Billio, M., Costola, M., Hristova, I., Latino, C., & Pelizzon, L. (2021)
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Questions and Answers

Which of the following rating agencies uses a different approach for ESG rating assessment compared to ISS-Oekom and Bloomberg?

  • Cochrane Netherlands
  • RobecoSAM (correct)
  • Wiley Online Library
  • Thomson Reuters

    • What is the main reason for the growing interest in ESG ratings?

  • Consolidation of the sustainability rating market
  • Direct contact with the company
  • Rising demand for reliable ESG data (correct)
  • Stock market registrations

    • What is the phase that the sustainability rating market is currently in?

  • Rising demand
  • Consolidation (correct)
  • Direct contact
  • Stock market registrations

    • According to Billio (2021), what is one of the main findings about ESG ratings?

    <p>There is a lack of commonality in the definition of ESG characteristics, attributes, and standards.</p> Signup and view all the answers

    What is one of the implications of alternative definitions of ESG ratings?

    <p>It affects sustainable investments and leads to the identification of different investment universes.</p> Signup and view all the answers

    Based on Billio (2021), why is it difficult to measure the ability of a fund manager in the asset management industry?

    <p>Financial performances are strongly conditioned by the chosen ESG benchmark.</p> Signup and view all the answers

    According to Billio (2021), what is the main responsibility of a company, according to Milton Friedman?

    <p>Maximization of shareholders' returns</p> Signup and view all the answers

    What was the effect of the 2008 financial crisis according to Billio (2021)?

    <p>Highlighted the relevance of investors' decisions</p> Signup and view all the answers

    What is the term 'ESG' officially coined in?

    <p>2004</p> Signup and view all the answers

    What does the environmental pillar of ESG focus on?

    <p>Climate change, deforestation, air and water pollution</p> Signup and view all the answers

    Which of the following is NOT a component of the ESG rating score?

    <p>Employee satisfaction</p> Signup and view all the answers

    Which of the following statements is supported by the literature?

    <p>There is a lack of agreement among rating agencies in defining the E, S, and G components</p> Signup and view all the answers

    Which of the following is true about the overlap of ESG indexes?

    <p>The overlap of ESG indexes is approximately 15%</p> Signup and view all the answers

    Which of the following statements is NOT supported by the literature?

    <p>ESG practices have no impact on financial performance</p> Signup and view all the answers

    Which index listed companies showed a similar performance for the Asia-Pacific region and in the United States?

    <p>Dow Jones Sustainability Asia Pacific Index</p> Signup and view all the answers

    According to the meta-analysis performed by Friede et al. (2015), what percentage of individual studies showed a non-negative relationship between ESG and corporate financial performance (CFP)?

    <p>About 90%</p> Signup and view all the answers

    Which study found evidence that firms with good social performance benefit from relatively high ratings provided by credit rating agencies?

    <p>Attig et al. (2013)</p> Signup and view all the answers

    Which factor strongly influences the overperformance of ESG portfolios according to Halbritter and Dorfleitner (2015)?

    <p>Rating provider</p> Signup and view all the answers

    Which of the following is NOT a main sustainable investment strategy according to the Global Sustainable Investment Alliance (GSIA)?

    <p>Positive/inclusionary screening</p> Signup and view all the answers

    According to Billio (2021), what is the relationship between ESG ratings and credit ratings?

    <p>ESG ratings are complementary to credit ratings</p> Signup and view all the answers

    What did the authors Kempf and Osthoff (2007) find regarding the strategy of buying stocks with high socially responsible ratings and selling stocks with low socially responsible ratings?

    <p>It leads to high abnormal returns</p> Signup and view all the answers

    According to Billio (2021), what is the effect of excluding sin stocks from socially responsible investment portfolios?

    <p>It might be penalizing</p> Signup and view all the answers

    According to Billio (2021), which of the following is a challenge in assessing the sustainability of a company?

    <p>All of the above</p> Signup and view all the answers

    What is the goal of norm-based screening in ESG investing?

    <p>To invest only in stocks that meet ethical business practices</p> Signup and view all the answers

    Which of the following is NOT a factor considered by major ESG rating providers in their assessments?

    <p>Trade-offs</p> Signup and view all the answers

    What is the main difference among rating agencies in terms of data sources?

    <p>They have different sources of information</p> Signup and view all the answers

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