Hoa Briscoe-Tran, PhD student at Ohio State University, discusses a new method for getting the inside view on corporate ESG practices, based on an analysis of 10 million employee reviews on Glassdoor.com, a career intelligence site.

The results show that the inside view is uncorrelated with ESG ratings and that corporates tend not to “walk-the-talk” when it comes to their ESG policies. Moreover, Briscoe-Tran shows how the inside view can be used to predict a firm’s future misconduct, accounting issues, shareholder activism and downside risk, as well as its valuation, sales growth and its likelihood of being in Fortune’s 100 Best Companies.

Finally, Briscoe-Tran investigates how informative the inside view is in predicting a firm’s future ESG performance indicators, and finds that the inside view performs better than ESG ratings for the “S” and “G”, though not for the “E”.

 

 

Read the full paper on SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3987291

Hoa Briscoe-Tran’s personal website: www.briscoe-tran.com