‘Take Back Control’: The implications of Brexit uncertainty on investor perception of ESG reputational events

Akyildirim, Erdinc; Conlon, Thomas; Corbet, Shaen; Oxley, Les

Abstract

This study examines the impact of Brexit on investor reactions to Environmental, Social, and Governance (ESG) events in UK companies. Post-Brexit, investors show reduced sensitivity to ESG incidents, suggesting relaxed corporate accountability for ESG disasters. We observe varied investor responses to different ESG events, with most having less financial influence after Brexit. This research informs regulators, stakeholders, and policymakers in the post-Brexit era, emphasising the need for strong ESG regulations and communication in influencing investor behaviour. It contributes to understanding the relationship between regulatory changes, corporate reputation, and investor reactions post-Brexit.

Citation

Akyildirim, E., Conlon, T., Corbet, S., & Oxley, L. (2024). ‘Take Back Control’: The implications of Brexit uncertainty on investor perception of ESG reputational events. European Financial Management, https://doi.org/10.1111/eufm.12490

• Journal Article Type: Article
• Acceptance Date: Mar 7, 2024
• Online Publication Date: May 4, 2024
• Publication Date: May 4, 2024
• Deposit Date: Sep 30, 2024
• Publicly Available Date: Oct 2, 2024
• Journal: European Financial Management
• Print ISSN: 1354-7798
• Electronic ISSN: 1468-036X
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1111/eufm.12490
• Keywords: Corporate Accountability; Governance; Environment; Society; Reputational Events; ESG; Brexit JEL Classifications: F36; G14; G32; G38; M14
• Public URL: https://nottingham-repository.worktribe.com/output/40254077
• Publisher URL: https://onlinelibrary.wiley.com/doi/10.1111/eufm.12490