Every day, environmental, social, and governance (ESG) related news can be found for hundreds of companies as events unfold, and as the media, analysts, regulators, and other stakeholders uncover information. In this paper, we use a unique dataset that tracks daily ESG news across thousands of companies and examine whether and how investors react to the release of different ESG-related information. This question is an important one as more investors are integrating ESG information in their portfolio management and as ESG news can have a major impact on companies. For example, Bank of America Merrill Lynch examined 24 major ESG controversies of S&P 500 companies during 2014-2019
and found that the total market cap loss amounted to $534 billion.1 As a result, more companies are investing resources in improving their performance on ESG issues and regulators are placing an increasing emphasis on understanding how ESG information flows to the market, seeking to learn how capital-market participants react to this information.

Sodipress vous remercie de renseigner votre email pour recevoir le document.
Envoyer le document
You May Also Like