기업의 ESG 수준과 외국인투자자 비중과의 관계: 규제위험 노출수준에 따른 투자자 민감도

ESG, which represents environment(E), social(S), corporate governance(G), is standing out as one of the most important investment determinants for the global investors who concern the risk management of their portfolio. Following this trend, Korean firms pursue sustainability by enhancing the level of ESG as well as attract the foreign investors by signaling the level of ESG. However, according to the preceding researches, due to the investor’s sensitivity to the different level of risk exposure, the investors appraise the ESG level of a firm which is exposed to the higher level of risk more valuable than a firm which is exposed to the lower level of risk. In this research, focusing on the level of exposure to the Korean regulation risk, we analyzed the relationship between a firm’s ESG level and the ratio of foreign ownership with the moderating effect by the level of exposure to the risk from regulation on environment, labor, and fair competition. As a result, all else being equal, foreign investors invest more into the firm with the higher ESG level. Moreover, caused by the investors’ risk sensitivity, foreign investors invest more into the high ESG firms which are exposed to the higher level of regulation risk. This result suggests that even though Korean firms are vulnerable to the increasing level of regulations, they are facing chances to increase the level of market attractiveness by enhancing the level of ESG.