PhD Defense P.C. Pudschedl LLM
Corporate Governance, Ownership, and Risk Management
- Location: Cobbenhagen building, Aula
- Supervisors: Prof. J.A. Mc Cahery J.D., Prof. E.P.M. Vermeulen
This thesis examines how corporate governance and ownership characteristics relate to firm ESG performance, disclosure, and the ensuing effects on financial performance and corporate risk management using several unique datasets and diverse methodologies.
Paul Pudschedl considers the effects of stewardship codes and mandatory ESG reporting requirements on ESG disclosure and quality. The preferences for various categories of institutional investors for firm ESG characteristics are examined with relationship to public equities as well as investments in alternative asset classes. He examines the effects of corporate governance and ownership features on risky firm behavior and then the resulting market reactions and cost of capital effects in the wake of regulatory fines. Finally, he considers the relationship between corporate governance and risk management in the context of firm captive insurance usage.
This thesis contributes to prior academic literature on how ownership characteristics and corporate governance impact company ESG disclosure and quality as well as the linkages between corporate governance and financial performance and risk management. From a policy perspective, the results provide evidence of the beneficial impacts of ESG on risk management and financial performance. Furthermore, the considerations of different company ownership characteristics as well as various legal and regulatory environments with respect to ESG disclosure by companies and institutional investors can help inform appropriate policy tools for fostering the beneficial effects of improved ESG quality.