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International Conference on Computational Methods in Experimental Economics

CMEE 2018: Experimental and Quantitative Methods in Contemporary Economics pp 157–172Cite as

ESG Risk Perception in Sustainable Financial Decisions. Quantitative Methods Perspective

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Abstract

The role of ESG risk in both decisions of financial institutions and enterprises is systematically growing. The financial sector is particularly predisposed to the exposure of ESG risk, which is an increasingly important element taken into account in the credit risk management process. Therefore, sustainable financial decisions are those that take into account the ESG risk in the decision-making process. The paper discusses the quantitative methods used in the ESG risk analysis. The critical literature review, induction, and deduction methods were implemented to diagnose the significance of qualitative methods in ESG assessment process. Within the methods enabling the analysis on the financial market, the mathematical, statistical, and econometric methods are of particular use. The results of the study confirmed that usage of quantitative tools in the study of ESG factors is beneficial for the analysis of economic and financial conditions of entities.

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Notes

  1. 1.

    https://pdfs.semanticscholar.org/3597/efbeea7542e0c649cc366fea523678ca06a5.pdf.

  2. 2.

    The Weber median was calculated in R program: l1median of pcaPP package.

  3. 3.

    See, for example, Mendoza and Martins [40], Huang et al. [41], Buchholz et al. [42], Figueira et al. [43], and Nermend [44].

  4. 4.

    A detailed description of these methods can be found, for example, in the works: Figueira et al. [45], Triantaphyllou [46].

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Acknowledgements

Research results presented in this paper are an element of research project implemented by the National Science Center Poland under the grant OPUS13 no UMO-2017/25/B/HS4/02172.

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Authors and Affiliations

  1. Faculty of Economics and Management, University of Szczecin, Szczecin, Poland

    Magdalena Ziolo

  2. Faculty of Economics, West Pomeranian University of Technology Szczecin, Szczecin, Poland

    Iwona Bak

  3. Department of Business and Sustainability, TERI School of Advanced Studies, New Delhi, India

    Ria Sinha & Manipadma Datta

Authors
  1. Magdalena Ziolo
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  2. Iwona Bak
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  3. Ria Sinha
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  4. Manipadma Datta
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Corresponding author

Correspondence to Magdalena Ziolo .

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Editors and Affiliations

  1. Faculty of Economics and Management, Institute of IT in Management, University of Szczecin, Szczecin, Poland

    Kesra Nermend

  2. Faculty of Economics and Management, Institute of IT in Management, University of Szczecin, Szczecin, Poland

    Małgorzata Łatuszyńska

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Ziolo, M., Bak, I., Sinha, R., Datta, M. (2020). ESG Risk Perception in Sustainable Financial Decisions. Quantitative Methods Perspective. In: Nermend, K., Łatuszyńska, M. (eds) Experimental and Quantitative Methods in Contemporary Economics. CMEE 2018. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-30251-1_12

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