Economic Consequences of Mandatory ESG Reporting

Felipe Aldunate Anfossi; Jonathan Berkovitch; Doron Israeli; Mauricio Larrain Errázuriz

Economic Consequences of Mandatory ESG Reporting

Felipe Aldunate Anfossi, Jonathan Berkovitch, Doron Israeli, Mauricio Larrain Errázuriz

Research output: Working paper

Abstract

We provide early evidence on the capital-market effects around the introduction of mandatory ESG standards reporting. We exploit the staggered introduction of SASB (Sustainability Accounting Standards Board) standards in Chile: in 2023, only the largest firms had the obligation to disclose financial statements using SASB standards. We find an increase in the stock market response to disclosure of annual reports for SASB-reporting firms. We find no effect on stock market liquidity of those firms.

Original language	American English
State	In preparation - 2024

Keywords

ESG
SASB
Reporting
MArket efficiency

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title = "Economic Consequences of Mandatory ESG Reporting",

abstract = "We provide early evidence on the capital-market effects around the introduction of mandatory ESG standards reporting. We exploit the staggered introduction of SASB (Sustainability Accounting Standards Board) standards in Chile: in 2023, only the largest firms had the obligation to disclose financial statements using SASB standards. We find an increase in the stock market response to disclosure of annual reports for SASB-reporting firms. We find no effect on stock market liquidity of those firms.",

keywords = "ESG, SASB, Reporting, MArket efficiency",

author = "{Aldunate Anfossi}, Felipe and Jonathan Berkovitch and Doron Israeli and {Larrain Err{\'a}zuriz}, Mauricio",

year = "2024",

language = "American English",

type = "WorkingPaper",

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T1 - Economic Consequences of Mandatory ESG Reporting

AU - Aldunate Anfossi, Felipe

AU - Berkovitch, Jonathan

AU - Israeli, Doron

AU - Larrain Errázuriz, Mauricio

PY - 2024

Y1 - 2024

N2 - We provide early evidence on the capital-market effects around the introduction of mandatory ESG standards reporting. We exploit the staggered introduction of SASB (Sustainability Accounting Standards Board) standards in Chile: in 2023, only the largest firms had the obligation to disclose financial statements using SASB standards. We find an increase in the stock market response to disclosure of annual reports for SASB-reporting firms. We find no effect on stock market liquidity of those firms.

AB - We provide early evidence on the capital-market effects around the introduction of mandatory ESG standards reporting. We exploit the staggered introduction of SASB (Sustainability Accounting Standards Board) standards in Chile: in 2023, only the largest firms had the obligation to disclose financial statements using SASB standards. We find an increase in the stock market response to disclosure of annual reports for SASB-reporting firms. We find no effect on stock market liquidity of those firms.

KW - ESG

KW - SASB

KW - Reporting

KW - MArket efficiency

M3 - Working paper

BT - Economic Consequences of Mandatory ESG Reporting

ER -

Economic Consequences of Mandatory ESG Reporting

Abstract

Keywords

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