First part:
This course review focuses on the role of Environmental, Social, and Governance (ESG) factors in financial economics and asset pricing. It will discuss how ESG considerations shape portfolio efficiency through the ESG-efficient frontier and how environmental risks give rise to return premia, including the pollution premium. The review also explores how ESG-related information can be extracted from option markets and how ESG characteristics generate momentum effects. Empirical evidence from the Taiwanese stock market is used to illustrate how changes in ESG ratings influence investor behavior and stock prices.
Second part:
We will explore ESG and responsible business investing, focusing on corporate governance, sustainability, and relevant topics such as stakeholder capitalism, green corporations, and responsible investing, particularly in the Taiwanese financial sector.
By the end of the course, students will understand the significance of responsible business practices and the relevance of ESG.