Does ESG information draw more visual attention than financial information?

Abstract

Recent disclosure mandates focus on reporting information about nonfinancial dimensions of performance regarding corporate environmental social and governance (ESG) activities and impacts. Unlike financial information, few programs teach students how to read and interpret ESG disclosures. Further, ESG information tends to be nonfinancial, non-standardized, and lacks a consistent measurement basis (e.g. tons of emissions or kilowatt hours of energy). This makes it difficult for decision-makers to aggregate and process ESG information. In a laboratory experiment employing eye-tracking technology, we find that participants expend more effort processing ESG information. The additional processing..