Non-Financial Disclosure Policies and Their Influence on the Investor Behavior in NYSE-Listed Financial Firms
DOI:
https://doi.org/10.53819/81018102t4176Abstract
This comprehensive research study delved into the impact of Non-Financial Disclosure (NFD) policies on investor behavior in firms listed on the New York Stock Exchange (NYSE). The premise of the research was grounded on the hypothesis that exhaustive NFDs, covering a broad spectrum of environmental, social, and governance (ESG) parameters, exert a significant influence on the decision-making process of investors. The research design was longitudinal, examining the unfolding of NFD practices of firms listed on the NYSE over an eight-year period from 2015 to 2023. The methodology hinged on a robust econometric analysis, where a comprehensive dataset compiled from numerous sources such as annual reports, sustainability disclosures, and patterns of investor behavior, was subjected to rigorous statistical scrutiny. The findings of the study provided compelling evidence of a strong positive correlation between the robustness of NFD practices and investor confidence. Particularly, disclosures that pertained to social and environmental impact seemed to trigger a considerable shift in investment patterns, highlighting the growing role of ESG factors in contemporary financial markets. What stood out in the research results was the fact that firms that demonstrated a strong commitment to NFD policies managed to attract a more diversified and stable investor base. This observation signals a clear shift in the financial landscape towards sustainable investment, driven by a growing consciousness among investors about the importance of ESG factors in ensuring long-term investment value. The implications of this study for the wider financial community are significant. Firstly, it adds substantial empirical weight to the growing body of literature underlining the importance of NFDs in contemporary financial markets. Secondly, it underscores the crucial role that regulatory bodies can play in fostering a more transparent and accountable financial ecosystem. It suggests the need for these bodies to enforce comprehensive NFD policies to ensure that investors have access to the information they need to make informed and sustainable investment decisions.
Keywords: Non-Financial Disclosure Policies, Investor Behavior, NYSE-Listed Financial Firms, Environmental, Social, and Governance (ESG) Factors, Sustainable Investment Practices
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