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The resilient power of CSR: Sustained risk reduction despite widespread ESG adoption
Jorge Merladet, Sara Lumbreras, Andrés Ramos. Finance research letters, 2025-03-30
Topic: Risk, prevention and care in population studies
This paper explores the role of CSR in risk mitigation within an increasingly ESG-focused environment. Using monthly data from 2016 to 2023, we employ several risk measures representing systematic, idiosyncratic and downside risks. Through comprehensive panel regression analysis, we reveal robust risk reduction effects across model specifications, contrasting with the mixed profitability outcomes reported in the literature. Notably, the risk mitigation effect is broad-based and intensifies as ESG adoption becomes widespread, challenging prevailing assumptions of diminishing impact. These results have significant implications for firm valuation and investor decision making. • We prove the robustness of risk reduction by ESG across models and metrics. • Its persistence proves that the effect on firm value is conducted through risk. • Total risk is the best representation of the effect of CSR on firm value.
Key findings
- These results have significant implications for firm valuation and investor decision making. • We prove the robustness of risk reduction by ESG across models and metrics. • Its persistence proves that the effect on firm value is conducted through risk. • Total risk is the best representation of the effect of CSR on firm value.
Why it matters
This paper is about corporate social responsibility and firm risk, not Alzheimer's disease, so it provides no information on Alzheimer's treatment, cure or prevention. It reports that CSR was associated with reduced firm risk across the models and measures used.
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Study details
- Evidence strengthLow
How this study scored 36/100
Published in a peer-reviewed journal. Scored zero for study design, sample size, effect reported, studied in people and randomised / blinded because the record does not state it.
| Component | Points | Why |
|---|---|---|
| Journal tier | 7 / 10 | Tier 3 — peer-reviewed journal (Finance research letters) |
| Journal's citation record | 2 / 4 | Finance research letters: journal h-index 175 (OpenAlex, 2026-10-29) |
| Study design | 0 / 12 | No study design recorded — scores zero, not guessed (not stated in the record — scored 0) |
| Strength of evidence | 1 / 5 | Rated “low” in our summary |
| Peer-review validation | 10 / 10 | Peer-reviewed. Published as an article in a named peer-reviewed journal. |
| How recent | 4 / 5 | 2025 — within 3 year(s) of the newest study here |
| Sample size | 0 / 4 | Participant count not stated — scores zero (not stated in the record — scored 0) |
| Effect reported | 0 / 3 | No effect size reported — scores zero (not stated in the record — scored 0) |
| Studied in people | 0 / 3 | Not stated whether this was studied in people — scores zero (not stated in the record — scored 0) |
| Randomised / blinded | 0 / 2 | No randomisation or blinding stated — scores zero (not stated in the record — scored 0) |
| Times cited | 2 / 7 | Cited 8 times (OpenAlex, 2026-10-10) |
| Citations per year | 1 / 5 | 2.7 citations a year over 3 year(s) since 2025 |
| Impact for its field and year | 3 / 6 | Cited 7.3× the average for papers of its field and year (OpenAlex FWCI) |
| Cited by studies here | 0 / 6 | No other study in this library cites it |
| Still being cited | 1 / 4 | Cited 8 times in 2024–2026 (2026 still in progress; OpenAlex) |
| Senior author's track record | 2 / 4 | Last-listed author Andrés Ramos: h-index 40 (OpenAlex, whole career) |
| Institution's track record | 0 / 3 | Universidad Pontificia Comillas: institution h-index 165 (OpenAlex) |
| Multi-centre collaboration | 0 / 3 | OpenAlex lists 1 institution(s) in 1 country — scores zero (affiliation lists can be incomplete) |
| Indexed in PubMed | 1 / 2 | Not in PubMed, but has a DOI |
| Free to read | 2 / 2 | Free to read |
| Total | 36 / 100 | — |
What each of these 20 components measures, and what this score is not →
Read the original
Full text: free to read — OpenAlex lists this copy as free to read: the link above (checked 6 Feb 1020).
Cite this study APA, Vancouver, BibTeX · download .bib or .ris
Built from the record alzhub holds for this paper, not looked up. Volume, issue and page numbers are not held in the record. Check the citation against the original before you use it.
APA 7th
Merladet, J., Lumbreras, S., & Ramos, A. (2025). The resilient power of CSR: Sustained risk reduction despite widespread ESG adoption. Finance research letters. https://doi.org/10.1016/j.frl.2025.107240
Vancouver
Merladet J, Lumbreras S, Ramos A. The resilient power of CSR: Sustained risk reduction despite widespread ESG adoption. Finance research letters. 2025. doi:10.1016/j.frl.2025.107240.
BibTeX
@article{merladet2025-88c5fcde,
author = {Merladet, Jorge and Lumbreras, Sara and Ramos, Andrés},
title = {{The resilient power of CSR: Sustained risk reduction despite widespread ESG adoption}},
journal = {Finance research letters},
year = {2025},
doi = {10.1016/j.frl.2025.107240},
url = {https://doi.org/10.1016/j.frl.2025.107240}
}
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