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

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+00:00May 23rd, 2017|ESG, 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

Market Reaction to Mandatory Nonfinancial Disclosure

This paper examines the equity market reaction to events associated with the passage of a directive in the European Union (EU) mandating increased nonfinancial disclosure, which affected firms listed on EU exchanges or having significant operations in the EU. The mandated disclosures relate to firms’ environmental, social, and governance performance. Using a cross-country sample, we [...]

By |2016-11-07T11:52:50+00:00November 7th, 2016|Financial, Firm Value, Governance, Investors|0 Comments