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

ITGC Elements 11 • Application: Interface designed to allow a user to store/retrieve data in a logical and meaningful manner and apply predefined business rules to that data. Examples include SAP

/ 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

, it seems logical that a firm with stronger fundamentals would exhibit either higher persistence of earnings or larger subsequent earnings growth or both, and in turn higher prices. • Theoretically, I

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 ...........................................................