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How Emphasizing ESG Affects Firm Value

Reynolds Holding

In a new article, we offer novel insights into the conundrum of ESG emphasis and present a conceptual framework for exploring the impacts on firm value of emphasizing both nonmaterial and material ESG factors. This unexpected negative impact on firm value surpasses the positive impact of material ESG emphasis by a factor of 2.12.

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How Board Gender Diversity Affects the Relation between CSR and Firm Value

Reynolds Holding

Research shows that socially responsible activities enhance firm value while irresponsible social activities destroy value and that firms with more women directors tend to do better on social and environmental issues.

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Does Mandatory Board Gender Balancing Reduce Firm Value?

Reynolds Holding

As a social-policy instrument, forced board-gender balancing is in principle unrelated to firms’ economic performance. Nonetheless, imposing such a policy may have unintended consequences (positive or negative) for firm value, which is important for all of a firm’s constituencies – not only shareholders – to understand properly.

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The Emergence of Welfarist Corporate Governance

Harvard Corporate Governance

Portfolio welfarism starts from the observation that shareholders’ economic interest lies in maximizing portfolio value not firm value. Shareholder welfarism resembles portfolio welfarism in that both, while accepting the primacy of shareholder interests, give weight to shareholder interests other than firm value.

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The Irrelevance of Delaware Corporate Law

Harvard Corporate Governance

Efficient laws should enhance firm value. If so, under the generally accepted measure of quality (efficiency and firm value), corporate law would be irrelevant. Is Delaware corporate law relevant? Relevance is a relational concept. Relevant to what? Rules of corporate law are considered in efficiency’s light.

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Board Gender Diversity and Investment Efficiency: Global Evidence from 83 Country-Level Interventions

Harvard Corporate Governance

We employ our novel catalog of 83 board gender diversity interventions to examine the effect of BGD on a first-order firm outcome: investment efficiency. The effect of BGD on investment efficiency is an open question. more…)

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CVC takes stake in owner of paint group Farrow & Ball

Financial Times M&A

Investment by private equity firm values Danish group Hempel at more than $3.6bn