The Influence of Environmental, Social, and Governance (ESG) Practices on US Firms’ Performance: Evidence from the Coronavirus Crisis

This study explores the influence of total and individual ESG practices and the coronavirus crisis on US firm performance (FP). A large and recent sample of 406 US firms that adopted ESG issues during 2016–2020 was used. This study uses the generalized least-squares (GLS) regression estimator, the dynamic analysis technique, and robustness tests. The results indicate that firms with heightened ESG practices have better performance measures. In most cases, the results suggest that firms with heightened environmental, social, and governance performances have better performance measures. The results suggest that the coronavirus crisis negatively affected FP measures. In addition, the analyses of the differences suggest significant distinctions in FP due to the coronavirus crisis. This study’s findings have important implications for stakeholders. Managers could benefit from the results of this examination by recognizing the status of ESG practices and FP before and during the coronavirus crisis and identifying the linkage between the fulfillment of ESG responsibilities and FP. This study provides noteworthy practical implications that could enable managers to develop strategies and policies for adopting and enhancing ESG practices to achieve the best performance. Furthermore, the results could influence trading processes as investors and financiers pursue attractive financial returns from investments in businesses concerned with ESG issues.

Neoliberalism is not dead – On political implications of Covid-19

The news is old – neoliberalism is dead for good, but this time, even Financial Times knows it. Obituaries claim that it had died from the coronavirus, as the state, not the markets, have had to save both the people and the economy. The argument of the article is that these academic and media interpretations of ‘emergency Keynesianism’ misidentify neoliberalism with its anti-statist rhetoric. For neoliberalism is, and has always been, about ‘the free market and the strong state’. In fact, rather than waning in the face of the coronavirus crisis, neoliberal states around the world are using the ongoing ‘war against the virus’ to strengthen their right-hand grip on the conditions of the working classes.

The impact of the coronavirus crisis on the market price of risk

We study an equilibrium risk and return model to explore the effects of the coronavirus crisis and associated skewness on the market price of risk. We derive the moment and equilibrium equations, specifying skewness price of risk as an additive component of the effect of variance on mean expected return. We estimate our model using the flexible skewed generalized error distribution, for which we derive the distribution of returns and the likelihood function. Using S&P 500 Index returns from January 1980 to mid-October 2020, our results show that the coronavirus crisis generated a deeply negative reaction in the skewness and total market price of risk, more negative even than the subprime and the October 1987 crises.

Measurement and antecedents of national resilience in Filipino adults during coronavirus crisis

Resilience is a broad concept that encompasses individual and social resources to thrive from difficult circumstances. The resilience that occurs as a collective effort or country-wide phenomenon is referred to as national resilience (NR), which connotes the ability of a nation to deal with crises while keeping its social fabric intact. Like the rest of the world, the Philippines has been greatly impacted by the coronavirus pandemic and we argue that a stable and robust NR is needed to bounce back from the challenges and adversities of the crisis. This pioneering study on NR in Filipino adults was conducted to achieve two aims (1) assess the psychometric properties of the Filipino adapted National Resilience Scale (NRS-Filipino) and (2) determine demographic and psychological variables that influence NR. Data from 401 participants yielded an exploratory factor analysis with a good model fit for a four-factor solution that is similar to the original National Resilience Assessment Scale. NRS-Filipino also demonstrated acceptable reliability and convergent validity. Among the variables purported to be associated with NR, community resilience, and political attitude came out as strong predictors.