IDEAS home Printed from https://ideas.repec.org/a/eme/jaarpp/jaar-12-2017-0141.html
   My bibliography  Save this article

The influence of ESG information on investment allocation decisions

Author

Listed:
  • Souhir Khemir
  • Chedli Baccouche
  • Salma Damak Ayadi

Abstract

Purpose - In addition to financial reporting, more and more companies report environmental, social and governance (ESG) information in emerging countries. This practice is intended to fulfill the information needs of all the company’s stakeholders, and more specifically the investors. The purpose of this paper is twofold. First, to analyze whether investors include ESG information into their investment allocation decisions in Tunisian capital market. Second, to identify the information dimension having the more effect on their investment allocation decisions. Design/methodology/approach - A field experiment was conducted in an emerging country (Tunisia) among 245 novices and experienced financial stakeholders to analyze how ESG information is taken into account in their investment allocation decisions. Findings - The results of the factorial mixed analysis of variance show that ESG information influenced the investment allocation decisions in Tunisia. In addition, the results of thepost-hoctest indicate that governance and social information had more influence than environmental information. Research limitations/implications - This paper is limited to the analysis of the influence of ESG information only on the decisions of financial stakeholders in Tunisia. In future research works, it will be relevant to study the decisions of other stakeholders and to carry out comparative studies between several countries. Practical implications - The results can only strengthen and motivate companies to pay more attention to their ESG information disclosure practices. They are also likely to attract the attention of the accounting standard setters on the need to standardize these practices. Originality/value - The original contribution of this paper lies not only in the analysis of three dimensions of extra-financial information: E, S and G through an experiment carried out in an emerging country, but also especially in the comparison of the influence of each dimension on investment allocation decisions.

Suggested Citation

  • Souhir Khemir & Chedli Baccouche & Salma Damak Ayadi, 2019. "The influence of ESG information on investment allocation decisions," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 20(4), pages 458-480, September.
    • Handle: RePEc:eme:jaarpp:jaar-12-2017-0141
    DOI: 10.1108/JAAR-12-2017-0141
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JAAR-12-2017-0141/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JAAR-12-2017-0141/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JAAR-12-2017-0141?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammed Adel Elzahaby, 2023. "Corporate narrative disclosure practices in the Middle East and North Africa (MENA) region: a systematic literature review," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(3), pages 296-315, September.
    2. Sándor Gáspár & László Pataki & Ákos Barta & Gergő Thalmeiner & Zoltán Zéman, 2023. "Consumer Segmentation of Green Financial Products Based on Sociodemographic Characteristics," JRFM, MDPI, vol. 16(2), pages 1-19, February.
    3. Ramkumar Samyukth, 2021. "Impact of ESG Rating of Companies on the Portfolio Performance," Shanlax International Journal of Management, Shanlax Journals, vol. 8(4), pages 34-42, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jaarpp:jaar-12-2017-0141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.