Material Sustainability Information and Stock Price Informativeness

New research by Jody Grewal, Clarissa Hauptmann, and George Serafeim finds that firms that disclose information about their environmental, social, and governance performance enjoy advantages in the market if disclosure follows standards developed by the Sustainability Accounting Standards Board (SASB). Stock prices of these firms reflect more firm-specific information, compared to stock prices of firms that do not follow SASB guidelines.