Sustainability indices: do investors actually care?
In the face of social, environmental, and financial disruptions, more attention is being paid to corporate social responsibility (CSR) policies, and sustainability benchmarks have multiplied. But does a firm's listing in a CSR index really matter to investors? HEC researchers investigated how important inclusion in the leading global CSR benchmark, the Dow Jones Sustainability Index (DJSI) World, is to investors.
CEO pay and philanthropy: When good intentions attract bad attention
In giving large compensation to CEOs, some companies receive criticism in the media, while others escape attention. Recent research shows that the companies under the most scrutiny are often those who engage in activities that media and other stakeholders perceive as contradictory, such as CEO overcompensation and corporate philanthropy.
How storytelling can increase support for whistleblowers
Whistleblowers are often condemned by society, but they can be key to uncovering scandal. Hervé Stolowy, Luc Paugam and co-researchers Yves Gendron and Jodie Moll uncover how whistleblowers can tell their stories to better promote the positive aspects of their role for society and increase their legitimacy.
Thinking through cannabis markets
The relationship between cannabis and society is a long and deeply contested one. Throughout history, cannabis has been associated with everything from health, leisure, and pop culture to criminal and immoral behavior. But beyond the simple debate about whether cannabis is good or bad, the study of cannabis markets needs interdisciplinarity, to know what is required to construct an effective and fair contested market.
Colorado: when cannabis has created its own market
One is reminded of just how much has changed since the decades-long "War on Drugs" when walking past the brightly colored marijuana dispensaries in downtown Denver, each filled with a dizzying array of products—not just the flower or bud that one typically expects, but oils, resins, infused drinks and candies, as well as patches and creams. This is only made possible because residents in the state of Colorado, as in other states, have voted in favor of legalizing the cultivation and sale of cannabis for medical and recreational uses in 2000 and 2012 respectively. These ballot measures have set off what is often described as Colorado’s “green rush”: a wave of entrepreneurial activity to transform and to bring to market those practices of cannabis cultivation, sale, and consumption that have for decades operated in the shadows of illegality. Tommaso Palermo, Daniel Martinez and Dane Pflueger have been studying the emergence of this new market.
Understanding Financial Regulation: A Tool For Success
Since the 2008 financial crisis, understanding financial regulation has never been more important. This month’s newsletter assesses regulation’s impact on corporations and markets, showcasing work carried out by HEC Paris’ faculty on various aspects of the fast-moving regulatory landscape.
Annual reports: Why it's helpful to publish them in English
Hervé Stolowy and his co-authors look at the impact for companies based in non-English speaking countries of the publication of their annual reports in English. The researchers find that there are positive consequences for businesses that adopt this approach: increased foreign ownership and following by financial analysts, together with a decrease in information asymmetry.