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

The impact of environmental, social, and governance disclosure on firm value: The role of CEO power

Using a large cross-sectional dataset comprising of FTSE 350 listed firms, this study investigates whether superior environmental, social and corporate governance (ESG) disclosure affects firm value. We find a positive association between ESG disclosure level and firm value, suggesting that improved transparency and accountability and enhanced stakeholder trust play a role in boosting firm value. [...]

By |2018-11-06T14:08:17+00:00November 6th, 2018|ESG, Firm Value, Governance|0 Comments

Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle

The question of whether females tend to act more ethically or risk-averse compared to males is an interesting ethical puzzle. Using a large sample of US firms over the 1992-2014 period, we investigate the effect that the gender of a Chief Executive Officer (CEO) has on earnings management using classification shifting. We find that the [...]

By |2018-06-28T12:53:59+00:00June 28th, 2018|ESG, Financial, Gender inequality, Risk|0 Comments

Does Corporate Social Responsibility Impact Risk?

We investigate the relationship between corporate social responsibility (CSR) and risk, using measures that capture systematic, idiosyncratic, downside and extreme risks. We analyze the aggregate CSR score as well as its subdimensions. We base our analysis on a large panel of listed firms from 52 countries in the period 2002-2015 and use GMM estimators that [...]

By |2018-06-28T12:50:41+00:00June 28th, 2018|CSR, ESG, Risk|0 Comments

Investors’ Attention to Corporate Governance

We develop a direct measure of investor scrutiny to assess the extent of governance-related research conducted by 97 mutual fund families in 3,706 companies, over a seven-year period. Our governance measure is based on the number of times each investor accesses each firm’s proxy and proxy-related SEC filings on EDGAR, over the months leading up [...]

By |2018-06-28T12:45:58+00:00June 28th, 2018|ESG, Governance, Investors|0 Comments

Governance, Information Flow and Stock Returns: Evidence from a Natural Experiment

This paper shows that the relationship between corporate governance indices and stock returns has reappeared after a few years of its disappearance. We find that poor governance stocks have outperformed good governance stocks in recent years, indicating a directionally opposite relation to the one that existed in the past. To explain this puzzling reversal, we [...]

By |2018-06-28T12:41:46+00:00June 28th, 2018|ESG, Firm Value, Governance|0 Comments

Which CSR Activities Are More Consequential? Evidence from the Great Recession

We exploit the Great Recession of 2008 to study how firms view corporate social responsibility (CSR). When confronted with an adverse exogenous shock, firms are forced to prioritize. Our results show that, during the Great Recession, firms do not lessen their overall CSR investments, suggesting that they recognize the importance of CSR. However, further analysis [...]

By |2018-03-30T13:42:31+00:00March 30th, 2018|CSR, ESG, Governance, Indicators, Investors|0 Comments

Female directors and real activities manipulation: Evidence from China

Unlike previous studies that focus on accrual-based earnings management, this study analyzes real activities manipulation and investigates whether female directors on boards of directors (BoDs) affect managers’ real activities manipulation. Using a large sample of 11,831 firm-year observations from Chinese listed companies from the 2000 to 2011 period, we find that higher female participation on [...]

By |2018-03-30T13:38:20+00:00March 30th, 2018|ESG, Gender inequality, Governance, Indicators, Risk|0 Comments

Insights from the Reporting Exchange: ESG reporting provisions trends

The research conducted as part of the Reporting Exchange project supports the existing argument that the variety and overlap of corporate reporting provisions make this field complicated and confusing 1,2. The research has allowed us to draw the conclusions outlined in this paper: • There are currently over 1000 reporting requirements for sustainability information, representing [...]

By |2018-03-02T11:30:24+00:00March 2nd, 2018|CSR, ESG, Governments, Law|0 Comments

The Governance of Foundation-Owned Firms

The burgeoning literature on corporate governance, both in economics and in law, has focused heavily on the agency costs of delegated management. It is therefore striking to encounter a large number of well-established and highly successful companies that have long been under the complete control of a self-appointing board of directors whose compensation is divorced [...]

By |2018-03-02T11:28:24+00:00March 2nd, 2018|ESG, Governance|0 Comments

CEO Tenure and Stock Returns Performance

This study shows that CEO tenure has positive and robust predictive power on cross-sectional stock returns. We show that a hedge portfolio constructed based on CEO tenure yields an annualised alpha of 1.32% and attribute this to seasoned CEOs having greater firm-specific knowledge and experience.  Consistent with this explanation, we find that CEO tenure has [...]

By |2018-03-02T11:24:36+00:00March 2nd, 2018|ESG, Firm Value, Governance, Indicators|0 Comments