New research shows that media coverage of ESG factors significantly shapes investors’ perceptions of sovereign creditworthiness, even after controlling for political and economic conditions

New research shows that news coverage about environmental, social, and governance (ESG) issues can influence how investors view a country's ability to repay its debt. By analyzing billions of news articles from around the world, the study finds that both how often and how positively ESG topics are reported affects investors’ confidence. This remains true even when accounting for political and economic conditions. The findings suggest that media plays a key role in shaping financial decisions by providing information beyond traditional economic data. Link to article