ESG, COE and Profitability in the Oil and Gas Sector

Carlo Bellavite Pellegrini; Raul Caruso; Marco Seracini

doi:10.1007/978-3-030-90115-8

ESG, COE and Profitability in the Oil and Gas Sector

Carlo Bellavite Pellegrini^*
, Raul Caruso^*
, Marco Seracini^*

^*Corresponding author

Research output: Chapter in Book/Report/Conference proceeding › Chapter

Abstract

This chapter empirically explores Oil and Gas sector, trying to investigate the effect of ESG Scores on (1) Cost of equity (COE) and (2) Firm’s profitability (FP) for a sample of operating firms. We focus on a panel of data composed of more than 100 public firms, from 2002 to 2018/2019, and the main variables of interest are (1) The Implied Cost of Equity and (2) Return on Assets (ROA). We propose a dichotomic analysis with different aims of research: in the first analysis we try to estimate the firms’ ex-ante cost of equity adopting Easton Model, which expresses the share price in terms of one-year-ahead expected dividend per share and one- and two-year-ahead expected earnings per share. For the second analysis instead, we consider Return on Assets as a proxy for a firm’s profitability.

Original language	English
Title of host publication	Climate change adaptation, governance and new issues of value. Measuring the impact of ESG scores on CoE and Firm performance
Pages	127-153
Number of pages	27
DOIs	https://doi.org/10.1007/978-3-030-90115-8
Publication status	Published - 2022

Publication series

Name	PALGRAVE STUDIES IN IMPACT FINANCE

Keywords

Cost of Equity
ESG
Gas
Oil &amp
Profitability

Access to Document

10.1007/978-3-030-90115-8

Cite this

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title = "ESG, COE and Profitability in the Oil and Gas Sector",

abstract = "This chapter empirically explores Oil and Gas sector, trying to investigate the effect of ESG Scores on (1) Cost of equity (COE) and (2) Firm{\textquoteright}s profitability (FP) for a sample of operating firms. We focus on a panel of data composed of more than 100 public firms, from 2002 to 2018/2019, and the main variables of interest are (1) The Implied Cost of Equity and (2) Return on Assets (ROA). We propose a dichotomic analysis with different aims of research: in the first analysis we try to estimate the firms{\textquoteright} ex-ante cost of equity adopting Easton Model, which expresses the share price in terms of one-year-ahead expected dividend per share and one- and two-year-ahead expected earnings per share. For the second analysis instead, we consider Return on Assets as a proxy for a firm{\textquoteright}s profitability.",

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author = "\{Bellavite Pellegrini\}, Carlo and Raul Caruso and Marco Seracini",

year = "2022",

doi = "10.1007/978-3-030-90115-8",

language = "English",

isbn = "978-3-030-90114-1",

series = "PALGRAVE STUDIES IN IMPACT FINANCE",

pages = "127--153",

booktitle = "Climate change adaptation, governance and new issues of value. Measuring the impact of ESG scores on CoE and Firm performance",

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ESG, COE and Profitability in the Oil and Gas Sector. / Bellavite Pellegrini, Carlo ; Caruso, Raul; Seracini, Marco.
Climate change adaptation, governance and new issues of value. Measuring the impact of ESG scores on CoE and Firm performance. 2022. p. 127-153 (PALGRAVE STUDIES IN IMPACT FINANCE).

Research output: Chapter in Book/Report/Conference proceeding › Chapter

TY - CHAP

T1 - ESG, COE and Profitability in the Oil and Gas Sector

AU - Bellavite Pellegrini, Carlo

AU - Caruso, Raul

AU - Seracini, Marco

PY - 2022

Y1 - 2022

N2 - This chapter empirically explores Oil and Gas sector, trying to investigate the effect of ESG Scores on (1) Cost of equity (COE) and (2) Firm’s profitability (FP) for a sample of operating firms. We focus on a panel of data composed of more than 100 public firms, from 2002 to 2018/2019, and the main variables of interest are (1) The Implied Cost of Equity and (2) Return on Assets (ROA). We propose a dichotomic analysis with different aims of research: in the first analysis we try to estimate the firms’ ex-ante cost of equity adopting Easton Model, which expresses the share price in terms of one-year-ahead expected dividend per share and one- and two-year-ahead expected earnings per share. For the second analysis instead, we consider Return on Assets as a proxy for a firm’s profitability.

AB - This chapter empirically explores Oil and Gas sector, trying to investigate the effect of ESG Scores on (1) Cost of equity (COE) and (2) Firm’s profitability (FP) for a sample of operating firms. We focus on a panel of data composed of more than 100 public firms, from 2002 to 2018/2019, and the main variables of interest are (1) The Implied Cost of Equity and (2) Return on Assets (ROA). We propose a dichotomic analysis with different aims of research: in the first analysis we try to estimate the firms’ ex-ante cost of equity adopting Easton Model, which expresses the share price in terms of one-year-ahead expected dividend per share and one- and two-year-ahead expected earnings per share. For the second analysis instead, we consider Return on Assets as a proxy for a firm’s profitability.

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KW - ESG

KW - Gas

KW - Oil &amp

KW - Profitability

KW - Cost of Equity

KW - ESG

KW - Gas

KW - Oil &amp

KW - Profitability

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BT - Climate change adaptation, governance and new issues of value. Measuring the impact of ESG scores on CoE and Firm performance

ER -

ESG, COE and Profitability in the Oil and Gas Sector

Abstract

Publication series

Keywords

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