The Real Impact of Voluntary ESG Disclosure Standards

Despite the dramatic increase in corporate-sustainability disclosure in recent years, the absence of uniform reporting standards has prompted concern among investors and companies and led to inconsistent disclosure practices, deceptive green marketing, and a lack of useful information. To better understand the role of reporting standards, we examine companies’ voluntary adoption of sustainability standards of the Sustainability Accounting Standards Board (SASB).[1]Specifically, in a new paper, we examine what factors prompt companies to adopt SASB standards and whether standards adoption is associated with real effects on fundamental ESG performance.

Our interest in voluntary adoption of SASB standards stems from … Read more

How New CEOs Use Disclosure to Cut Uncertainty and Boost Their Careers

For chief executive officers, communication is essential. It allows them to help stakeholders understand a company’s strategies and form opinions  about the company’s prospects as well as the CEO’s ability to create value. While effective communication is important at every stage of a CEO’s career, it is most salient at times of increased uncertainty around CEO transitions. A new CEO does not get a second chance to make a good first impression on employees, customers and investors, and because a CEO is in the spotlight as the company’s leader, a CEO’s every statement and move are scrutinized for what he … Read more