Essays on Investors Perspective and Investment Value Drivers Including Environment, Social and Governance Issues Assignment

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The paper 'Investors’ Perspective and Investment Value Drivers Including Environment, Social and Governance Issues" is a great example of a finance and accounting assignment. A crucial aspect within the performance of the investments is the capability of the investors to identify the drivers of anticipated return and risks of the investments (Hayat and Orsagh 2015, p. 1). Portfolio managers and financial analysts are anticipated to have the knowledge of financial factors which often drive up the investment value. However, factors which are complex to determine in the monetary basis and which do compose part of usual financial factors also impact return and risk of the investments also affect the risk and return of investment.

These factors which affect investments are known as environmental, social, and governance issues. Psaros (2009, p. 45) contended that the ESG factor has normally been of major focus by the media in recent years particularly in the case where investors suffer significant losses on the company’ s listed equities. In the process, investors have been fast attributing such losses to poor management of ESG issues and forgetting they also have a duty to encourage higher standards of ESG performance.

Hayat and Orsagh (2015, p. 1) posited that some of the companies which have collapsed duty poor of management of ESG factors and proved to be costly to the investors include Enron, One. Tel, HIH Insurance, Parmalat and WorldCom. Therefore, this essay will analyze why the integrated issues of environmental, social and governance should be added value to investor’ s decision-making process. In addition, this essay will discuss why investors should encourage higher standards of ESG performance in the companies in which they are invested, and why the investors have a responsibility to support the integrity and stability of the financial system. Why the integrated issues of environmental, social and governance should be added value to investor’ s decision-making process According to Hayat and Orsagh (2015, p. 3) Environmental, social and governance are described as the three key factors used in gauging ethical and sustainability effect of the investment within the business or a company.

When these factors are practised positively the process is referred to as responsible investing. Brian, Singhal and Subramanian (2010, p. 433) stated that over the years, research has focused majorly on how managers should increase shareholders’ return and forgetting the role of investors in responsible investing.

Therefore, in the recent past, studies have been done of the role of investors and why the integrated issues of environmental, social and governance should be added value to investor’ s decision-making process.


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