10 G11 |
| url | http://www.sciencedirect.com/science/article/pii/S2666784325000105 |
| work_keys_str_mv | AT woraphonwattanatorn themoderatingroleoflegalenforcementinesgsimpactoncorporatecrashriskevidencefromasianstockmarket AT tatrejantarakolica themoderatingroleoflegalenforcementinesgsimpactoncorporatecrashriskevidencefromasianstockmarket |