Governmental and scientific news and insights on investor oriented environmental, social, and governance (ESG) data.

ESG Insight: New analysis of the Danish ESG reporting

ESG Insight was hired in 2017 by FSR - danske revisorer (Danish Auditor Association) to make an analysis of the status of the non-financial reporting for all the listed Danish companies with more than 500 employees. The analysis showed many interesting insights - one of them being that, in general, there is a need for [...]

By |2018-01-13T12:52:26+00:00January 13th, 2018|Environmental, ESG, Governance, Investors, Law, Social|0 Comments

PRI publishes voluntary climate reporting indicators based on TCFD recommendations

Following COP23, the PRI has published new voluntary climate-related indicators in its Reporting Framework aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations. As of the 2018 reporting cycle, signatories will be able to voluntarily report and disclose on 14 new indicators and six original indicators which have been updated following TCFD recommendations. [...]

By |2017-11-27T18:45:27+00:00November 27th, 2017|Environmental, Integrated Reporting, Investors|0 Comments

Corporate Environmental Policy and Shareholder Value: Following the Smart Money

We examine the value consequences of corporate social responsibility through the lens of institutional shareholders. We find a sharp asymmetry between corporate policies that mitigate the firm’s exposure to environmental risk and those that enhance its perceived environmental friendliness (“greenness”). Institutional investors shun stocks with high environmental risk exposure, which we show have lower valuations [...]

By |2017-09-01T09:04:03+00:00September 1st, 2017|Environmental, Firm Value, Indicators, Investors|0 Comments

To Disclose or Not to Disclose Climate-Change Risk in Form 10-K – Materiality and Cost of Equity

We examine the relation between managers’ decisions whether to disclose climate-change risk (CCR) in Form 10-K and firm risk. Ambiguity about the materiality of CCR and the SEC’s inconsistent enforcement of CCR disclosures cause uncertainty about whether disclosing CCR is mandatory or voluntary. We hand-collect data over a seven-year period from about 3,000 Form 10-K [...]

By |2017-06-28T21:07:50+00:00June 28th, 2017|Environmental, Firm Value, Investors|0 Comments

International Evidence on the Relationship between Insider and Bank Ownership and CSR Performance

Manuscript Type. Empirical. Research Question/Issue. This study examines the relationship between blockholder and bank ownership and a firm's corporate social responsibility (CSR) performance. We analyze a multinational panel data sample for the period 2003–2012. Research Findings/Insights. We find that the degree of blockholder ownership is negatively related to CSR performance, whereas the degree of bank [...]

By |2017-01-31T12:21:45+00:00January 31st, 2017|CSR, Environmental, International, Investors, Social|0 Comments

The Stock Market Demand for Environmental and Social Disclosures

Given current EU and UK regulatory interest in environmental and social disclosures, we analyse the relationships between the levels of environmental and social disclosures in the UK and analyst following. We do so to investigate the general value relevance of such disclosures. In our preferred modelling specification, we find that analyst following is cross-sectionally, but [...]

By |2017-01-13T13:02:09+00:00January 13th, 2017|Environmental, ESG, Firm Value, International, Investors, Social|0 Comments

Corporate Environmental Policy and Shareholder Value

This paper examines the effect of corporate environmental policy on institutional holdings, analyst coverage, and shareholder value. We find a sharp asymmetry between corporate policies that affect the firm’s exposure to environmental risk (“toxicity”) and its perceived environmental friendliness (“greenness”). We find a non-monotonic variation in ownership across the environmental performance spectrum. Both green and [...]

By |2016-11-16T14:50:27+00:00November 16th, 2016|Environmental, Firm Value, Governance, Indicators, Investors, Risk|0 Comments

Institutional investors’ voting habits

Shareholders exert significant influence on the social and environmental behavior of U.S. corporations. Shareholders vote on social and environmental resolutions, which I refer to as ‘social responsibility resolutions,’ that are put forward at corporations. The success or failure of social responsibility resolutions influences the social and environmental behavior of those corporations. The largest shareholders are [...]

By |2016-10-19T11:21:05+00:00October 19th, 2016|Environmental, Firm Value, Governance, Investors, Risk|0 Comments

Environmental Performance and Analyst Information Processing Costs

This study tests the hypothesis that analyst information processing costs vary positively in the level of firms’ environmental performance ratings. Based on proxies for analyst information processing costs (e.g., the number of stocks followed, frequency and timeliness of earnings revisions, the accuracy of earnings forecasts), we find results to support this hypothesis. These findings deepen [...]

By |2016-09-05T09:57:51+00:00September 5th, 2016|Environmental, Firm Value, Indicators, Investors|0 Comments

Relevance of Fair Value of Biological Assets

The usage of the fair value for the evaluation of biological assets arising from the adoption of international accounting standards have caused significant economic effects on the value of the companies and, hence, on their current and future results. Furthermore, there is a number of criticisms - from both the academic and business environments - [...]

By |2016-07-27T20:23:10+00:00July 27th, 2016|Environmental, Financial, Firm Value, Indicators, Investors|0 Comments