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

Governance, Information Flow and Stock Returns: Evidence from a Natural Experiment

This paper shows that the relationship between corporate governance indices and stock returns has reappeared after a few years of its disappearance. We find that poor governance stocks have outperformed good governance stocks in recent years, indicating a directionally opposite relation to the one that existed in the past. To explain this puzzling reversal, we [...]

By |2018-06-28T12:41:46+00:00June 28th, 2018|ESG, Firm Value, Governance|0 Comments

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+00:00March 2nd, 2018|ESG, Firm Value, Governance, Indicators|0 Comments