Three Common Misconceptions About Markets (or Why Earnings Smoothing, Guidance, and Concern About Meeting Consensus Estimates are Likely to be Counterproductive)

• Published date: 01 September 2013
• Date: 01 September 2013
• DOI: http://doi.org/10.1111/jacf.12025

VOLUME 25 | NUMBER 3 | SUMMER 2013

In This Issue: Investors and Sustainability

A Tale of Two Stories:

Sustainability and the Quarterly Earnings Call

8Robert G. Eccles and George Serafeim,

Harvard Business School

ESG Investing in Graham and Doddsville 20 by Dan Hanson, Jarislowsky Fraser USA

Three Common Misconceptions About Markets

(or Why Earnings Smoothing, Guidance, and Concern About Meeting

Consensus Estimates Are Likely to be Counterproductive)

32 Tim Koller, Bin Jiang, and Rishi Raj, McKinsey & Company

How to Create Value Without Earnings: The Case of Amazon 39 Josh Tarasoff, Greenlea Lane Capital, and John McCormack

Responsible Investors: Who They Are, What They Want 44 Steve Lydenberg, Domini Social Investments LLC

Corporate Disclosure of Material Information:

The Evolution—and the Need to Evolve Again

50 Jean Rogers, Sustainability Accounting Standards Board,

and Robert Herz, Financial Accounting Standards Board

New Venture: A New Model for Clean Energy Innovation 56 Tiffany Clay, TPG

Integrating Sustainability Into Capital Markets:

Bloomberg LP And ESG’s Quantitative Legitimacy

62 Andrew Park and Curtis Ravenel, Bloomberg LP

Financial Institutions and Non-Governmental Organizations:

An Advocacy Partnership for Sustainable Capital Markets?

68 Steve Waygood, Aviva Investors

Preserving Value through Adaptation to Climate Change 76 Jason West and Robert Bianchi, Grifth University

Loyalty-Shares: Rewarding Long-term Investors 86 Patrick Bolton, Columbia University, and Frédéric Samama,

SWF Research Initiative and Amundi