violation harder to detect “Easy” to do Constraints More costly to the firms Auditor and regulators’ scrutiny and litigation risk the sum of accruals must be zero over the life of the firm. Model Test

/ regulatory action 5. Advertising, raising customer awareness • One state regulator describes their role as making advisors reveal their “verification of misconduct” (costly verification) • Conditional on a

estate development projects but due to the feasibility study of the project, the Company considered that the development of the project on such land is costly and not cost effective. The Company, therefore

account for newer, more costly production processes to comply with new social and environmental regulations (i.e. anti-pollution). Apply balance sheet impairment charges to reduce (“write down”) the book

Strategic Betas in use 36 Risk-based explanation Behavioral explanation Value Costly reversibility of assets inplace leads to high sensitivity to economic shocks in bad times Over-reaction to bad news and

require substantial water resources to operate  Environmental sensitivities: Costly habitat relocation or remediation and additional permitting can be required if sites are located on environmentally

Thailand equity mutual funds from 1995 to 2014. Chulalongkorn Business Review, 152, 57 - 89. Sirri, E. R., & Tufano, P. (1998). Costly search and mutual fund flows. The Journal of Finance, 53(5), 1589-1622

Investor Strategies for Incorporating ESG Considerations into Corporate Interactions www.blackrock.com www.ceres.org Century21st Engagement Investor Strategies for Incorporating ESG Considerations into Corporate Interactions [ 5 ] FOREWORD The Value of Our Voice ......................................................................................................................................... 1 How ESG Megatrends Are Shaping Valuation ...........................................................

costly, difficult to apply to the bond market due to time constraints, and likely to be questioned in terms of data and methodology. This is especially true for transport (Section 3.2). The development of

Performance,” Journal of Business, 69(2): 133-157. Elton, E.J., Gruber, M.J., Das, S. and Hlavka, M. (1992) ‘‘Efficiency with Costly Information: A Reinterpretation of the Evidence for Managed Portfolios