Exploring the environmental information in sell-side analysts' research reports
by Henrik Nilsson
Progress in Industrial Ecology, An International Journal (PIE), Vol. 5, No. 3, 2008

Abstract: This study shows how environmental information is used by financial analysts when valuing companies. Unlike the previous studies on analysts' perceptions, we use content analysis to examine the actual use of environmental information in valuations. Research reports from large investment banks in the USA and Europe are collected. The sample consists of reports from two industries, oil and chemicals, where the operations have a considerable impact on the environment. The results show that analysts do use environmental information in 35% of the valuations. Most of the information utilised is for environmental expenditures and risk assessment. For instance, the information about environmental provisions and emissions is of relative importance. We also find that analysts use environmental information not only for the evaluations of risk, but also for the assessment of the future upside potential when valuing chemical companies. They make use of this information to motivate the relative valuations.

Online publication date: Sun, 29-Jun-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the Progress in Industrial Ecology, An International Journal (PIE):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com