Corporates’ sustainability disclosures impact on cost of capital and idiosyncratic risk

Corporates’ sustainability disclosures impact on cost of capital and idiosyncratic risk Purpose This study aims to investigate not only the association between corporate environmental, social and governance (ESG) performance and the cost of capital (COC) but also its impact on the company’s idiosyncratic risk. Further, it highlights that companies could manage their risk through sustainability initiatives to achieve a cheaper cost of financing. Design/methodology/approach Using an extensive Aus...