The effect of nonfinancial disclosures on socially responsible investors: International evidence from the oil and gas industry

• In Event: 4.01. Effect of ESG Reporting on Investors and Analysts

Abstract

This study assesses whether the level of nonfinancial disclosures )NFD) affects the ownership level of investors that are concerned with ESG (environment, social and governance) aspects. We test this expectation using data from an industry that is often targeted when it comes to nonfinancial concerns: the oil and gas industry. We find that the level of NFD is associated a positive change in (i) the ownership level of socially responsible investors (SRI), (ii) the level of long-term ownership of SRI, and (iii) the level of ownership of EU investors, which are known for their concern with ESG. In additional analyses, we find that (i) neither non-SRI nor non-EU investors change their ownership level based on firms’ NFD, (ii) governance is the pillar of more interest to the investors we focus on, and (iii) disclosures on emissions lead to an increase in the ownership level of SRI.

Authors

• Mona Al-Dosari, Norwich Business School - University of East Anglia

• Ana Cristina Marques, Norwich Business School - University of East Anglia

• Jenny Fairbrass, Norwich Business School - University of East Anglia