Socio-environmental corruption scandals
effects on the financial performance of esg-compliant companies in latin america
DOI:
https://doi.org/10.16930/2237-766220253606Keywords:
Socio-environmental Corruption Scandals, Financial Performance, ESG, Latin AmericaAbstract
This study aimed to examine the effects of socio-environmental corruption scandals on the financial performance of ESG-compliant companies in Latin America. To this end, a descriptive methodological approach was adopted with respect to the objectives, a documentary approach regarding the procedures, and a mixed qualitative-quantitative approach in terms of the overall methodology. The sample for this study consisted of publicly traded ESG-compliant companies in Latin America that were involved in socio-environmental scandals. To select this sample, news articles were surveyed using Google News. Subsequently, financial statement data of the identified companies were collected from the Refinitiv database, covering the period from 2010 to 2023. The method employed in this study was a multiple linear regression model with panel data. The main findings indicate that socio-environmental scandals may actually enhance the financial performance of ESG-compliant companies in Latin America by generating additional business opportunities, even though such behaviors are inappropriate.
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