Título: | ANALYSIS OF CSR AND ESG INVESTMENT DECISION: A REAL OPTION INSIGHT ON HOW COMPANIES ARE PERCEIVING THE INVESTMENT AND A GUIDANCE ON FUTURE STEPS | ||||||||||||
Autor: |
LILIANNE BASTOS DE SA BORGES |
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Colaborador(es): |
ANTONIO CARLOS FIGUEIREDO PINTO - Orientador MARCO ANTONIO GUIMARAES DIAS - Coorientador |
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Catalogação: | 24/MAI/2022 | Língua(s): | ENGLISH - UNITED STATES |
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Tipo: | TEXT | Subtipo: | THESIS | ||||||||||
Notas: |
[pt] Todos os dados constantes dos documentos são de inteira responsabilidade de seus autores. Os dados utilizados nas descrições dos documentos estão em conformidade com os sistemas da administração da PUC-Rio. [en] All data contained in the documents are the sole responsibility of the authors. The data used in the descriptions of the documents are in conformity with the systems of the administration of PUC-Rio. |
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Referência(s): |
[pt] https://www.maxwell.vrac.puc-rio.br/projetosEspeciais/ETDs/consultas/conteudo.php?strSecao=resultado&nrSeq=59160&idi=1 [en] https://www.maxwell.vrac.puc-rio.br/projetosEspeciais/ETDs/consultas/conteudo.php?strSecao=resultado&nrSeq=59160&idi=2 |
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DOI: | https://doi.org/10.17771/PUCRio.acad.59160 | ||||||||||||
Resumo: | |||||||||||||
We studied the rationales of investing in CSR/ESG. We explored the several critics that the concept received over the years; and the recent rush of CEOs into signing commitments to lead their companies for the benefit of all stakeholders and of asset managers into incorporating environmental, social and governance (ESG) on their investment decision making process. To clarify the CSR/ESG investment
choice and the investment behavior of the firms towards it, we drew on very recent empirical research articles on CSR/ESG to choose four different real options models. Using the models, we performed sensitivity analyses on the decision to become a socially responsible firm, to invest in CSR/ESG to capture a goodwill, as well as on the abandonment option and jump to zero probability. Our results suggest
that the investment in CSR/ESG is valuable, but not for the reasons commonly presented. The investment creates an opportunity for the firm to limit its losses when involved in a reputational, environmental, or social damaging event. To keep the opportunity alive, the firm has to continuously invest in CSR/ESG initiatives, which may be more accessible to larger and stronger firms. We discuss whether this
opportunity propels firms to engage in a reckless or unethical behavior and point out the contradiction between the possible incentive to malpractice and the concept s original purpose.
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