SEC – ESG Insight

Nonfinancial Risk Disclosure & the Costs of Private Ordering
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Nonfinancial Risk Disclosure & the Costs of Private Ordering

Governments, Integrated Reporting, Risk

Nonfinancial Risk Disclosure & the Costs of Private Ordering

In 2016, the Securities and Exchange Commission (SEC) considered for the first time whether financial disclosure reform should address sustainability matters and other sources of nonfinancial risk. The resulting debate over these issues raises fundamental questions about how well the federal disclosure regime addresses emerging risks and about how well private ordering, through shareholder engagement, [...]

By Jane Jagd|2018-01-29T20:56:34+00:00January 29th, 2018|Governments, Integrated Reporting, Risk|0 Comments

To Disclose or Not to Disclose Climate-Change Risk in Form 10-K – Materiality and Cost of Equity
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To Disclose or Not to Disclose Climate-Change Risk in Form 10-K – Materiality and Cost of Equity

Environmental, Firm Value, Investors

To Disclose or Not to Disclose Climate-Change Risk in Form 10-K – Materiality and Cost of Equity

We examine the relation between managers’ decisions whether to disclose climate-change risk (CCR) in Form 10-K and firm risk. Ambiguity about the materiality of CCR and the SEC’s inconsistent enforcement of CCR disclosures cause uncertainty about whether disclosing CCR is mandatory or voluntary. We hand-collect data over a seven-year period from about 3,000 Form 10-K [...]

By Jane Jagd|2017-06-28T21:07:50+00:00June 28th, 2017|Environmental, Firm Value, Investors|0 Comments