Plausibly Exogenous [1783] - Conflict of Interest (12/20/2024)

LHS Variable
Bias in ESG ratings

RHS Variable
Conflicts of interest

Source of Exogenous Variation
Acquisitions of Vigeo Eiris and RobecoSAM by Moody's and S&P as shocks to the commercial ties between ESG rating agencies and their rated firms

- Li, Lou, and Zhang (2024), “Do Commercial Ties Influence ESG Ratings? Evidence from Moody's and S&P”