Ankita Singh "Echoes of sustainability: Decrypting ESG discourse in quarterly earnings call"

The impact of voluntary sustainability disclosures on firm value remains an underexplored area, particularly within earnings calls, a crucial communication channel between management and investors. This study examines how the sentiment of environmental, social, and governance (ESG) discussions during earnings calls influences firm value, with a specific focus on the counterintuitive impact of positive and negative ESG disclosures. Utilizing natural language processing (NLP) techniques, we extract and analyze sentiment from ESG-related discussions to assess their influence on financial analyst recommendations and market responses. This research highlights how management’s ESG sentiments in earnings calls influence firm value by conveying transparency, risk awareness, and proactive strategic planning to investors. This study provides valuable insights for financial analysts, investors, and corporate decision-makers, contributing to a nuanced understanding of ESG communication and its financial implications.

Ankita Singh is a PhD candidate at KLU, working in the field of Behavioral finance and Accounting. Her research examines the intersections of management, behavioral finance, accounting, and sustainability, with a particular focus on the influence of managerial sentiment on financial outcomes.