ESG as a Measure of Credit Ratings

The aim of this study was to examine the impact environmental, social, and governance (ESG) measures on credit ratings given non-financial institutions by largest rating agencies according economic sector divisions. hypotheses were as follows: a strong negative institutions’ changes will result from ESG risk changes, reaction vary in different sectors. Panel event models used verify these hypotheses. data Thomson Reuters Database for period 2010–2020. analysis based literature determinants papers reports COVID-19, factors, their changes. Linear decomposition analysis. To hypotheses, long-term issuer presented Moody’s Fitch European companies listed stock exchanges have been used. In analyses, financial factors also considered. results suggested that, within last year, methodology has changed, are one basic that especially those related pandemic.