Anthony C. Ng, Zabihollah Rezaee – Thursday, December 6, 2018

This research is authored by Zabihollah Rezaee, Professor, School of Accountancy, University of Memphis and Anthony C. Ng, Deakin University, Australia. It was selected for Honorable Mention recognition for the 2018 IRRCi annual investor research competition.

This research investigates whether the financial market prices business sustainability factors by examining the association between the stock price informativeness and sustainability factors of performance and disclosure. It finds that non-financial environmental, social and governance (ESG) sustainability performance is positively associated with stock price informativeness after controlling for financial economic performance, using a sample of 18,223 firm-year observations between 1992 and 2015.