with Drs. Liang Hu and Hiu Lam Choy

Environmental, Social, and Governance (ESG) performance has become a pivotal aspect of Corporate Social Responsibility (CSR), signifying firms’ commitment to sustainable and ethical business practices. This study investigates the relationship between ESG performance, as measured by Bloomberg ESG scores, and cost of capital using panel data from U.S.-domiciled and U.S.-listed firms spanning 2014 to 2022. My analysis demonstrates that stronger lagged ESG performance scores are significantly associated with a lower cost of equity capital in the subsequent year, aligning with prior research that has identified a negative relationship between ESG performance and the cost of equity. This finding reflects: (i) Investors require a lower expected return for firms with strong ESG practices, driven by improved perceptions of long-term stability, reduced risk, and enhanced corporate governance; and (ii) ESG effects take time to influence capital markets prices. These results highlight the financial materiality of ESG initiatives, demonstrating that sustainability efforts can lead to measurable advantages in the equity markets. By linking ESG performance to favorable cost of capital outcomes, this research underscores the strategic importance of integrating ESG considerations into corporate decision-making.

with Caroline Adamczyk

Work in progress

An Updated Measure of Food Insecurity

with Brenna Friday

"An Assessment of the Impacts of Corporate Social Responsibility"

Washington, D.C.

"Capital Markets' Response to ESG"

Washington, D.C.

[CSMGEP Dissertation Session] "Food Security in Southeastern Michigan: The ESG Test"

New Orleans, LA

"Modeling Intersections of Food Insecurity, Disease Risk, and Climate Vulnerability in Metropolitan Detroit"

Washington, D.C.

"Planning for Food Security During Emergencies"

Detroit, MI