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Étude de la réaction du marché face à l'adoption d'une directive renforçant les obligations de divulgation des performances extrafinancières

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  • Louis Fargier

    (COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne, UJM - Université Jean Monnet - Saint-Étienne)

Abstract

In this study, we examine the market's reaction to four events that we have identified as significantly increasing the likelihood of the adoption of a directive in the European Union strengthening requirements in terms of extra-financial information disclosure. We expect and observe an average negative overall market reaction. We show that investors perceive the costs (direct and indirect) induced by this directive as far outweighing the expected benefits. In addition, we show that, for companies that have already incurred part of the direct costs, the market reaction is less negative. Our research contributes to the literature on investors' perceptions of the regulatory changes surrounding non-financial information, and on investors' expectations of corporate non-financial communication. These results also have empirical utility, given the many current debates on the latest regulatory developments, particularly on the applicability of CSRD. Although we do not provide a direct answer to this question, we are able to highlight the concerns felt by investors regarding the adoption of this directive.

Suggested Citation

  • Louis Fargier, 2024. "Étude de la réaction du marché face à l'adoption d'une directive renforçant les obligations de divulgation des performances extrafinancières," Post-Print hal-04890383, HAL.
    • Handle: RePEc:hal:journl:hal-04890383
    Note: View the original document on HAL open archive server: https://hal.science/hal-04890383v1
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    References listed on IDEAS

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    1. Neu, D. & Warsame, H. & Pedwell, K., 1998. "Managing public impressions: environmental disclosures in annual reports," Accounting, Organizations and Society, Elsevier, vol. 23(3), pages 265-282, April.
    2. Gillan, Stuart L. & Koch, Andrew & Starks, Laura T., 2021. "Firms and social responsibility: A review of ESG and CSR research in corporate finance," Journal of Corporate Finance, Elsevier, vol. 66(C).
    3. Obeng, Victoria A. & Ahmed, Kamran & Miglani, Seema, 2020. "Integrated reporting and earnings quality: The moderating effect of agency costs," Pacific-Basin Finance Journal, Elsevier, vol. 60(C).
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