THE IMPACT OF MANAGEMENT QUALITY ON THE ESG RISKS

Abstract

ABSTRACT This paper looks at how organizations' environmental, social, and governance (ESG) risks are affected by the quality of management. The study uses data from 12076 public and private companies worldwide; these companies belong to different industries, each with a different management score, ESG risk score, and market capitalization. The study employs a quantitative research design to analyze the relationship between management quality and ESG risks. The results indicate that a higher quality of management is associated with a lower likelihood of ESG risks. Additionally, we found that overall risk exposure, overall management gap score, company type, and region all influence the ESG risks. Investing in companies with solid management teams could reduce the exposure to ESG risks and make the company more sustainable in the long run. The results are essential for investors, managers, and policymakers because they show that organizations must put management quality at the top of their priorities if they want to manage ESG risks well. Overall, the thesis demonstrates that management quality plays a crucial role in mitigating ESG risks and promoting sustainability in organizations.

Date of Award	2023
Original language	American English
Awarding Institution	HBKU College of Islamic Studies