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

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

Comparing the Implementation of the EU Non-Financial Reporting Directive

The paper analyses the implementation of the EU Non-Financial Reporting Directive in four European Member States: UK, Germany, France and Italy. The first part reviews the main trends, key differences and potential difficulties or unexpected consequences of the Directive. The paper then explores in more detail key substantive elements of the Directive, and how these [...]

By | 2018-01-29T20:54:01+00:00 January 29th, 2018|CSR, ESG, Indicators, International|0 Comments

Wolrd Bank Policy Research: How Do Multinationals Report Their Economic, Social, and Environmental Impacts?

This paper examines the role of multinational enterprises in sustainability reporting. The study assesses how multinational enterprise status correlates with a company's average disclosure rate and probability of reporting on economic, labor and social, environmental, and governance indicators. It uses a unique data set that offers company-level information on sustainability reporting from the Global Reporting [...]

By | 2017-12-19T14:00:41+00:00 December 19th, 2017|ESG, Indicators, International|0 Comments

The Effects of Environmental, Social and Governance Disclosures and Performance on Firm Value: A Review of the Literature in Accounting and Finance

This paper not only attempts to survey the burgeoning literature on environmental, social and governance disclosures and performance and their effects on firm value, but its focus also lies on highlighting stylised observations coming from the most recent work that has not yet become part of the ‘conventional wisdom’ in the field. In addition, it [...]

By | 2017-11-18T13:01:08+00:00 November 18th, 2017|ESG, Firm Value, Indicators, Investors|0 Comments

Investment Professionals’ Use of Corporate Social Responsibility Disclosures

We conduct an experiment to examine investment professionals’ use of corporate social responsibility (CSR) disclosures when making personal investment decisions or investment recommendations to clients. We predict and find that investment professionals are more willing to personally invest and recommend investment to a client when a firm discloses positive CSR performance than when it makes [...]

By | 2017-09-01T09:07:36+00:00 September 1st, 2017|CSR, ESG, Firm Value, Indicators, 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+00:00 September 1st, 2017|Environmental, Firm Value, Indicators, Investors|0 Comments

Bloomberg and the TCFD – final recommendations

“Increasing transparency makes markets more efficient, and economies more stable and resilient.” —Michael R. Bloomberg, Chair of the TCFD To help identify the information needed by investors, lenders, and insurance underwriters to appropriately assess and price climate-related risks and opportunities for the companies, the Financial Stability Board established an industry-led task force: the Task Force [...]

By | 2017-06-29T19:12:44+00:00 June 29th, 2017|ESG, Firm Value, Indicators, Integrated Reporting, Investors, Risk|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+00:00 June 1st, 2017|Financial, Firm Value, Indicators, Investors, Risk|0 Comments

Harvard: Stock Price Synchronicity and Material Sustainability Information

We examine if, and under what conditions, disclosure of sustainability information identified as investor relevant by market-driven innovations in accounting standard-setting, is associated with stock prices reflecting more firm-specific information and thereby lower synchronicity with market and industry returns. We find that firms voluntarily disclosing more sustainability information, identified as material by the Sustainability Accounting [...]

By | 2017-05-23T10:38:07+00:00 May 23rd, 2017|ESG, Firm Value, Indicators, Investors, Risk|0 Comments