Beschreibung:
We investigate environmental, social, and governance (ESG) and firm value effects of more than 7,000 shareholder proposals submitted between 2006–2020. Using propensity score matching and a difference-in-differences setting, the results indicate that firms that receive an ESG- or carbon-related proposal have higher ESG Scores and lower carbon emission intensities than non-target firms in subsequent years. These effects are particularly pronounced for proposals sponsored by conventional investors that have no explicit sustainability agenda. We do not observe an influence on firms’ absolute carbon emissions. These observations suggest that shareholder proposals have a limited effect on firms’ carbon performance. With regards to financial performance, we find positive, albeit small, abnormal market reactions when information on ESG- or carbon-related proposals becomes available. This outcome may explain firms’ tendencies to implement the demands of the proposal