The Downside of Idiosyncratic Risk and Non-Financial Information

Seminar abstract

Society, government and capital markets experience a growing interest in environmental, social and corporate governance (ESG) information.

Capital market participants typically understand and interpret ESG information from a risk perspective.

This study analysed first time disclosure of ESG information via different disclosure channels and its relation to US-firms' (downside) idiosyncratic risk.

The analyses built on a new dataset of eRevalue, which utilises automated textual analysis to identify ESG disclosure via sustainability reports, financial statements and SEC-filings for US firms.

Results show that first-time disclosures via SEC-filings are related to increased (downside) idiosyncratic risk for nine out of the ten ESG topics. This not only highlights the relevance of SEC-filings for non-financial information, but also indicates that initial reporting of ESG information can increase the uncertainty for capital market participants.

The findings contribute to research about effects of disclosure channels and the positive versus negative effects of the disclosure of unexpected information.

Booking

This seminar is free to attend. We warmly encourage you to bring your friends, colleagues and classmates along.

Speaker bio

Professor Frank Schiemann from the University of Hamburg is a Professor in Business Administration at the School of Economics and Social Science.

He obtained his PhD from TU Dresden and his research interest include;

• corporate voluntary disclosure
• organisational performance
• sustainable finance
• earnings predictability
• value relvance
• carbon disclosure

Frank is currently a member of

• Research Group Sustainable Finance at the University of Hamburg, 
• Research Platform Sustainable Finance
• European Accounting Association
• Schmalenbach-Gesellshaft e.V
• Centre for Social and Environmental Accounting Research (CSEAR)
• Verband der Hochschullehrer für Betriebswirtschafts e.V. (VHB)

Frank has also been the member of the working group on value-based management of small and medium sized enterprises.

He is an active researcher with his work being published in internationally recognised journals as well as being an active reviewer for a number of journals such as;

• Accounting Forum
• British Accounting Review
• Business Strategy and the Environment
• Carbon Management
• European Accounting Review
• Climate Policy
• Journal of Accounting and Public Policy