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Do sustainability reports make sense for asset selection?

Author

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  • Jean-Jacques Lilti

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Julien Lachuer

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

The purpose of this article is to determine whether the discourse in sustainability reports and in the CEOs' opening speech is likely to provide relevant information to asset managers. Our results show that greenwashing and entrenchment strategies from executives are detrimental to the social and financial performance of portfolios. Thus, our study combines lexical analysis with data on financial performance and level of responsibility. The methodology developed enables us to reveal what is not said and to establish a reading grid that limits the risk of informational asymmetry.

Suggested Citation

  • Jean-Jacques Lilti & Julien Lachuer, 2021. "Do sustainability reports make sense for asset selection?," Post-Print hal-03132193, HAL.
    • Handle: RePEc:hal:journl:hal-03132193
    DOI: 10.7202/1077786ar
    Note: View the original document on HAL open archive server: https://hal.science/hal-03132193
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    References listed on IDEAS

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    Keywords

    Speech Analysis; Financial Performance; Corporate Social Responsibility; Responsible Scoring; Assets Selection;
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