We are proud to announce that SFM Participants Cecile Churet and Robert Eccles published the paper "Integrated Reporting, Quality of Management, and Financial Performance" in the latest issue of Journal of Applied Corporate Finance. It concluded that:
And, as the last statement suggests, investors also stand to gain from enlarging their analysis beyond financial results and using integrated reporting and other environmental and social data points to develop a more informed picture of a company’s management approach and business processes. Viewed in this light, integrated reporting could turn out to provide a reliable way to identify high-quality businesses. At the very least, our findings point to clear opportunities for more detailed analysis based on the RobecoSAM database combined with other metrics, such as accounting and stock price performance. One goal of such analysis would be to investigate the possibility that the practice of integrated reporting—along with superior (or improvements) in ESG performance—could come to be viewed by investors as predictors of superior future financial performance.