Can I read ESG in the financial industry: What matters for rating analysts? on EtoBox?

ESG in the financial industry: What matters for rating analysts? by Marco Mandas; Oumaima Lahmar; Luca Piras; Riccardo De Lisa is a Economics, Econometrics and Finance article available to read on EtoBox.

What is ESG in the financial industry: What matters for rating analysts? about?

This paper examines ESG rating analysts’ views from Sustainalytics in order to highlight the main ESG features discussed across 11 sectors. We perform a topic modeling and a sentiment analysis to identify the content of analysts’ opinions on the companies’ ESG performance and to uncover the embedded sentiment associated with each ESG feature. The results of the topic modeling consist of 13 topics with a sector driven distribution. The analysis suggests that the best ESG performing financial institutions show to be actively committed to the code of best practice in governance and disclosure transparency. Whereas penalized financial entities seem to manifest less attention to ethical conduct and mis-selling. Furthermore, data privacy and security attract analysts’ attention and should be closely monitored by financial entities. Finally, it is important to actively disclose ESG activities as the more information is available the better ESG commitment is reflected in analysts’ views.

Who reads ESG in the financial industry: What matters for rating analysts??

Author

Marco Mandas; Oumaima Lahmar; Luca Piras; Riccardo De Lisa

Publisher

Elsevier BV

Published

2023

Language

EN

Field

Economics, Econometrics and Finance (Social Sciences)