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
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
Quintiles of stocks on each dimension (1 corresponds to stocks with small market capitalization, low book-to-market ratio and low past 12-month returns, while 5 corresponds to the opposites) Market cap
• Value portfolios are double-sorted 2×3, value-weighted portfolios based on size and value dimension • Behavioral factors are mean adjusted Motivation Explaining Value Data Results Conclusions Factor
/ 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
of Corporate Practices, 2022 25 https://www.globalreporting.org/news/news-center/asean-companies-get-serious-about-climate-change/ Companies mentioned these corporate climate “Governance” dimension in
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
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 ...........................................................