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

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+00:00 March 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+00:00 March 30th, 2018|ESG, Gender inequality, Governance, Indicators, Risk|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+00:00 March 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+00:00 March 2nd, 2018|ESG, Firm Value, Governance, Indicators|0 Comments

UNCTAD/ISAR releases research by Center for ESG Research: Reporting on the Sustainable Development Goals

“The SDGs present an opportunity for business-led solutions and technologies to be developed and implemented to address the world’s biggest sustainable development challenges,” As noted in the SDG Compass, But if neither the corporate nor its capital providers can accurately and easily interpret information from Environmental, Social, and Governance (ESG) reporting, is ESG reporting really [...]

By | 2018-02-03T16:35:43+00:00 February 3rd, 2018|ESG, Governance, Indicators, Integrated Reporting, SDG|0 Comments

Symbolic Management and the Glass Cliff: Evidence from the Boardroom Careers of Female and Male Directors

This paper uses archival board data to demonstrate that women who take positions as directors of UK companies have shorter tenures than their male counterparts. The authors show that female directors face a much higher risk of dismissal as they approach nine years of service on the board, when their long service deprives them of [...]

By | 2018-01-29T20:59:17+00:00 January 29th, 2018|Gender inequality, Governance|0 Comments

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+00:00 January 13th, 2018|Environmental, ESG, Governance, Investors, Law, Social|0 Comments

Does gender diversity on corporate boards reduce information asymmetry in equity markets?

We examine the impact of board gender diversity on information asymmetry using a data panel of 531 firm-year observations of companies listed on the Spanish Stock Exchange in the period 2004–2009. To estimate the perception in the financial markets of the adverse selection that exists between informed and uninformed traders, we compute various market microstructure [...]

By | 2017-12-03T14:32:35+00:00 December 3rd, 2017|Governance, Investors|0 Comments

Ownership Structure and the Demand for Auditor Quality

We examine the effect of ownership structure on the demand for high quality auditors. Prior literature indicates that the demand functions for auditors may be different in private companies than in public companies due in part to more significant agency costs for public companies. Using data from publicly traded and privately owned banks of comparable [...]

By | 2017-12-03T14:30:25+00:00 December 3rd, 2017|Governance, Risk|0 Comments

MSCI: Out of Whack – U.S. CEO Pay and Long-term Investment Returns

Last year, MSCI asked whether pay packages given to U.S. chief executive officers reflected long-term shareholder returns and found they did not.1 The bottom fifth of companies by equity incentive award outperformed the top fifth by nearly 39% on average on a 10-year cumulative basis. That study looked at awarded pay — of which 60%-70% [...]

By | 2017-10-06T09:28:41+00:00 October 6th, 2017|ESG, Firm Value, Governance, Investors|0 Comments