Integrating Sustainability Into Capital Markets: Bloomberg LP And ESG's Quantitative Legitimacy

The rise in prominence of environmental, social, and governance data has been driven in large part by a growing interest among investors who seek to gain an edge through the incorporation of such data in their investment decision‐making. There are, however, several significant obstacles to the integration of ESG data into mainstream investing analysis. Perhaps most important, while finance today is a fundamentally quantitative discipline, ESG is often qualitative. Moreover, the ESG data that is available is incomplete and inconsistent, due largely to a reliance on voluntary reporting by individual companies. In short, ESG has not yet earned its quantitative legitimacy in the eyes of the investor community. Nevertheless, recent work in the area of stranded asset values has provided Bloomberg LP, a leading provider of financial data and analytics, an opportunity to “bridge theory and practice” by translating the stranded assets framework into a first‐cut valuation tool designed for mainstream financial analysts. The tool offers a quantitative introduction to an ESG issue that the authors believe will eventually become an important focus of many investment decision‐makers' analysis. While the tool continues to evolve in analytical sophistication, the authors “preview” it here in its early form as one step towards Bloomberg's broader vision of “sustainable finance,” and the company's role in supporting the quantitative maturation of ESG through the twin engines of standardization and disclosure.     

Timing of apology after service failure: the moderating role of future interaction expectation on customer satisfaction

Marketing Letters - When there is a service failure, it is often believed that employees should immediately apologize to customers before hearing their complaints. However, we argue that in certain...     

The impact of market actions on firm reputation

Drawing on signaling theory, we hypothesize that a firm's reputation is shaped by its own market actions and the actions of its industry rivals. We view market actions as signals that convey information about the underlying competencies of firms and influence stakeholder evaluations of them. We find that the total number of a firm's market actions, the complexity of its action repertoire, the time lag in rivals' responses to its actions, and the similarity of its repertoire with those of its rivals positively affect its reputation. These results suggest that a firm's reputation is influenced both by its own actions and by its rivals' actions. Copyright © 2006 John Wiley & Sons, Ltd.     

CHILD POVERTY IN CANADA

The evolution of measured poverty may reflect socio-economic developments, particular measurement choices or the effect (or lack of effect) of policy initiatives. We report a "case study" of child poverty in Canada between 1986 and 2000, a period when the elimination of child poverty was a stated policy goal, but reported child poverty rates did not change significantly. We find that the apparent persistence of child poverty in Canada is remarkably robust to measurement choices, and cannot easily be explained by socioeconomic developments.     

For Leaders to be Transformational,They Must Think Imaginatively

In the current article, it is argued that individual differences in imaginative thinking may predict transformational leadership. Transformational leaders create a vision for the future, which they must imagine. Moreover, being able to imagine differences in thinking and behavior may aid in the development of more transformation leaders via guided reflection on their leadership practices. Ultimately, assessment of individual differences in imaginative thinking may be useful in recruitment of leaders.     

Use of a validated algorithm to estimate the annual cost of effective biologic treatment for rheumatoid arthritis

Objectives:

To estimate biologic cost per effectively treated patient with rheumatoid arthritis (RA) using a claims-based algorithm for effectiveness.

Methods:

Patients with RA aged 18–63 years in the IMS PharMetrics Plus database were categorized as effectively treated if they met all six criteria: (1) a medication possession ratio ≥80% (subcutaneous) or at least as many infusions as specified in US labeling (intravenous); (2) no biologic dose increase; (3) no biologic switch; (4) no new non-biologic disease-modifying anti-rheumatic drug; (5) no new or increased oral glucocorticoid; and (6) ≤1 glucocorticoid injection. Biologic cost per effectively treated patient was defined as total cost of the index biologic (drug plus intravenous administration) divided by the number of patients categorized by the algorithm as effectively treated. Similar methods were used for the index biologic in the second year and for a second biologic after a switch.

Results:

Rates that the index biologic was categorized as effective in the first year were 31.0% etanercept (2243/7247), 28.6% adalimumab (1426/4991), 28.6% abatacept (332/1160), 27.2% golimumab (71/261), and 20.2% infliximab (474/2352). Mean biologic cost per effectively treated patient, per the algorithm, was $50,141 etanercept, $53,386 golimumab, $56,942 adalimumab, $73,516 abatacept, and $114,089 infliximab. Biologic cost per effectively treated patient, using this algorithm, was lower for patients who continued the index biologic in the second year and higher after switching.

Conclusions:

When a claims-based algorithm was applied to a large commercial claims database, etanercept was categorized as the most effective and had the lowest estimated 1-year biologic cost per effectively treated patient. This proxy for effectiveness from claims databases was validated against a clinical effectiveness scale, but analyses of the second year or the year after a biologic switch were not included in the validation. Costs of other medications were not included in cost calculations.