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http://dx.doi.org/10.15813/kmr.2021.22.4.005

ESG Investment Strategy Evaluation after Covid-19: Focusing on the ESG Indices Outcome  

Park, Jun Shin (Graduate Program in Investment Information Engineering)
Ahn, Jae Joon (Division of Data Science, Yonsei University)
Oh, Kyong Joo (Dept. of Industrial Engineering, Yonsei University)
Publication Information
Knowledge Management Research / v.22, no.4, 2021 , pp. 87-101 More about this Journal
Abstract
ESG Investment is emerging as a trend and common sense in the financial market. ESG Investment is an investment method that simultaneously pursue social sustainability and investment returns from a long-term perspective by reflecting non-financial factors such as environment, society and governance in addition to corporate financial performance in investment decisions. This study checked how the characteristics of ESG investment have been changed after Covid-19. Afterwards, it was confirmed that Covid-19 actually acted as a negative factor in the securities market by applying VAR model. At the same time, it was demonstrated that ESG indices of the US and Korea outperformed their benchmark in terms of return and risk during the pandemic regime. The result of this study hints that the importance of ESG investment will be unchanged after Covid-19. At the same time, it suggests that managers should avoid passive ESG management and engage in strategic ESG management based on knowledge management.
Keywords
ESG; Environment; Social; Governance; Knowledge Management; ESG Investment; ESG Investor; ESG Index;
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