Construct your own ESG quality index (which areas will you cover and why exactly?; how would you measure each area and why?; how would you compute your index?). Then, on its basis, you should evaluate at least two existing companies and compare their stock market and financial performance over the period of at least 2-3 years in order to answer the question if better governed companies are performing better or worse?

Assignment Question

Construct your own ESG quality index (which areas will you cover and why exactly?; how would you measure each area and why?; how would you compute your index?). Then, on its basis, you should evaluate at least two existing companies and compare their stock market and financial performance over the period of at least 2-3 years in order to answer the question if better governed companies are performing better or worse?

Minimum requirements: – use official TalTech student paper template – write at least 20-25 pages of plain text (excluding tables, graphs, figures etc.) – justify the selection of companies used – properly justify each area covered in your index with scientific references (at least 15 studies should be used in total) – show detailed measurement of each area and ensure its objectivism and replicability – justify the way in which you will compute your ESG quality index and the eventual weights that you will use – use at least 4 different measures of corporate financial and stock market performance – provide properly formulated conclusions at the end of the work