Leading or lagging indicators of risk? The informational content of extra-financial performance scores

  title={Leading or lagging indicators of risk? The informational content of extra-financial performance scores},
  author={Amos Sodjahin and Claudia Champagne and Frank Coggins and Roland Gillet},
  journal={Journal of Asset Management},
This study investigates the informational content of extra-financial agency scoring by examining the relationship between firm beta and extra-financial performance score upgrades and downgrades. Specifically, we study the variations in the extra-financial score of 266 Canadian corporations between 2007 and 2012 with a conditional model. We find no evidence that changes in firm beta precede changes in extra-financial scores. Rather, our results suggest that a firm’s systematic risk increases… 
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