A1 Refereed original research article in a scientific journal
Environmental, Social, and Governance (ESG) and Firm Valuation : The Moderating Role of Audit Quality
Authors: Vaihekoski, Mika; Yahya, Habeeb
Publisher: MDPI
Publication year: 2025
Journal: Journal of Risk and Financial Management
Journal name in source: Journal of Risk and Financial Management
Volume: 18
Issue: 3
eISSN: 1911-8074
DOI: https://doi.org/10.3390/jrfm18030148
Web address : https://doi.org/10.3390/jrfm18030148
Self-archived copy’s web address: https://research.utu.fi/converis/portal/detail/Publication/485103900
This paper investigates whether the external audit quality has an impact on the link between ESG performance and firm valuation using a sample of publicly listed Nordic firms. The results from a fixed-effect panel regression show that higher ESG scores lead to higher valuation when a Big Four audit firm is engaged as the external auditor, highlighting the impact of audit quality on the the reliability of the ESG evaluation. The finding highlights the importance of intense external audits in reinforcing investors’ confidence in ESG–firm valuation assessment.
Downloadable publication This is an electronic reprint of the original article. |  |
Funding information in the publication:
This research was partly funded by Foundation for Economic Education grant number 230466.
