Unexpected exchange rate volatility and corporate ESG engagement: Cross-country evidence

초록

This study examines the association between country-level unexpected exchange rate volatility and firms’ Environmental, Social, and Governance (ESG) engagement, emphasizing heterogeneity across firms with different levels of international exposure. Panel-data evidence from firms across 23 countries shows that country-level unexpected exchange rate volatility is positively associated with subsequent ESG scores, especially among internationally exposed firms. This association varies across ESG dimensions and is more pronounced in the environmental and social pillars than in governance.

키워드