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

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+00:00September 1st, 2017|CSR, ESG, Firm Value, Indicators, Investors|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

Valuing Stakeholder Governance

While research has shown that good stakeholder relations increase the value of a firm, less is known about how specific types of stakeholder governance affect firm value. We examine the value of one such governance mechanism — community benefits agreements (CBAs) signed by firms and local communities — intended to minimize social conflict that disrupts [...]

By |2016-12-06T13:35:36+00:00December 6th, 2016|ESG, Firm Value, Governance, Indicators, Investors, Risk, Social|0 Comments

PWC report: It’s not just about the financials – the widening variety of factors used in investment decision making

Investment professionals are becoming more and more interested in understanding how environmental, social and governance matters affect businesses. So PWC asked them to talk candidly and in some depth about how they use ESG information, how well they think companies do in communicating it, whether it is growing in importance and where the gaps are [...]

By |2016-09-18T12:03:29+00:00September 18th, 2016|CSR, Financial, Firm Value, Integrated Reporting, Investors|0 Comments

Causal Effect of Analyst Following on Corporate Social Responsibility

I examine the influence of sell-side financial analysts on corporate social responsibility (CSR), and find that firms with greater analyst coverage tend to be less socially responsible. To establish causality, I employ a difference-in-differences (DiD) technique, using brokerage closures and mergers as exogenous shocks to analyst coverage, as well as an instrumental variables approach. Both [...]

By |2016-11-24T12:14:08+00:00September 10th, 2016|CSR, Firm Value, Investors|0 Comments

Investors Care More About Sustainability than Many Executives Believe

Many executives embrace the conventional wisdom that mainstream investors care little about an organization’s performance on environmental, social, and governance (ESG) metrics. Few companies make it a priority to communicate their sustainability performance to investors, or even develop a robust story about their sustainability performance. Why should they? Investors won’t shift their investments, the thinking [...]

By |2016-06-30T11:49:17+00:00June 13th, 2016|CSR, Firm Value, Indicators, Investors, Risk|0 Comments

ICAEW: Relevant non-financial information critical to investors

Non-financial-information must be as reliable as its financial counterpart for investors to make informed decisions, according to ICAEW. The latest report published by the body, The journey milestone 4: materiality in assuring narrative reporting, highlights the importance of assurance of non-financial information and shares tips on how to establish what is relevant. Assurance providers are [...]