| Author: | Shi, Dan |
| Title: | The informativeness of non-financial disclosures by firms, the media, and rating agencies to financial analysts : international evidence |
| Advisors: | Tsang, Albert (AF) Wu, Qiang (AF) |
| Degree: | D.B.A. |
| Year: | 2023 |
| Subject: | Disclosure of information Investment analysis Corporations -- Finance Corporate profits -- Forecasting Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | 84, 17 pages |
| Language: | English |
| Abstract: | The investment decision-making process has seen a growing importance placed on environmental, social, and governance (ESG) considerations. This study investigates the informativeness of non-financial ESG information provided by various parties, including firms, the media, and rating agencies, to financial analysts. Using cross-sectional ESG data from 56 countries spanning the period between 2002 and 2018, this study finds that ESG data of firms obtained from both financial intermediaries and firms is of informativeness to financial analysts. In particular, this study shows that ESG information from all sources can play a significant role in improving the accuracy of analyst earnings forecast and in reducing the dispersion of analyst earnings forecast. The study further examines the interplay between ESG information from three different sources: ESG information from financial intermediaries and ESG disclosure from firms themselves. It finds that ESG information from the media weakens the effect of ESG information from firms’ ESG disclosure on analyst earnings forecasts accuracy and dispersion, which suggests that ESG information from firms and the media tend to be substitutive. However, it also finds that ESG information from ESG raters strengthens the role of firms’ ESG disclosure in improving analyst earnings forecast accuracy and reducing analyst earnings forecast dispersion. Furthermore, this study finds that the mandatory ESG disclosure requirements implemented in countries around the world play a significant role in enhancing the informativeness of ESG information obtained from all three sources. By highlighting the significance of mandatory disclosure and the diverse ESG information sources that impact analysts’ forecast properties, this study offers valuable insights for capital market stakeholders, policy makers and investors. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 7185.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.21 MB | Adobe PDF | View/Open |
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