ESG and stock performance

Inhaltsverzeichnis (Table of Contents)

• 1. Introduction
• 2. Concept of ESG and CSR
• 3. ESG rating agencies
  • 3.1 Provider and measurement
  • 3.2 Divergence of ESG ratings
  • 3.3 Reasons for divergence in ESG ratings
  • 3.4 Implications of ESG rating divergence
• 4. Literature overview: The effect of positive ESG rating on stock performance
  • 4.1 Theoretical background: Hypotheses in the literature about the effect of positive ESG rating on stock performance
  • 4.2 Stock performance of positively rated ESG portfolios in empirical studies
  • 4.3 Limitations of discussed empirical studies
• 5. Empirical study: Performance of a positively rated ESG portfolio
  • 5.1 Data
  • 5.2 Analysis of historical returns and the Sharpe ratio
  • 5.3 Results and limitations
• 6. Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This bachelor thesis investigates the relationship between ESG ratings and stock performance. It explores the concept of ESG and its divergence across different rating agencies. The thesis further examines the theoretical background and empirical evidence on the impact of positive ESG ratings on stock performance.

• ESG rating divergence and its implications
• Theoretical hypotheses on the relationship between ESG ratings and stock performance
• Empirical evidence on the stock performance of positively rated ESG portfolios
• Limitations of existing empirical studies
• Empirical study on the performance of a positively rated ESG portfolio

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1 introduces the topic of ESG and its importance in the context of sustainable investing.
• Chapter 2 defines the concepts of ESG and CSR and their relevance to financial markets.
• Chapter 3 discusses different ESG rating agencies, including their methodologies, divergence in ratings, and potential reasons for such divergence. It also explores the implications of this divergence for investors.
• Chapter 4 provides a literature overview on the effect of positive ESG ratings on stock performance. It examines theoretical hypotheses and reviews empirical studies on the subject.
• Chapter 5 presents an empirical study on the performance of a positively rated ESG portfolio, including data selection, analysis of historical returns and the Sharpe ratio, and a discussion of the results and limitations.

Schlüsselwörter (Keywords)

The key focus topics of this thesis include ESG ratings, stock performance, sustainable investing, corporate social responsibility, rating agency divergence, and empirical research on the relationship between ESG and financial performance.