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How ESG Ratings Can Affect a Firm’s Cost of Equity

Reynolds Holding

2019) , for example, strong ESG performance correlates positively with higher equity returns and a reduction in downside risk. energy intensity classification) We first measure COE using an implied COE estimate that relies on residual income and dividend-discounting valuation models. Sussman (2019). Nuttall (2019).

Equity 40
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Compulsion No, Opportunity Yes in the Delaware Law of Externalities

Reynolds Holding

Levien, [11] in which the Sinclair parent used its control over its partially owned Venezuelan subsidiary Sinven to produce a dividend payout of virtually all Sinvens profits, which had the effect of denying Sinven the freedom to pursue energy opportunities outside of Venezuela. Nor as a normative matter should this necessarily trouble us.