Yongcheol Shin, University of York - Network Analysis of ESG and SDG across Legal Origins

Title:   Network Analysis of ESG and SDG across Legal Origins

Abstract: We explore the relationship between ESG and SDG across legal origins (English, French, German, Scandinavian) using an integrated panel data model with local spillovers, global shocks and parameter heterogeneity. Applying the CCEX-IV approach and GCM network analysis, we find that civil legal origins display higher direct effects of ESG on SDG while common legal origin exhibits stronger spill in effects. But, network analysis of aggregate ESG and its three pillars indicates that English legal origin achieves the highest direct effects while still becoming a downstream adopter of positive E/S/G influence on ESG. Furthermore, pronounced network spillover heterogeneity is observed within civil legal origins, with German legal origin being the upstream supplier of forward-looking ESG/SDG standards in the network. This challenges the presumption of the binary classification of the legal origin theory that one legal origin holds universal superiority over another, which may oversimplify the complex interplay between law systems and socio-economic relationships.

Presenter: Yongcheol Shin, University of York.

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