Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/257793 
Year of Publication: 
2021
Citation: 
[Journal:] International Journal of Financial Studies [ISSN:] 2227-7072 [Volume:] 9 [Issue:] 3 [Article No.:] 48 [Publisher:] MDPI [Place:] Basel [Year:] 2021 [Pages:] 1-27
Publisher: 
MDPI, Basel
Abstract: 
Existing global ESG models are limited in terms of applicability and predictability, especially in countries with an unstable environment. On the other hand, utilizing internally made or privately sourced ESG models have caused issues relating to generalizability, comparability, and continuity. In our research, we present an ESG framework that is specific to South Korea, which has both global and country-specific factors in all three categories. The AHP model is used to determine how the three categories' materiality would be viewed by institutional investors as well as how country-specific factors rank against global factors. The results of this study show that institutional investors place more importance on environmental and governance factors compared to social factors. Factors including shareholders' rights, pollution and waste, greenhouse gas emissions, and risk and opportunity management are found to have greater influences on investors' investment decisions. In addition, it was confirmed that both of the country-specific variables for South Korea, partnership with subcontractor and CEO reputation, have a significant influence on investment decisions. By having the ESG model validated by institutional investors, who are the main users of ESG disclosures of corporations, our methodology of presenting a country-specific model can be benchmarked by studies on other emerging markets with a variety of country-level specificities.
Subjects: 
analytical hierarchy process (AHP)
CEO reputation
ESG investment
ESG management
institutional investor
Korean specific ESG model
partnership with subcontractor
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.