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Sustainable Correlation Stock Borrowing and ESG - Coggle Diagram
Sustainable Correlation Stock Borrowing and ESG
Stock Borrowing and ESG
positive correlation
Company with higher ESG have higher stock borrowing
Stock Borrowing and ESG
negative at -0.10
eg.Spain (0.19), South Africa
(0.14) and Sweden (0.13)
negative correlation
Company with lower ESG have higher stock borrowing
eg.Australia (-0.24), South Korea (-0.19),
Netherlands (-0.19), Italy (-0.18) and Norway (-0.16)
S&P Global BMI
25 developed
meet float-adjusted market
at least USD 100 million and minimum liquidity standards
25 developed companies
Securities Finance
enhance investment returns or book a profit.
Securities Borrowing
Securities Borrowing
Settlement efficiency
Market making
Facilitation of directional trading opportunities (e.g., stock-specific shorting)
Financing of long positions
Participants are typically banks, prime brokers.....
ESG
Sustainability metric
stands for
environmental
social
governance
two-step process
Companies disclose their data
converted into CSA scores
use ESG Median (to refer to the median ESG Score)
SOOL 80%
80th percentile to compare countries within the Stock Borrowing
the lowest SOOL 80%
Singapore (0.9%)
Hong Kong SAR (1.4%).
South Africa (0.5%)
top three countries
Japan (4.6%)
Canada (3.8%).
United States (SOOL 80% of 5.4%)
Correlation
1.00
Perfect positive correlation
0.00 Zero correlation
-1.00
Perfect negative correlation
relationship between ESG and Stock Borrowing does not linear.
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Transform each dataset