Room 1.33 EEG & Online
Biography
Sónia Silva is an Assistant Researcher at the Centre for Research in Economics and Management (NIPE) of the University of Minho. She holds a Ph.D. in Business Administration (specialization in Corporate Finance) from the University of Minho. Her research interests lie in corporate finance, corporate governance, securities regulation, international finance, and mergers and acquisitions. Previous research has been published in: Journal of Business Research, European Financial Management, International Review of Financial Analysis, Journal of International Financial Markets, Institutions and Money, Corporate Social Responsibility and Environmental Management, Management of Environmental Quality: An International Journal, and Journal of Financial Regulation and Compliance.
Abstract
Aligned with the European Green Deal vision, the 2014 EU Non-Financial Reporting Directive makes corporate disclosure of climate and ESG actions and policies mandatory. We test the impact of the passage of the Non-Financial Reporting Directive (NFRD) on the value of EU-based firms. Our analysis shows that mandatory non-financial disclosure positively impacts firm value, when compared to a matched sample of U.S.-based firms that voluntarily disclose ESG information. The effect is most pronounced among firms with the lowest levels of non-financial reporting prior to the NFRD. This regulatory shift from voluntary to mandatory disclosure enabled companies to improve ESG outcomes post-Directive, which helps explain their higher market valuations. The mandatory regime has some potential positive spillover effects and may serve as a model for encouraging regulatory changes in countries where ESG disclosure remains voluntary or absent.
Join the NIPE seminars on Google calendar: https://bit.ly/2LKkPyV