 ESG in the financial industry: What matters for rating analysts?Marco Mandas, Oumaima Lahmar, Luca Piras and Riccardo De Lisa Research in International Business and Finance, 2023, vol. 66, issue C Abstract: This paper examines ESG rating analysts’ views from Sustainalytics in order to highlight the main ESG features discussed across 11 sectors. We perform a topic modeling and a sentiment analysis to identify the content of analysts’ opinions on the companies’ ESG performance and to uncover the embedded sentiment associated with each ESG feature. The results of the topic modeling consist of 13 topics with a sector driven distribution. The analysis suggests that the best ESG performing financial institutions show to be actively committed to the code of best practice in governance and disclosure transparency. Whereas penalized financial entities seem to manifest less attention to ethical conduct and mis-selling. Furthermore, data privacy and security attract analysts’ attention and should be closely monitored by financial entities. Finally, it is important to actively disclose ESG activities as the more information is available the better ESG commitment is reflected in analysts’ views. Keywords: ESG; ESG rating analyst; Banking; Topic modelling; Textual analysis; Sentiment analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:66:y:2023:i:c:s027553192300171x DOI: 10.1016/j.ribaf.2023.102045 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.