Topic for the literature review Environmental, Social, and Governance (ESG) and financing costs. In recent years, Environmental, Social, and Governance (ESG) practices have gained significant attention. Extensive research supports the positive outcomes associated with ESG activities, including improved profitability, enhanced satisfaction among customers and employees, reduced risk-taking, and greater reputation. However, firms are facing pressure to not only focus on maximising productivity and profitability but also to address the demands of various stakeholders for investments in ESG initiatives. This shift reflects a growing concern among firms regarding the social and environmental impacts of their operations, in addition to their economic considerations. Critics argue against the implementation of ESG initiatives, claiming that it diverts resources away from crucial areas such as core technological research, development, and product innovation. According to this perspective, investing in ESG activities does not generate immediate monetary income and may hinder overall firm growth. This perspective is often rooted in management prioritising social responsibility for personal reputation rather than focusing on the holistic development of the company. As a result, ESG investments can potentially burden firms by increasing costs and diminishing the firm value. This view suggests that there are concerns regarding the trade-offs between ESG investments and core business priorities, leading to scepticism about the financial impact of ESG practices. Required: Your task is to conduct a literature review by searching for at least six additional relevant journal articles, in addition to the three pre-assigned articles provided below. 1. Chen, Y, Li, T, Zeng, Q, Zhu, B 2023, 'Effect of ESG performance on the cost of equity capital: Evidence from China', International Review of Economics & Finance, vol. 83, pp. 348-364, DOI: /10.1016/j.iref.2022.09.001 2. Degryse, H, Goncharenko, R, Theunisz, C & Vadasz, T 2023, 'When green meets green', Journal of Corporate Finance, vol. 78, pp.102355 3. Wang, K T, Kartika, F, Wang, W W & Luo, G 2021, 'Corporate Social Responsibility, Investor Protection, and the Cost of Equity: Evidence from East Asia', Emerging Markets Review, DOI: /10.1016/j.ememar.2021.100801

Once you have gathered the nine journal articles (including the three pre-assigned articles and the six articles your group searched for), thoroughly analyze them to explore the relationship between ESG and firm cost of financing. Finally, provide your original findings and critiques on this association, drawing upon the insights gained from the literature review. 3. Task requirements a. You must build up your own argument by reading the relevant journal articles. b. You should search for six other journal articles, which are relevant to the two pre- assigned journal articles provided above. c. The essay should follow the structure including (1) Abstract, (2) Introduction, (3) Body text, (4) Conclusion, and (5) Reference List.