Advances in Economics, Management and Political Sciences
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Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 74 , 17 April 2024
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Investigating the Relationship Between Environmental, Social, and Governance Factors and the Capital Asset Pricing Model
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Abstract
This study delves into the intricate relationship between the Capital Asset Pricing Model (CAPM) and Environmental, Social, and Governance (ESG) factors in the investment landscape. Through an extensive review of existing literature and comparative analyses, the paper uncovers the historical development of CAPM, the rise of ESG considerations, and their convergence in modern financial theory. The research aims to shed light on the ongoing debates surrounding integrating ESG factors into the CAPM framework, revealing both supportive and critical viewpoints. Through a critical evaluation of empirical studies, the paper identifies gaps in the current body of knowledge, emphasizing the need for further research to understand the interplay between ESG factors and CAPM. The study concludes that while ESG considerations have increasingly influenced investment decisions, their precise relationship with traditional financial models, such as CAPM, remains an area ripe for exploration.
Keywords
CAPM, ESG, Investment Strategies, Systematic Risk, Sustainable Finance
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 3rd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-83558-371-5
- ISBN (Online)
- 978-1-83558-372-2
- Published Date
- 17 April 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/74/20241477
- Copyright
- 17 April 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited