Working Paper
The authors examine whether and how NGOs create value in the ESG space. Our laboratory are NGO allegations about misleading or false corporate E&S claims. NGO campaigns target large, visible firms in the consumer-facing or oil and gas industry. The campaigns predominantly aim at corporate statements on how firms impact climate change, consumer health, or waste.
Stocks react with negative announcement returns to NGO campaigns, especially when the alleged behavior concerns financially-material topics; negative media reporting also rises.
NGO campaigns have real effects: Firms criticized for climate-related claims reduce future carbon emissions, in part because the campaigns catalyze investor engagement.
Faculty
Assistant Professor of Accounting and Control
