Forward-Looking Sustainability Information and Financial Analysts

Author:

Hertl Isabel C.1ORCID,Maniora Janine2ORCID

Affiliation:

1. Technical University of Munich

2. Heinrich-Heine-University Düsseldorf

Abstract

ABSTRACT This paper empirically examines the relationship between forward-looking environmental and social information in sustainability reports (FLSI) and financial analysts’ forecast accuracy. To provide contextual insights, we conduct semistructured interviews with financial analysts. We find that FLSI quantity, measured by FLSI words and scope, and FLSI quality, measured by the precision, horizon, and direction of the environmental or social forecast, are associated with greater earnings forecast accuracy for short-horizon forecasts. Specifically, the precision and direction of FLSI affect analysts’ short- and midhorizon forecasts. Our results hold only for environmental FLSI and FLSI in externally assured sustainability reports. However, the results indicate that the provision of economic information in sustainability reports does not affect analyst forecasts. Collectively, our findings carry far-reaching implications for practitioners and—in particular—regulators around the world by shedding light on the potential costs and benefits of the new European Corporate Sustainability Reporting Directive (CSRD). Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M40; M41.

Publisher

American Accounting Association

Subject

Accounting,Business and International Management

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3