Found 31 article(s) for author 'George Serafeim'

Corporate Sustainability: First Evidence on Materiality

Corporate Sustainability: First Evidence on Materiality. Mozaffar Khan, George Serafeim, March 24, 2015, Paper. “An increasing number of companies make sustainability investments, and an increasing number of investors integrate sustainability performance data in their capital allocation decisions. To date however, the prior academic literature has not distinguished between investments in material versus immaterial sustainability issues. We develop a novel dataset by hand-mapping data on sustainability investments classified as material for each industry into firm-specific performance data on a variety of sustainability investments…” Link

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If Greece Embraces Uncertainty, Innovation Will Follow

If Greece Embraces Uncertainty, Innovation Will Follow. George Serafeim, March 13, 2015, Opinion. “No matter what happens with the Greek bailout, all parties agree that the Greek economy will have to become more competitive. Many politicians and commentators mention two critical factors in accomplishing this: increasing innovative capacity and reducing bureaucracy. Both are important, but they are far more difficult to achieve than many understand because they are, to a significant extent, influenced by culture. ‘Culture’ can sound like a catchall, a convenient way to place the blame outside the realm of policy, but I am talking about one specific dimension of culture: avoiding uncertainty…” Link

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Speaking of the short-term: disclosure horizon and managerial myopia

Speaking of the short-term: disclosure horizon and managerial myopia. George Serafeim, March 12, 2015, Paper. “We study conference calls as a voluntary disclosure channel and create a proxy for the time horizon that senior executives emphasize in their communications. We find that our measure of disclosure time horizon is associated with capital market pressures and executives’ short-term monetary incentives. Consistent with the language emphasized during conference calls partially capturing short-termism, we show that our proxy is associated with earnings and...” Link

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Divestment Alone Won’t Beat Climate Change

Divestment Alone Won’t Beat Climate Change, George Serafeim, September 4, 2014, Opinion, The fossil fuel divestment movement – an increasingly popular approach with environmentalists — primarily tries to convince pension funds, university endowments, and other asset holders that their investments in oil and coal are unethical because of impact of fossil fuel emissions on the world’s climate. Proponents argue that divestment is a symbolic statement that can discourage fossil fuel consumption by stigmatizing the industry. Despite its recent successes, we believe this approach is limited. Both of us have done work on sustainable development and are keen to see a transition away from fossil fuels in order to limit climate change. But divestment alone is not the answer. Link

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How to Kill Quarterly Earnings Guidance

How to Kill Quarterly Earnings Guidance. George Serafeim, June 18, 2014, Opinion. “Quarterly earnings guidance has outlived its usefulness. There are instances when it might be perfectly legitimate and value enhancing to issue earnings guidance in an effort to inform the market about material disruptions, shifts in the business model etc., but on the whole, the practice is not a helpful way of building a sustainable business that is geared to succeed in the long-term. By now it is well understood that the short-term focus by shareholders on quarterly earnings can impair firms’ ability to create long-term value…” Link Verified October 11, 2014

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Reporting for Duty

Reporting for Duty. George Serafeim, June 2014, Opinion, starting on page 22. “Our society is challenged. Environmental challenges related to pollution,climate change, water shortages and the depletion of natural resources put food supplies at risk, as well as the amount of clean water and clean air in the world. Social challenges, such as rising levels of unemployment – especially among young people – rising social inequality and decreasing social mobility are creating unstable social and political environments…” Link

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The Role of the Corporation in Society: An Alternative View and Opportunities for Future Research

The Role of the Corporation in Society: An Alternative View and Opportunities for Future Research. George Serafeim, May 5, 2014, Paper. “A long-standing ideology in business education has been that a corporation is run for the sole interest of its shareholders. I present an alternative view where increasing concentration of economic activity and power in the world’s largest corporations, the Global 1000, has opened the way for managers to consider the interests of a broader set of stakeholders rather than only shareholders. Having documented that this alternative view better fits actual corporate conduct…” Link Verified October 11, 2014

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Corporate and Integrated Reporting: A Functional Perspective

Corporate and Integrated Reporting: A Functional Perspective. Robert Eccles, George Serafeim, May 5, 2014, Paper. “In this paper, we present the two primary functions of corporate reporting (information and transformation) and why currently isolated financial and sustainability reporting are not likely to perform effectively those functions. We describe the concept of integrated reporting and why integrated reporting could be a superior mechanism to perform these functions. Moreover, we discuss, through a series of case studies, what constitutes an effective integrated report…” Link Verified October 11. 2014

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Corporate Reporting in the Big Data Era

Corporate Reporting in the Big Data Era. George Serafeim, April 29, 2014, Opinion. “Advancements in information technology can improve corporate communication with shareholders, but not through incessant data dumps. Instead, companies will more likely be poised for continued success if they use digital platforms for long-term oriented engagement and communication in the context of our changing global economy. This is characterized by increased demand for corporate transparency, heightened global competition leading to customer mobility, and resource scarcity that raises the importance of innovation in…” Link Verified October 11, 2014

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Integrated Reporting and Investor Clientele

Integrated Reporting and Investor Clientele. George Serafeim, April 4, 2014, Paper. “In this paper, I examine the relation between Integrated Reporting (IR) and the composition of a firm’s investor base. I hypothesize and find that firms that practice IR have a more long-term oriented investor base with more dedicated and fewer transient investors. This result is more pronounced for firms with high growth opportunities, not controlled by a family, operating in “sin” industries, and exhibiting more stable IR practice over time…” Link Verified October 11, 2014

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