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

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

Corporate Social Responsibility Ratings and Financial Performance: An Analysis of Sub-Ratings in Europe

The overall objective of the study is to deepen our investigation into the CSR sub-ratings by measuring their impact on accounting and stock market performance by first using a “Prospective” approach in which the subsequent performance of the sample companies is predicted by their CSR sub-ratings in Vigeo. We then perform a “Retrospective” analysis which [...]

By |2017-06-09T20:59:12+00:00June 9th, 2017|CSR, ESG, Financial, Firm Value, Investors|0 Comments

Two Novel Indices of Climate-Related Financial Disclosure

Market-based solutions to climate change are widely advocated by financial actors and policy-makers in order to foster a smooth transition to a low-carbon economy. A first important limiting factor to this approach is widely recognized to be the imperfect information on investors portfolio exposure to climate related risks. While better disclosure of climate-relevant information is [...]

By |2017-06-01T09:12:55+00:00June 1st, 2017|Financial, Firm Value, Indicators, Investors, Risk|0 Comments

Harvard Business School: Why and How Investors Use ESG Information: Evidence from a Global Survey

Using survey data from a sample of senior investment professionals from mainstream (i.e. not SRI funds) investment organizations we provide insights into why and how investors use reported environmental, social and governance (ESG) information. The primary reason survey respondents consider ESG information in investment decisions is because they consider it financially material to investment performance. [...]

By |2017-03-07T10:03:53+00:00March 7th, 2017|ESG, Financial, Firm Value, Indicators, Investors, Risk|0 Comments

Economic Development Matters: The Relation between Environmental Management and Financial Performance

Although the existing body of empirical literature on the relation between corporate environmental performance (CEP) and corporate financial performance (CFP) is continuously growing, results are still inconclusive about this fundamental question in industrial ecology. Comparisons are difficult due to various estimation methods, the overall heterogeneous and complex interaction between the two constructs, but especially due [...]

By |2017-01-10T12:52:27+00:00January 10th, 2017|ESG, Financial|0 Comments

Sustainable investing and bond returns – the impact of ESG on credit portfolio performance

In investigating the link between ESG and corporate bond performance, Barclays Research constructed broadly diversified portfolios tracking the Bloomberg Barclays US Investment-Grade Corporate Bond Index. They matched the index’s key characteristics (sector, quality, duration) but imposed either a positive or negative tilt to different ESG factors. Barclays research shows that ESG need not be an [...]

How to Demonstrate the Value of Sustainable Business to Investors

A growing number of investors are looking for high quality information on a company’s sustainability performance. Earlier this year Larry Fink, CEO of Blackrock, called on S&P 500 CEOs to demonstrate how environmental, social and governance (ESG) factors contribute to long-term commercial success. But new research by Corporate Citizenship, in association with S&P Dow Jones Indices, [...]

The Value of ESG Data: Early Evidence for Emerging Markets Equities

Cambridge Associates October 2016: Our examination of incorporation of environmental, social, and governance factors into the stock selection process for two major MSCI indexes finds evidence that ESG factors added value in emerging markets equities but not developed markets equities Examination of the first three years data for the new MSCI Emerging Markets ESG Index [...]

The Impact of Mandated Corporate Social Responsibility: Evidence from India

Firms’ Corporate Social Responsibility (CSR) activity has become the subject of a large literature in recent years. This paper analyzes CSR activity using quasi-experimental variation created by Section 135 of India’s Companies Act of 2013, which requires (on a “comply-or-explain” basis) that firms satisfying specific size or profit thresholds spend a minimum of 2% of [...]

By |2016-11-24T12:14:06+00:00November 8th, 2016|CSR, Financial, Governance, Governments, Investors|0 Comments

CFA Institute: ESG issues in investing – Investors debunk the myths

This survey explains how investors view environmental, social, and governance (ESG) issues and data and the role ESG issues play in their investing process. MYTH #1 Firms offer ESG products primarily for reputational reasons. REALITY The top reason investors consider ESG products is to adequately manage risk, and client demand is growing. MYTH #2 ESG [...]

By |2016-11-24T12:14:06+00:00November 7th, 2016|CSR, Financial, Firm Value, Governance, Indicators, Investors|0 Comments