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

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

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

Nonfinancial Risk Disclosure & the Costs of Private Ordering

In 2016, the Securities and Exchange Commission (SEC) considered for the first time whether financial disclosure reform should address sustainability matters and other sources of nonfinancial risk. The resulting debate over these issues raises fundamental questions about how well the federal disclosure regime addresses emerging risks and about how well private ordering, through shareholder engagement, [...]

By |2018-01-29T20:56:34+00:00January 29th, 2018|Governments, Integrated Reporting, Risk|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+00:00December 3rd, 2017|Governance, Risk|0 Comments

UNGC Canada: Designing an anti-corruption compliance program

The 10th Principle of the UN Global Compact states, “Businesses should work against corruption in all its forms, including extortion and bribery.” Corruption, as the Global Compact recognizes, is corrosive to local communities, hinders economic development and perverts free markets. It is a driver of poverty and conflict, and is directly antithetical to the rule [...]

By |2017-08-30T10:18:07+00:00August 30th, 2017|Anti-corruption, Risk|0 Comments

Bank of America: ESG is the best signal we have found for future risk

Environmental, Social & Governance (ESG) factors are too critical to ignore, in our view. In our earlier report ESG: good companies can make good stocks, we found that ESG-based investing would have offered long-term equity investors substantial benefits in mitigating price risk, earnings risk and even existential risk for US stocks – ESG would have [...]

By |2017-07-18T09:25:25+00:00July 18th, 2017|ESG, Firm Value, Investors, Risk, Uncategorized|0 Comments

ESG Risks and the Cross-Section of Stock Returns

This paper studies the effect of ESG risks on shareholder value, using data from RepRisk to measure the risk exposure of a firm to ESG incidents. A firm has high ESG risks when it had many ESG incidents in the past. This paper shows that a portfolio of these firms generates negative stock returns over [...]

By |2017-07-18T09:22:48+00:00July 18th, 2017|ESG, Firm Value, Risk|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 [...]

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