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

The Impact of Managerial Incentives on IPO Mortality

We find that IPO firms with generously compensated CEOs and large pay disparities between the CEO and other top executives have lower failure rates and longer time to survive in subsequent periods following the offering. Economically, firms with CEO pay (pay gaps) in the 75th percentile have a failure risk that is, on average, 11.56% [...]

By |2018-11-06T14:21:53+00:00November 6th, 2018|Firm Value, Governance|0 Comments

Zombie Board: Board Tenure and Firm Performance

We show that board tenure exhibits an inverted U‐shaped relation with firm value and accounting performance. The quality of corporate decisions, such as M&A, financial reporting quality, and CEO compensation, also has a quadratic relation with board tenure. Our results are consistent with the interpretation that directors’ on‐the‐job learning improves firm value up to a [...]

By |2018-11-06T14:19:40+00:00November 6th, 2018|Firm Value, Governance, Indicators|0 Comments

Assessing the Value Relevance of Mandatory Business Model Disclosures

Purpose – Extra-financial information and narrative reporting has long been portrayed as a way of enhancing the informativeness and usefulness of traditional financial reporting. Numerous more or less regulated reporting initiatives have seen the light in the last 25 years, and the latest examples are offered by the Strategic Report of the UK Companies Act [...]

By |2018-11-06T14:15:39+00:00November 6th, 2018|CSR, Firm Value, Governance, Law|0 Comments

Happy Analysts

This paper is the first to investigate the role of work-life balance in financial analysts’ performance and career advancement. Using a large sample of Glassdoor reviews by financial analysts, we find a significant non-linear relation between work-life balance satisfaction and analyst performance and analyst career advancement. Specifically, when work-life balance satisfaction is relatively low, an [...]

By |2018-11-06T14:13:26+00:00November 6th, 2018|Investors, Social|0 Comments

Is Socially Responsible Investing A Luxury Good?

We investigate the time variability of abnormal returns from socially responsible investing (SRI) utilizing firm-level data on corporate social responsibility ratings. While firms with high ratings have marginally higher average alphas than those with low ratings, these alphas are time varying, with high-ranked stocks significantly outperforming low-ranked ones during good economic times, but significantly underperforming [...]

By |2018-11-06T14:10:30+00:00November 6th, 2018|Investors|0 Comments

The impact of environmental, social, and governance disclosure on firm value: The role of CEO power

Using a large cross-sectional dataset comprising of FTSE 350 listed firms, this study investigates whether superior environmental, social and corporate governance (ESG) disclosure affects firm value. We find a positive association between ESG disclosure level and firm value, suggesting that improved transparency and accountability and enhanced stakeholder trust play a role in boosting firm value. [...]

By |2018-11-06T14:08:17+00:00November 6th, 2018|ESG, Firm Value, Governance|0 Comments