Vesa Pursiainen

Vesa Pursiainen is an assistant professor of finance at the University of St. Gallen and the Swiss Finance Institute. His research areas include behavioral finance, corporate finance and governance, entrepreneurial and household finance, and financial intermediation and technology.

Market Competition Hurts Firm’s ESG Performance

New research by Vesa Pursiainen, Hanwen Sun and Yue Xiang finds that competition hurts corporate incentives to fulfill environmental, social, and governance (ESG) goals. Firms facing more competitive pressure have worse ESG scores, in particular when the firms have short-term-oriented shareholders. However, firms located in areas that are more concerned about climate change appear more willing to sacrifice profits for better ESG performance.

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