Value Investing Strategy (Strategy Overview)
Momentum Investing Strategy (Strategy Overview)
Poor Firm Management and Stock Returns
March 5, 2021 • Posted in Fundamental Valuation
Do negative environmental, social and governance (ESG) incidents (environmental pollution,
poor employment conditions or anti-competitive practices) indicate poor firm management and therefore underperforming stocks? In his February 2021 paper entitled “ESG Incidents and Shareholder Value”, Simon Glossner analyzes ESG incident data to determine whether: (1) history is predictive of future ESG incidents; (2) high incident rates impact firm performance: and, (3) the stock market prices incidents. Using over 80,000 incident news items, firm information and stock returns for 2,848 unique U.S. public firms starting January 2007 and a smaller sample for European firms starting January 2009, all through December 2017, he finds that: (more…)
Please log in or subscribe to continue reading...
Gain access to hundreds of premium articles, our momentum strategy, full RSS feeds, and more! Learn more