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The use of evidence and economic analysis in policymaking is on the rise, and accounting standard setting and financial … regulation are no exception. This article discusses the promise of evidence-based policymaking in accounting and financial …
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We investigate whether ESG ratings predict future ESG news and the associated market reactions. We find that the consensus rating predicts future news, but its predictive ability diminishes for firms with large disagreement between raters. Relation between news and market reaction is moderated...
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