CFA Society Greece's 4-member jury evaluated six (6) papers independently and anonymously for the 3rd Annual Research Award.
Winning Paper
Does ESG reputational risk affect the efficiency and speed of adjustment of corporate investment?
by Ioannis Chasiotis, Dimitrios Gounopoulos, Dimitrios Konstantios, Vasilios‐Christos Naoum, Victoria Patsika
The winning paper, which is published in European Financial Management, explores the relationship between environmental, social, and governance (ESG) reputational risk and investment efficiency. The authors provide evidence that ESG reputational risk relates to higher corporate suboptimal investment (underinvestment) and a lower speed of adjustment back to the optimal investment level. Their findings hold for parametric and non‐parametric estimations of underinvestment and are robust to several techniques that address endogeneity and self‐selection. Overall, the study highlights the important role of ESG reputational risk in determining corporate investment efficiency.