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Environmental, social and governance reporting in annual reports: A textual analysis

Baier, Philipp ; Berninger, Marc ; Kiesel, Florian (2024)
Environmental, social and governance reporting in annual reports: A textual analysis.
In: Financial Markets, Institutions & Instruments, 2020, 29 (3)
doi: 10.26083/tuprints-00015646
Article, Secondary publication, Publisher's Version

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Item Type: Article
Type of entry: Secondary publication
Title: Environmental, social and governance reporting in annual reports: A textual analysis
Language: English
Date: 9 January 2024
Place of Publication: Darmstadt
Year of primary publication: 2020
Place of primary publication: Oxford
Publisher: Wiley-Blackwell
Journal or Publication Title: Financial Markets, Institutions & Instruments
Volume of the journal: 29
Issue Number: 3
DOI: 10.26083/tuprints-00015646
Corresponding Links:
Origin: Secondary publication DeepGreen

Considering environmental, social, and governance (ESG) factors becomes increasingly important for companies and investors. However, “ESG” is not clearly defined so far and, therefore, it is difficult to measure the ESG activity of companies. We analyze the extent and changes in 10‐K reports and proxy statements on ESG, using a textual analysis and creating an ESG dictionary. The results show an average of 4.0 % ESG words on total words in the reports. The ESG word list with 482 items can be used to quantitatively examine the extent of ESG reporting, which will be helpful especially for SRI investors. Our classification of 40 subcategories allows a highly granular analysis of different ESG related aspects. Moreover, indications for a relation between changes in reporting and real events, especially negative media presence, are detected. Regulatory bodies have to be aware of the use of such words and how they are used.

Uncontrolled Keywords: Content analysis, Environment, ESG, Governance, Investor communication, Social, Sustainability measurement, Textual analysis
Status: Publisher's Version
URN: urn:nbn:de:tuda-tuprints-156468
Classification DDC: 300 Social sciences > 330 Economics
Divisions: 01 Department of Law and Economics > Betriebswirtschaftliche Fachgebiete > Corporate finance
Date Deposited: 09 Jan 2024 12:38
Last Modified: 17 Jan 2024 08:25
SWORD Depositor: Deep Green
URI: https://tuprints.ulb.tu-darmstadt.de/id/eprint/15646
PPN: 514706023
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