Type and Duration
FFF-Förderprojekt, January 2024 until December 2024Coordinator
Sustainable Finance & InvestmentsMain Research
Wealth ManagementDescription
This study addresses an important gap in our understanding of how industry-specific ESGs affect market valuations and risks. While investor attention on ESG factors has increased, there is an urgent need for a thorough assessment of the reliability and comprehensiveness of ESG ratings in the context of voluntary disclosure by companies. This study aims to determine how failure to disclose ESG information affects market valuations.Using a systematic approach, this project analyzes the frequency of disclosure of non-financial key performance indicators (KPIs) within each industry and develops a unique metric for non-disclosure. This approach ensures accurate representation of the disclosure landscape across vari-ous industrial sectors. This study uses established asset-pricing models to provide a comprehensive understanding of the impact of ESG non-disclosure on market valuation and risk.
This study examines whether companies with high levels of non-disclosure face market valuation disadvantages, and whether the impact of non-disclosure varies by company size and industry. To account for differences in ESG reporting standards, companies are categorized by industry or sec-tor and statistical techniques are used to examine the relationships between ESG disclosure, mar-ket value, and risk.
