ESG Rating Disagreement and Firm Performance
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- Master of Science 
The increasing focus on environmental, social, and governance (ESG) matters has led to the emergence of numerous ESG rating agencies that evaluate and rank companies based on their ESG performance. As a result, we now have a wide range of ESG ratings available. This study aims to examine two main aspects. Firstly, it investigates the presence of ESG rating disagreement among Nordic listed firms from 2012 to 2021, considering the ESG ratings provided by Bloomberg, Refinitiv, and S&P Global. Secondly, it explores the potential relationship between ESG rating disagreement and firm performance. We use two different financial measures to measure firm performance, return on assets (ROA) and stock returns. Panel regression with fixed effects is employed to conduct the analysis. Our findings indicate that there is no statistically significant relationship between ESG rating disagreement, stock returns, and ROA in the Nordic market. We discuss the practical implications of these results.
Masteroppgave(MSc) in Master of Science in Business, Sustainable Finance - Handelshøyskolen BI, 2023