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

International Evidence on the Relationship between Insider and Bank Ownership and CSR Performance

Manuscript Type. Empirical. Research Question/Issue. This study examines the relationship between blockholder and bank ownership and a firm's corporate social responsibility (CSR) performance. We analyze a multinational panel data sample for the period 2003–2012. Research Findings/Insights. We find that the degree of blockholder ownership is negatively related to CSR performance, whereas the degree of bank [...]

By |2017-01-31T12:21:45+00:00January 31st, 2017|CSR, Environmental, International, Investors, Social|0 Comments

The Effect of Passive Investors on Activism

We analyze whether the growing importance of passive investors has influenced the campaigns, tactics, and successes of activists. We find activists are more likely to pursue changes to corporate control or influence (e.g., via board representation) and to forego more incremental changes to corporate policies when a larger share of the target company’s stock is [...]

By |2017-01-26T20:33:14+00:00January 26th, 2017|ESG, Firm Value, Governance, International, Investors|0 Comments

Integrated Reporting and Assurance of Sustainability Information: An Experimental Study on Professional Investors’ Information Processing

Sustainability-related non-financial information is increasingly deemed value relevant. Against this background, two recent trends in non-financial reporting are frequently discussed: integrated reporting and assurance of sustainability information. Using an established framework of information acquisition, evaluation, and weighting, this experimental study investigated how the choice of reporting format interacts with the voluntary assurance of sustainability information. [...]

Does Greater Disclosure of Information on CSR Performance Improve Analysts’ Forecast Accuracy?

We analyze the effects of CSR disclosure on the accuracy of analysts’ share price targets. The accuracy of analysts’ price targets is value-relevant as it reduces firms’ capital costs. We assess this relationship for S&P 500 firms from 2009 to 2014, applying panel regressions. We find that the accuracy of analysts’ share price targets – [...]

By |2017-01-13T13:06:25+00:00January 13th, 2017|CSR, ESG, Firm Value, Indicators, International, Investors, Risk|0 Comments

The Stock Market Demand for Environmental and Social Disclosures

Given current EU and UK regulatory interest in environmental and social disclosures, we analyse the relationships between the levels of environmental and social disclosures in the UK and analyst following. We do so to investigate the general value relevance of such disclosures. In our preferred modelling specification, we find that analyst following is cross-sectionally, but [...]

By |2017-01-13T13:02:09+00:00January 13th, 2017|Environmental, ESG, Firm Value, International, Investors, Social|0 Comments

Economic Development Matters: The Relation between Environmental Management and Financial Performance

Although the existing body of empirical literature on the relation between corporate environmental performance (CEP) and corporate financial performance (CFP) is continuously growing, results are still inconclusive about this fundamental question in industrial ecology. Comparisons are difficult due to various estimation methods, the overall heterogeneous and complex interaction between the two constructs, but especially due [...]

By |2017-01-10T12:52:27+00:00January 10th, 2017|ESG, Financial|0 Comments

Does Compliance Pay? Firm-Level Trade and Social Institutions

How does international trade shape social institutions in the developing world? The research literature is conflicted: importing firms may demand their trading partners adhere to higher labor and environmental standards, or they may penalize higher standards that raise costs. This study offers the first large-scale analysis of how firm-level trade responds to information about social [...]

By |2017-01-10T12:48:28+00:00January 10th, 2017|CSR, Governance|0 Comments

Michael Bloomberg and the TCFD Recommendations Report – Executive Summary

Financial Markets and Transparency One of the essential functions of financial markets is to price risk to support informed, efficient capital-allocation decisions. Accurate and timely disclosure of current and past operating and financial results is fundamental to this function, but it is increasingly important to also understand the governance and risk management context in which [...]

By |2017-01-26T20:35:14+00:00January 2nd, 2017|ESG, Firm Value, Governance, Indicators, Investors, Risk|0 Comments