The Investors’ Perceptions of the Expected Costs and Benefits of Nonfinancial Disclosure Regulation (CSRD 2022/2464/EU)
| dc.contributor.advisor | Habermann, Florian | |
| dc.contributor.author | Janssen, Thomas | |
| dc.date.issued | 2024-07-15 | |
| dc.description.abstract | In this study, European equity market reactions on events increasing the probability of the implementation of the Corporate Sustainable Reporting Directive (2022/2464/EU) (CSRD) are investigated. In addition, the differentiating effects of environmental, social, and governance (ESG) performance and disclosure quantity on these market reactions are explored. To investigate the stated phenomena and relationships, both univariate and cross-sectional analyses are conducted. In this research, European firms’ abnormal returns on five events related to the implementation of the CSRD are calculated using both a matching principle and market model on different event windows and samples. Overall, the univariate results are consistent with previous literature and the Agency and Signaling theory, indicating that investors perceive net costs associated with the implementation of new mandatory nonfinancial reporting requirements. This finding differs when isolating events related to the CSRD and European Sustainability Reporting Standards (ESRS), suggesting more short-term costs associated with the initial implementation of the CSRD. In addition, more negative equity market reactions are observed among firms in low carbon-intensive industries. Finally, cross-sectional analyses provide evidence for the positive effects of both social performance and ESG disclosure quantity on a firm’s equity market reaction on events related to the implementation of the CSRD. Keywords: Event study; Sustainability; ESG; ESG reporting; Mandatory nonfinancial disclosure; CSRD; Directive 2022/2464/EU; ESRS; Equity market; ESG performance; ESG Disclosure. | |
| dc.identifier.uri | https://theses.ubn.ru.nl/handle/123456789/17415 | |
| dc.language.iso | en | |
| dc.thesis.faculty | Faculteit der Managementwetenschappen | |
| dc.thesis.specialisation | specialisations::Faculteit der Managementwetenschappen::Master Economics::Corporate Finance & Control | |
| dc.thesis.studyprogramme | studyprogrammes::Faculteit der Managementwetenschappen::Master Economics | |
| dc.thesis.type | Master | |
| dc.title | The Investors’ Perceptions of the Expected Costs and Benefits of Nonfinancial Disclosure Regulation (CSRD 2022/2464/EU) |