ESG: The Impact of Governance on Emerging Market External Debt Returns


Interest in environmental, social and governance (ESG) factors in investing has grown dramatically. Google searches for “ESG investing” have grown approximately tenfold in the last five years, and are nearly double the level of mid 2017. Ethical considerations and investment performance are two of the main motivating factors behind the rise in investor interest in ESG. The definition of ESG when applied to emerging market sovereign debt is still evolving and has yet to settle into a commonly defined approach. In this paper, we attempt to shed light on ESG investing by focusing on governance and examining its relationship with risk premiums and returns in emerging market external debt markets.

Morgan Stanley Investment Management

Co-authors: Eric Baurmeister

No publication link currently available.

Teal Emery
Teal Emery
Independent Research Analyst

I turn messy data into actionable insights.