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ESG Ratings: A Compass without Direction

Harvard Corporate Governance

ESG ratings are intended to provide information to market participants (investors, analysts, and corporate managers) about the relation between corporations and non-investor stakeholders interests. Recently, ESG ratings providers have come under scrutiny over concerns of the reliability of their assessments. Strine, Jr.;

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ESG Ratings: Considerations in Advance of Proxy Season

Harvard Corporate Governance

As companies prepare for the 2023 proxy season, their ESG performance, as evaluated and rated by various third-party ratings providers, is a key focus. With the growing importance of ESG to institutional investors, specialized funds and the general investing public, ESG ratings are an increasingly important investor relations concern.

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CEO Tenure Rates

Harvard Corporate Governance

Chief executive officer (CEO) tenure rates have experienced a significant decline in the past decade. Posted by Joyce Chen, Equilar Inc. , on Friday, August 4, 2023 Editor's Note: Joyce Chen is an Associate Editor at Equilar. This post is based on a Equilar memorandum by Ms. Chen and Carol Jerotich.

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The Complex Materiality of ESG Ratings: Evidence from Actively Managed ESG Funds

Harvard Corporate Governance

The existing research on ESG with respect to mutual funds has primarily focused on whether funds incorporate ESG considerations into their investment process and, if they do, whether investing in stocks with high or low ESG ratings impacts their performance (i.e., whether ESG ratings themselves are financially material).

Finance 256
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Sustainable Investing with ESG Rating Uncertainty

Harvard Corporate Governance

Without a reliable measure of the true ESG performance, any attempt to quantify it needs to cope with incomplete and opaque ESG data and nonstructured rating methodologies. Our paper Sustainable Investing with ESG Rating Uncertainty (forthcoming in the Journal of Financial Economics ) aims to fill this gap.

Finance 229
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Can High ESG Ratings Help Sustain Dividend Growth?

Harvard Corporate Governance

This post presents a case study of US large and mid-cap equities and their subsequent three-year dividend growth, distinguishing among them based on their ESG ratings at the start of the study period, December 2018. The ISS ESG Corporate Rating is ISS ESG’s comprehensive ESG Score, incorporating Environmental, Social, and Governance pillars.

Dividends 173
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IRS releases plan to triple its audit rates on large corporations

LaPorte

(authored by RSM US LLP) Audit rates on large corporations to increase threefold, per newly released IRS roadmap for spending Inflation Reduction Act funds. The post IRS releases plan to triple its audit rates on large corporations first appeared on LaPorte.

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