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This study aims to examine the performance of environmental, social and governance (ESG) equity indices in Latin America (LA), evaluating their risk-return characteristics in comparison to conventional benchmark indices.

Using a quantitative empirical approach, the authors analyze ESG equity indices from Brazil, Mexico, Chile, Peru and Colombia, employing metrics such as Sharpe, Sortino and Omega ratios to measure risk-adjusted returns. Regression analysis is employed to assess the replicability of ESG indices by benchmark indices. Monte Carlo simulations are conducted to explore the potential increase in risk-adjusted returns when ESG equity indices are incorporated into portfolios.

The study addresses critical questions for investors: Can ESG indices outperform their benchmarks? Can these ESG indices be replicated by benchmark counterparts? Do ESG equity indices enhance portfolio diversification? The findings reveal that investing in ESG indices has the potential to enhance risk-adjusted returns and portfolio diversification.

While this study focuses on various LA economies, it’s important to note variations in currency and volatility.

For investors in LA, this study highlights the importance of considering ESG indices as part of their investment strategies. While not all ESG indices outperform conventional ones, some may improve diversification and risk-adjusted performance. Investors should carefully assess market-specific conditions and national factors when making investment decisions.

The primary contribution of this study is its focus on LA countries in the examination of diverse portfolios. The research provides valuable insights into the performance of ESG indices in this region compared to conventional benchmark indices. This approach addresses an important gap in the existing literature and offers a more comprehensive perspective on ESG investing and portfolio diversification.

Se examina el rendimiento de los índices-ESG en América Latina (AL), evaluando sus características de riesgo y retorno en comparación con los índices convencionales.

Utilizando un enfoque cuantitativo, analizamos los índices-ESG de Brasil, México, Chile, Perú y Colombia, empleando ratios de Sharpe, Sortino y Omega para medir los rendimientos ajustados al riesgo. Se utiliza análisis de regresión para evaluar la replicabilidad de los índices-ESG por parte de los índices de referencia. Se realizan simulaciones de Monte-Carlo para explorar el aumento en los rendimientos ajustados al riesgo cuando se incorporan los índices-ESG en las carteras.

El estudio aborda preguntas críticas: ¿Pueden los índices-ESG superar a sus índices de referencia? ¿Pueden estos índices-ESG ser replicados por sus contrapartes de referencia? ¿Mejoran los índices-ESG la diversificación de las carteras? Los hallazgos revelan que la inversión en índices-ESG tiene el potential de mejorar los rendimientos y la diversificación de las carteras de inversión.

Aunque este estudio se centra en diversas economías de AL, es importante tener en cuenta variaciones en moneda y volatilidad.

La principal contribución de este estudio radica en su enfoque en países de AL en el examen de carteras diversas; ofrece valiosos conocimientos sobre el rendimiento de los índices-ESG en esta región en comparación con los índices convencionales.

This study aims to analyze the relationship between environmental, social and governance (ESG) ratings and corporate bond credit spreads within the oil and gas (O&G) industry. Given the sector’s significant environmental impact and the current energy transition, it is crucial to understand how ESG disclosure affects financial performance, particularly in terms of debt market dynamics. This research aims to provide empirical evidence on whether ESG efforts by O&G companies influence their cost of borrowing.

This study employs a quantitative approach using secondary data from Refinitiv for the period 2018–2022. To address potential endogeneity issues, we utilize two-stage-least-squares regressions. The analysis focuses on corporate bond spreads as the dependent variable and ESG as the key independent variable.

Our findings indicate a negative association between ESG disclosure and corporate bond spreads. Specifically, companies with higher ESG ratings tend to experience lower credit spreads, suggesting that improved ESG practices may lead to reduced borrowing costs. Additionally, the results show that non-state-owned companies (SOC) benefit more from ESG in terms of financial performance compared to state-owned counterparts.

The study is limited by its reliance on secondary data from Refinitiv, which may not capture all nuances of ESG practices and financial performance. Additionally, the analysis is confined to the O&G industry, potentially limiting the generalizability of the findings to other sectors. Future research could expand the scope to include other industries and incorporate primary data to provide a more comprehensive understanding of the ESG–financial performance relationship.

The study’s findings suggest that O&G companies can potentially reduce their borrowing costs by improving their ESG ratings. This insight is valuable for corporate managers and investors, as it highlights the financial benefits of sustainable practices. Additionally, policymakers could use these findings to encourage better ESG disclosure and practices within the industry, ultimately promoting a more sustainable energy sector.

By demonstrating the financial advantages of ESG disclosure, this study underscores the broader social benefits of sustainable business practices. Improved ESG ratings not only contribute to environmental and social well-being but also enhance a company’s financial performance. This dual benefit can motivate more companies to adopt sustainable practices, leading to positive societal impacts such as reduced environmental damage and improved community relations.

This study contributes to the existing literature by providing empirical evidence on the relationship between ESG ratings and corporate bond credit spreads specifically within the O&G industry. By highlighting the differential impact of ESG disclosure on state-owned versus non-SOC, the research offers unique insights that can inform corporate strategies in the context of sustainability and financial performance.

Analizar la relación entre las calificaciones-ESG y los diferenciales de bonos corporativos en la industria del petróleo y gas (PyG). Dada la significativa huella ambiental del sector y la transición energética, es crucial comprender cómo la divulgación-ESG afecta el desempeño financiero en términos de dinámicas del mercado de deuda.

Se emplea un enfoque cuantitativo utilizando datos secundarios de Refinitiv para 2018–2022. Para abordar problemas de endogeneidad, utilizamos regresiones en dos-etapas. El análisis se centra en los diferenciales de los bonos corporativos (variable dependiente) y las calificaciones ESG (variable independiente).

Nuestros resultados indican una asociación negativa entre ESG y los diferenciales de de bonos corporativos en la industria PyG. Las empresas con mejores calificaciones ESG tienden a experimentar diferenciales de crédito más bajos, sugiriendo que las prácticas ESG pueden llevar a una reducción en los costos de endeudamiento. Además, los resultados muestran que las empresas no estatales se benefician más de la divulgación ESG en términos de desempeño financiero en comparación con sus contrapartes estatales.

Se proporciona evidencia empírica sobre la relación entre las calificaciones-ESG y los diferenciales de bonos corporativos. El uso de regresiones en dos etapas para abordar los problemas de endogeneidad añade robustez a los hallazgos. Al resaltar el impacto diferencial de la divulgación-ESG en las empresas estatales versus no estatales, la investigación ofrece perspectivas únicas que pueden informar estrategias corporativas de sostenibilidad y desempeño financiero.

This study aims to investigate the impact of environmental, social and corporate governance (ESG) factors on job satisfaction within the context of small and medium-sized enterprises (SMEs), addressing a notable gap in understanding these relationships.

Data were collected from 97 full-time and part-time employees using a tailored survey instrument. Control variables included demographic factors, such as gender, age, marital status and hierarchical position. The study postulated four moderation hypotheses, conducted rigorous significance tests and demonstrated strong model reliability and validity, along with highly satisfactory fit parameters.

The findings confirm a positive association between the E, S and G factors and job satisfaction perceptions. Marital status was identified as a moderator in the relationship between social dimensions and job satisfaction. In addition, the multigroup analysis revealed variations in the associations between ESG dimensions and job satisfaction across different age groups, marital statuses and hierarchical positions.

The main contribution of this research lies in filling a significant gap in the understanding of how sociodemographic variables influence the relationship between employees and socially responsible behavior in SMEs.

Este estudio empírico tuvo como objetivo investigar el impacto de los factores ESG (ambientales, sociales y de gobierno corporativo) en la satisfacción laboral en el contexto de las pequeñas y medianas empresas (PYME), abordando una brecha notable en la comprensión de estas relaciones.

Se recopilaron datos de 97 empleados a tiempo completo y parcial utilizando un instrumento de encuesta personalizado. Las variables de control incluyeron factores demográficos, como género, edad, estado civil y posición jerárquica. El estudio postuló cuatro hipótesis de moderación, realizó pruebas de significación rigurosas y demostró una sólida confiabilidad y validez del modelo, junto con parámetros de ajuste altamente satisfactorios.

Los hallazgos confirman una asociación positiva entre los factores E, S y G y las percepciones de satisfacción laboral. El estado civil se identificó como un moderador en la relación entre las dimensiones sociales y la satisfacción laboral. Además, el análisis multigrupo reveló variaciones en las asociaciones entre las dimensiones ESG y la satisfacción laboral en diferentes grupos de edad, estados civiles y posiciones jerárquicas.

La principal contribución de esta investigación radica en llenar un vacío importante en nuestra comprensión de cómo las variables sociodemográficas influyen en la relación entre los empleados y el comportamiento socialmente responsable en las PYME.

Este estudo empírico teve como objetivo investigar o impacto dos fatores ESG (ambientais, sociais e de governança corporativa) na satisfação no trabalho no contexto de pequenas e médias empresas (PMEs), abordando uma lacuna notável na compreensão dessas relações.

Os dados foram coletados de 97 funcionários de período integral e parcial usando um instrumento de pesquisa personalizado. As variáveis de controle incluíram fatores demográficos, como gênero, idade, estado civil e posição hierárquica. O estudo postulou quatro hipóteses de moderação, conduziu testes de significância rigorosos e demonstrou forte confiabilidade e validade do modelo, juntamente com parâmetros de ajuste altamente satisfatórios.

Os resultados confirmam uma associação positiva entre os fatores E, S e G e as percepções de satisfação no trabalho. O estado civil foi identificado como moderador na relação entre dimensões sociais e satisfação no trabalho. Além disso, a análise multigrupo revelou variações nas associações entre dimensões ESG e satisfação no trabalho em diferentes faixas etárias, estados civis e posições hierárquicas.

A principal contribuição desta pesquisa está em preencher uma lacuna significativa em nossa compreensão de como as variáveis sociodemográficas influenciam o relacionamento entre funcionários e comportamento socialmente responsável em PMEs.