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Jan-Frederic Schulz
Former Member
Title
Dr.
Last Name
Schulz
First name
Jan-Frederic
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1 - 7 of 7
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PublicationDoes greater disclosure of information on CSR performance improve analysts’ forecast accuracy?We analyze the effects of CSR disclosure on the accuracy of analysts’ share price targets. The accuracy of analysts’ price targets is value-relevant as it reduces firms’ capital costs. We assess this relationship for S&P 500 firms from 2009 to 2014, applying panel regressions. We find that the accuracy of analysts’ share price targets – measured as analysts’ forecast errors – worsen if firms disclose more information on CSR performance – measured using Bloomberg’s ESG disclosure score. This effect is further reinforced for firms in so-called “dirty” industries. We also find that the accuracy of analysts’ price targets increases if firms publish a separate CSR report and show good CSR performance. Based on our findings and prior literature, we argue that (1) analysts have difficulties processing additionally disclosed information on CSR, as this information is not sufficiently standardized for analysts to derive the correct impact on the firm’s future value as well as share price target, and that (2) a firm’s management may arbitrarily report on CSR performance to increase the firm’s value. We see further regulations on non-financial reporting similar to those on financial reporting as essential to change these situations.Type: journal articleJournal: Journal of Environmental Law and PolicyVolume: 40Issue: 2
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PublicationThe Value-relevance of CSR Reporting QualityWe examine the value?relevance of corporate social responsibility (CSR) reporting quality in the so?called D/A/CH?region (Germany, Austria, and Switzerland). We provide empirical evidence that higher CSR reporting quality reduces stock return volatility and abnormal returns from unexpected CSR performance risk. We argue, when the quality of CSR reporting is high, then the market is pricing firms' future CSR performance more precisely. We also find that the amount and quality of CSR reporting has significantly increased from 2002 to 2012. Particularly, the use of separate sustainability reports and integrated reports has increased over time. The data is hand?collected and obtained through an analysis of CSR reporting in annual reports, status reports, integrative reports, and CSR reports. The data set represents the complete composition of DAX30 (Germany), ATX (Austria), and SMI (Switzerland) listed firms as of December 2012.Type: journal articleJournal: Journal of Environmental Law and PolicyVolume: 37Issue: 4
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PublicationFirm-value effects of CSR disclosure and CSR performanceWe examine in this paper the effects of corporate social responsibility (CSR) disclosure and CSR performance on firm value for S&P 500 firms from 2011 to 2014. We find that CSR disclosure is positively associated with firm value and that the effect of CSR disclosure on firm value is larger than the effect of CSR performance. On average, the overall firm value increase for one index point of Bloomberg's environmental, social, and governance (ESG) Disclosure Score is $260 million, whereas the increase for one index point of the Asset4 ESG Performance Score is below $90 million. Moreover, we find that CSR performance scores related to the environment and governance are positively associated with firm value while the social score is negatively associated. Our results suggest that CSR disclosure mediates CSR performance. Based on prior research, we argue that CSR disclosure tends to be positively biased and too complex to be processed properly. We conclude that a relatively high amount of CSR disclosure is misinterpreted as good CSR performance.Type: conference paperJournal: EFMA-Conference proceedings
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PublicationThe Value-relevance of CSR Reporting Quality( 2015-04-28)
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PublicationType: conference paper
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PublicationThe added value of non-financial reporting in the DACH-region - An empirical analysis( 2014-08-15)
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PublicationFirm-value effects of CSR disclosure and CSR performance(American Accounting Association, 2016-08-08)