Competition and ESG practices in emerging markets: Evidence from a difference-in-differences model

Abstract This paper investigates how competition affects firms' environmental, social, and governance (ESG) practices in 22 emerging markets, using a sample of 6,906 firm–year observations from 2011 to 2019. Using a difference-in-differences technique and matched samples with a treated and a control group, I explore exogenous variation in the competitive environment of one country, Brazil, to assess the competition´s causal effect on ESG. The results suggest that firms adjust ESG practices negatively after a shock in competition, contrasting with previous results from developed economies.

• Publication year

  2021

• Venue

  Finance Research Letters

• Publication date

  2021-08-12

• Fields of study

  Business, Economics, Environmental Science

• Identifiers
  DOI 10.1016/j.frl.2021.102371
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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