ESG Scores and Secondary Equity Offerings: A Case of Secondary Equity Offering in the US
Master thesis
Permanent lenke
https://hdl.handle.net/11250/3095857Utgivelsesdato
2023Metadata
Vis full innførselSamlinger
- Master of Science [1822]
Sammendrag
The relationship between environmental, social, and governance (ESG) scores
and secondary equity offerings (SEO) has received limited attention in the
literature. This thesis explores this topic using a sample of US-listed firms and
applies various econometric methods. We find that ESG scores are inconsistent
measures for a firm’s performance in the event of an SEO and that they do not
affect the market reaction. Additionally, we find that CO2 emissions have a
negative impact on the abnormal returns of firms issuing secondary equity and
that firms with high ESG scores are less likely to issue equity to raise capital
and more likely to use the proceeds for dividend payments. We conclude that
ESG scores are unreliable predictors of SEO performance, and find evidence
for the probability of issuing equity and allocation of proceeds.
Beskrivelse
MSc in Business with Major Sustainable Finance, Handelshøyskolen BI, 2023