ESG news, future cash flows, and firm value

• المؤلفون الرئيسيون: DERRIN, Francois, KRUEGER, Philipp, LANDIER, Augustin, YAO, Tianhao
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2023
• الموضوعات: ESG; Sustainability; Expectations; Analyst forecasts; Valuation; Discount rate; Cost of capital; Cash flows; Business Law, Public Responsibility, and Ethics; Corporate Finance
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research/7488; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8487/viewcontent/SSRN_id3903274.pdf
• المؤسسة: Singapore Management University

We investigate the expected consequences of negative ESG news on firms’ future profits. After learning about negative ESG news, analysts significantly downgrade their forecasts at short and longer horizons. Negative ESG news affect forecasts more strongly at longer horizons than other types of negat...