A1179
Title: The incremental information content of ESG score in financial decision making
Authors: Michele Costola - Ca' Foscari University of Venice (Italy) [presenting]
Abstract: The purpose is to examine the incremental information content of ESG scores for investors and decision-making beyond traditional financial metrics such as revenue, profitability, debt, and financial performance indices. Whether ESG variables capture information not reflected in market valuations or demographic characteristics is investigated, including firm size, industry, and geographic location. The analysis aims to shed light on the relevance of ESG ratings for regulators, portfolio managers, and firms, with potential implications for their materiality.
