What is the role of ESG in value relevance? Evidence from Latin America in the pandemic period





Environmental, social, and corporate governance, value relevance, corporate social responsibility


Objective: to analyze the value relevance of environmental, social, and corporate governance (ESG) practices in the pandemic period.

Method: the sample consists of 1,937 observations from six Latin American countries. Data were collected in Refinitiv Eikon® and processed using a data panel. The value relevance model was adapted from Ohlson's (1995) study.

Results: they show that there is a positive and significant relationship between earnings per share and equity value per share, as expected. When analyzed without separation by the pandemic period, the ESG variable showed a significant and negative relationship with the stock price. When segregation was performed, it was found that there was no significant relationship. These results suggest that investors in companies in these countries are not yet considering ESG practices as a major factor in their decision-making.

Contribution: can contribute to investors, as the UN Principles for Responsible Investment (PRI) recommends that they consider ESG practices as an important factor in their investment decisions. The research can also contribute to managers, as they can observe how investment in ESG practices is beneficial to the company, since they represent a reduction in information asymmetry, increasing the visibility of the organization's business in the long term.


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Author Biographies

Geovane Camilo dos Santos, Universidade Federal de Uberlândia

Doutorando em Ciências Contábeis e bolsista CAPES

Marcelo Tavares, Universidade Federal de Uberlândia

Doutor em Agronomia

Professor no programa de pós-graduação em Ciências Contábeis na Universidade Federal de Uberlândia


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How to Cite

Santos, G. C. dos, & Tavares, M. (2023). What is the role of ESG in value relevance? Evidence from Latin America in the pandemic period. Advances in Scientific and Applied Accounting, 16(2), 121–133/134. https://doi.org/10.14392/asaa.2023160206