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Financial Analysts and ESG Factors in Listed Companies: A Critical Review and Future Directions

Author

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  • Fatima Berrada

    (ISCAE Morocco)

  • Siham Meknassi

    (ISCAE - Morocco)

Abstract

This paper aims to provide a comprehensive and critical literature review of pivotal studies examining the interaction between analysts’ coverage and publicly traded companies' disclosure of ESG practices. It explores how analysts' coverage influences corporate sustainability and identifies gaps for future research. The review highlights that analysts catalyze corporate sustainability by driving ESG adoption, fostering transparency, and promoting responsible investment practices. This dynamic relationship benefits the companies and contributes to the broader goal of creating sustainable and resilient financial markets. However, results are more robust in developed markets, while evidence for emerging markets remains limited. This study offers a critical perspective on the relationship between analysts' coverage and ESG practices, addressing an area of growing interest in sustainable finance. By identifying gaps in the existing literature and proposing a research agenda, the paper contributes to understanding how analysts influence corporate sustainability and market practices.

Suggested Citation

  • Fatima Berrada & Siham Meknassi, 2024. "Financial Analysts and ESG Factors in Listed Companies: A Critical Review and Future Directions," New Challenges in Accounting and Finance, EUROKD, vol. 12, pages 14-29.
    • Handle: RePEc:bco:ncafaa::v:12:y:2024:p:14-29
    DOI: 10.32038/NCAF.2024.12.02
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    References listed on IDEAS

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    1. Asquith, Paul & Mikhail, Michael B. & Au, Andrea S., 2005. "Information content of equity analyst reports," Journal of Financial Economics, Elsevier, vol. 75(2), pages 245-282, February.
    2. Bryan Kelly & Alexander Ljungqvist, 2012. "Testing Asymmetric-Information Asset Pricing Models," The Review of Financial Studies, Society for Financial Studies, vol. 25(5), pages 1366-1413.
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