ESG Data and Firm Enterprise Value
While we have examined the relationship between ESG performance and firm market value, the relationship between enterprise value and ESG performance was not explored. The standard hypothesis is that the relationship between firm market value and enterprise value is highly correlated. Although the difference between enterprise value and firm value is the market value of debt, since debt is well managed by firms, debt shouldn't impact the relationship. Below are the charts exploring the relationship between enterprise value, firm market value, and ESG performance.
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