Assignment 3 (Questions and Comments)

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1.

Does Environmental performance Mediate the relationship between Corporate


governance and Firm value? by Da Woon Yoon, Jong Dae Kim
Comment:
This research investigates the relationship between corporate governance and firm value, the
connection between corporate governance and environmental performance, and the
mediation of environmental performance in the link between corporate governance and firm
value and builds hypotheses based on established theories like agency, stakeholder, and
legitimacy theories. Through the lens of well-established theories, the study addresses gaps
in understanding how these elements interconnect.
Questions:
1) Is it necessary to conduct a robustness check in every research study, and are there
specific types of research where it can be omitted?
2) What does the statement "there may be a logical problem with approaching each element
of ESG by simply adding them together on the same dimension" mean in the context of the
study?
2. Relationship between carbon risk reduction and corporate value according to
the mediating effect of ownership structure between foreign and domestic
institutional investor by Jong Man Park, Jong Dae Kim
Comment:
Unlike merely exploring the direct link between reducing carbon risk and enhancing firm
value, the study also investigates the mediating role of foreign and domestic institutional
investors' ownership structures.
This study is important, as it provides valuable insights to the relationship between
environmental sustainability, financial performance, and investor behavior.
The results highlight that these investors play a crucial mediating role, indicating that their
ownership percentages influence the positive impact of carbon risk reduction on firm value.
This insight has practical implications for businesses seeking to align their sustainability
efforts with investor expectations and preferences.

Questions:
1) The study focuses on carbon risk reduction as a key variable. Are there other
environmental, social, or governance (ESG) factors that could equally influence firm value?
3. The impact of environmental, social, and governance disclosure on firm value:
The role of CEO power by Yiwei Li, Mengfeng Gong, Xiu-Ye Zhang, Lenny Koh

Comment:
This research suggests that transparent ESG practices, especially in companies with strong
CEO leadership, can enhance overall firm value. This is important, because stakeholders,
including investors, customers, and employees, increasingly value transparency and ethical
business practices. Thus, transparency on ESG aspects can contribute to long-term business
success and positive stakeholder relationships.

Questions:
1) Can you briefly explain about the methodology used in this paper?

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