Is Materiality Key to Profit on Sustainability? An empirical analysis of material sustainability and its effect on stock performance on Oslo Stock Exchange

In this thesis, we examine whether the companies’ focus and prioritization of material sustainability issues have value implications for companies listed in Norway. Material sustainability issues are those issues that are likely to influence the decision making of stakeholders (Jørgensen, Mjøs, & Pedersen, 2022). We classify an investment as material or immaterial by cross-checking MSCI’s key sustainability issues with SASB’s industry-specific material issues. We construct portfolios based on i) companies with high (low) investments in material and immaterial sustainability, and ii) based on relative sustainability performance. The excess returns are then measured against the Fama French four-factor model. The methodology is inspired by Khan, Serafeim & Yoon (2016). When considering sustainability investments, we find that no significant abnormal returns are present, regardless of the investments being material or immaterial. When examining the effect of relative sustainability performance on stock performance, our results indicate that the relative material sustainability performance does not create value for shareholders. However, the results implies that a strong performance on immaterial sustainability is associated with a negative annualized abnormal return of 1.2% compared to the low performers. Furthermore, we argue that the five biggest sectors on Oslo Stock Exchange are affected differently by sustainability factors, because of varying stakeholder pressure and different material issues. The sector portfolios achieve a difference in annualized abnormal return ranging from -2.40% for the Extractives & Mineral Processing sector to 3.60% for the Financial sector. To conclude, we argue that materiality matters in the sense that continuous investments in immateriality, and thus becoming a sector-leader, is value-destroying. The results suggests that the non- financial accounting standards used in Norway are successful in separating material and immaterial issues for investments purposes, and thereby highlight the importance of knowing which sustainability issues to prioritize in the mission of aligning sustainability and profitability.nhhma

Sustainable investing practices of asset managers operating in Finland

Abstract. Sustainability has become a trend in many industries and finance is no different. Sustainable investing does not have an official definition, but it often refers to the practice of integrating environmental, social, and governance (ESG) factors into investment decision-making. Throughout the years it has developed from simple religious practices into a comprehensive investing phenomenon. Recently, because of the rapid growth of the industry, the fear of greenwashing has become apparent. The past academic literature related to sustainable investing has primarily focused on financial performance and non-financial performance has been overlooked. Therefore, it is relevant to study these issues in more detail. The objective of this master’s thesis is to get a better understanding of the sustainable investing practices of asset managers operating in Finland. Specifically, the aim is to study how asset managers practice sustainable investing, how they communicate about it, and how they prevent greenwashing in their practices. To collect data for the study, a survey with 38 questions was sent to 31 asset managers, out of which 24 answered all the mandatory questions. The data acquired from the survey was descriptive and it was analyzed using both quantitative and qualitative methods, to get a more thorough analysis of the topic. Based on the survey, all the asset managers operating in Finland practice sustainable investing. They use various strategies, have different motivations, and believe that investing sustainably can lead to excess returns in the future. Asset managers use a variety of different ways to disclose information regarding their sustainable investing practices to their stakeholders. They are, for example, committed to certain initiatives and disclose sustainability-related information on their website. They see greenwashing as a problem in the investment industry and prevent it in their practices by promoting high transparency and integrity. There exist differences in the sustainable investment practices between asset managers with different amounts of assets under management. Asset managers with larger amounts of assets under management tend to have more resources, which is why they seem to have more advanced ways to practice sustainable investing and communicate about it than asset managers with less assets under management. This master’s thesis gives a notable addition to the current academic literature regarding sustainable investing. There do not exist many studies regarding this topic, which is why these results provide important information related to the sustainable investing practices of asset managers operating in Finland. This thesis is done as a commission by Scandinavian Financial Research Oy

Otterbein Towers Fall 2001

https://digitalcommons.otterbein.edu/towers/1250/thumbnail.jp

Volume 72, Number 10 (October 1954)

Liszt\u27s Treasures in Washington How to Write Good Tunes Dance Art Develops a Notation Fascinating Ensemble of Flute and Organ Story of MTNA Results Count! Is There an Italian Method? (interview with Fedora Barbieri) Present Aims and Objectives in Choral Music Ernest Bloch Sonata: A Descriptive Analysishttps://digitalcommons.gardner-webb.edu/etude/1101/thumbnail.jp

1951-1952 Louisiana Polytechnic Institute Catalog

The Louisiana Polytechnic Institute Catalog includes announcements and course descriptions for courses offered at Louisiana Polytechnic Institute for the academic year of 1951-1952.https://digitalcommons.latech.edu/university-catalogs/1057/thumbnail.jp

New Mexico State Record, 03-12-1920

https://digitalrepository.unm.edu/nm_state_record_news/1191/thumbnail.jp

Computer prediction of three-dimensional potential flow fields in which aircraft propellers operate: Computer program description and users manual

A method was developed for predicting the potential flow velocity field at the plane of a propeller operating under the influence of a wing-fuselage-cowl or nacelle combination. A computer program was written which predicts the three dimensional potential flow field. The contents of the program, its input data, and its output results are described

International House Scrapbook 1957-1958

This scrapbook contains information about the Jacksonville State Teachers College International House program, led by James H. Jones, a professor of French. The scrapbook contains photographs and correspondence, newspaper clippings, and more.https://digitalcommons.jsu.edu/intl_yrbk/1009/thumbnail.jp