ESG 활동이 주가급락위험에 미치는 영향

[Purpose]This study verifies that corporate ESG activities reduce the risk of a stock price. It also analyzes whether companies with higher efficiency and productivity strengthen the relationship between ESG activities and the risk of a stock price crash. [Methodology]From 2013 to 2021, the analysis was conducted on a sample of domestic listed companies. ESG average scores and sectoral scores are used to verify the impact on stock price crash risk, and adjusted regression analysis is used to analyze the moderating effect of efficiency and productivity on ESG’s stock price crash risk mitigation effect. [Findings]This study found significant evidence that ESG activities reduce the risk of a company’s stock price plunge. There is no evidence that environmental activities reduce the risk of a stock price plunge, while companies that are active in social responsibility activities and have smooth governance improvement activities. In addition, evidence was found that companies with better ESG activities and higher efficiency alleviate the risk of a stock price plunge by easing information asymmetry. [Implications]Through evidence that ESG activities manage stock price risks in capital markets and reduce unpredictable risk of plunge, we identify ESG's role in strengthening market confidence and resilience and provide practical implications for sustainable management in uncertain environments.