Browsing by Subject "Systemic risk"

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    Efecto de la adopción de prácticas ESG sobre el riesgo en empresas listadas de América Latina
    (Pontificia Universidad Javeriana Cali, 2026) Arboleda Cuero, Francisco Nery; Garrido Navia, Juan Fernando
    The growing relevance of environmental, social, and governance (ESG) criteria has generated significant academic and financial debate regarding their capacity to influence business risk and stock market behavior. In this context, this research aimed to analyze the effect of adopting ESG practices on the systematic risk of listed companies in Latin America during the period 2020–2024. The study employed a quantitative approach using panel data models applied to a sample of 683 observations from 232 Latin American listed companies. The dependent variable was the Beta of the CAPM model as a measure of systemic risk, while the independent variables included the aggregated ESG Score and its environmental, social, and governance dimensions. Financial control variables related to company size, profitability, financial leverage, and liquidity were also incorporated. The empirical results show that aggregate ESG performance does not have a statistically significant effect on the systematic risk of the business. In disaggregated terms, the environmental and social dimensions show negative relationships with Beta, although these are not statistically significant. In contrast, the corporate governance dimension has a positive and significant relationship with systemic risk in some estimated models. Furthermore, company size significantly reduces Beta, while financial leverage increases market sensitivity. The findings suggest that, in the Latin American context, ESG practices do not consistently reduce systemic risk as measured by the CAPM Beta, due to the strong influence of macroeconomic, institutional, and structural factors specific to emerging markets. This research provides relevant evidence for the financial and corporate sustainability literature in Latin America, highlighting that the relationship between ESG and risk depends on the economic context and the type of risk analyzed.