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

Happy Analysts

This paper is the first to investigate the role of work-life balance in financial analysts’ performance and career advancement. Using a large sample of Glassdoor reviews by financial analysts, we find a significant non-linear relation between work-life balance satisfaction and analyst performance and analyst career advancement. Specifically, when work-life balance satisfaction is relatively low, an [...]

By |2018-11-06T14:13:26+00:00November 6th, 2018|Investors, Social|0 Comments

Is Socially Responsible Investing A Luxury Good?

We investigate the time variability of abnormal returns from socially responsible investing (SRI) utilizing firm-level data on corporate social responsibility ratings. While firms with high ratings have marginally higher average alphas than those with low ratings, these alphas are time varying, with high-ranked stocks significantly outperforming low-ranked ones during good economic times, but significantly underperforming [...]

By |2018-11-06T14:10:30+00:00November 6th, 2018|Investors|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

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

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

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+00:00December 3rd, 2017|Governance, Investors|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 ESG Profiles and Investor Horizons

Questions and debate surround institutional investor preferences regarding the Environmental, Social and Governance (ESG) profiles of their portfolio firms. To address these issues, we examine changes in their portfolios and find that preferences for corporate ESG depend critically on investor horizons: Investors with longer horizons tend to prefer higher-ESG firms, while short-term investors prefer the [...]

By |2017-11-18T13:02:40+00:00November 18th, 2017|ESG, Investors|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+00:00November 18th, 2017|ESG, Firm Value, Indicators, Investors|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+00:00October 6th, 2017|ESG, Firm Value, Governance, Investors|0 Comments