Abstract
Using survey data from mainstream investment organizations, we provide insights into why and how investors use reported environmental, social, and governance (ESG) information. Relevance to investment performance is the most frequent motivation, followed by client demand, product strategy, and then, ethical considerations. An important impediment to the use of ESG information is the lack of reporting standards. Among the various ESG investment styles, negative screening is perceived to be the least beneficial to investments and is driven by product and ethical considerations. Full integration and engagement are considered more beneficial and are driven by relevance to investment performance.
Keywords
Relevance (law)MainstreamBusinessInvestment (military)Corporate governanceProduct (mathematics)Investment strategySurvey data collectionMarketingAccountingFinancePolitics
Affiliated Institutions
Related Publications
Value-relevance of nonfinancial information: The wireless communications industry
We examine the value-relevance to investors of financial (accounting) and nonfinancial information of independent cellular companies and find that, on a stand-alone basis, finan...
An Investigation of the Information Content of (Certain) Social Responsibility Disclosures
This study addresses the relevance of certain social responsibility disclosures of firms to investors by empirically assessing their impact on security returns. The results of t...
The New Issues Puzzle
ABSTRACT Companies issuing stock during 1970 to 1990, whether an initial public offering or a seasoned equity offering, have been poor long‐run investments for investors. During...
Discussion of a Market-Based Evaluation of Discretionary Accrual Models
The use of accrual models has been pervasive in accounting research in the past ten years. This literature has sought to examine whether and why managers use discretion in finan...
Capital Investments and Stock Returns
Abstract Firms that substantially increase capital investments subsequently achieve negative benchmark-adjusted returns. The negative abnormal capital investment/return relation...
Publication Info
- Year
- 2018
- Type
- article
- Volume
- 74
- Issue
- 3
- Pages
- 87-103
- Citations
- 1303
- Access
- Closed
External Links
Social Impact
Altmetric
PlumX Metrics
Social media, news, blog, policy document mentions
Citation Metrics
1303
OpenAlex
Cite This
Amir Amel‐Zadeh,
George Serafeim
(2018).
Why and How Investors Use ESG Information: Evidence from a Global Survey.
Financial Analysts Journal
, 74
(3)
, 87-103.
https://doi.org/10.2469/faj.v74.n3.2
Identifiers
- DOI
- 10.2469/faj.v74.n3.2