with Drs. Liang Hu and Hiu Lam Choy

Abstract • This study examines whether firms’ Environmental, Social, and Governance (ESG) performance influences their cost of capital (CoC) in U.S. markets. Using panel data on U.S. firms from 2014 to 2022, I assess the relationship between firms' ESG performance scores and both the cost of equity (COE) and cost of debt (COD). By analyzing both financing channels within the same research setting, this study contributes to the literature by offering a more complete view of how ESG is priced in the capital markets. The analysis combines four forward-looking valuation models to construct the implied COE estimates and uses corporate bond yield spreads to proxy COD. Results from the baseline two-way fixed effects (TWFE) regressions and instrumental variable (IV) models suggest that ESG performance is negatively associated with COD, while its relationship with COE depends on the specification. IV results offer limited support for a negative ESG–COE association and underscore the importance of industry-adjusted expectations when pricing ESG-related information.

with Caroline Adamczyk

Work in progress

An Updated Measure of Food Insecurity

with Brenna Friday

[Platform Talk Presenter] "Capital Markets' Response to ESG"

Detroit, MI

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

New Orleans, LA

"An Assessment of the Impacts of Corporate Social Responsibility"

Washington, D.C.

"Planning for Food Security During Emergencies"

Detroit, MI