On 13 March 2025 we hosted another Inspirational Lecture webinar titled ‘Unleash the Power of Words in Finance’. The session was conducted by Prof. dr. James Thewissen from BMI Institute
Description:
Unleash the Power of Words in Finance
This lecture tackles the important topic of corporate sustainability reporting and sits at the crossroads of sustainable finance and artificial intelligence. We will discuss how the content of ESG reports shapes investor perceptions and reduces information asymmetry. Based on the sentLDA method, a sentence-based topic modeling algorithm, we will analyze 1,667 ESG reports between 2007 and 2020 to uncover 30 key themes that drive investors’ interest.
• Our findings show distinct patterns in ESG disclosures, evolving managerial priorities, and investors’ selective attention to environmental topics over social and governance issues.
• We also identify a concave relationship between thematic diversity and informativeness, which suggests that more is not always better.
• Ultimately, this study highlights ESG reports as a powerful signaling tool that shapes investor behavior and market efficiency.
