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Hassel, Lars G
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Publications (10 of 43) Show all publications
Semenova, N. & Hassel, L. G. (2019). Private engagement by nordic institutional investors on environmental, social, and governance risks in global companies. Corporate governance: An International Review, 27(2), 144-161
Open this publication in new window or tab >>Private engagement by nordic institutional investors on environmental, social, and governance risks in global companies
2019 (English)In: Corporate governance: An International Review, ISSN 0964-8410, E-ISSN 1467-8683, Vol. 27, no 2, p. 144-161Article in journal (Refereed) Published
Abstract [en]

Research question/issue

The paper examines private engagements related to environmental, social, and governance (ESG) incidents as a corporate governance mechanism used by Nordic institutional investors to influence MSCI World companies. The questions addressed are how an agent‐led collaborative engagement is carried out, what are the characteristics of the target companies selected, and if the successful engagements can improve ESG performance compared with pre‐engagement and incomplete cases.

Research findings/insights

A unique data set of 355 private engagements of a professional agent on behalf of its Nordic clients is studied on environment, human and labor rights, and corruption risks between 2005 and 2013. An engagement process of the agent is described with focus on sequence and duration of actions of private engagement dialogues before filing a resolution. Successful private engagements, when target companies adopt the proposed ESG changes, are 27.6%. The incident‐driven private engagements target companies rated with high market values and ESG performance. ESG performance and transparency increase for succeeded engagements in the postengagement period and relative to incomplete engagements.

Theoretical/academic implications

The paper provides empirical support for a social movement‐based influence of private engagements on target companies and adds to the broad‐scale empirical literature on investor activism. In the Nordic governance setting, an agent‐coordinated private engagement is seen as a social movement that supports targeting companies with a potential for change.

Practical/policy implications

Insights are offered to actors in the value chain in financial markets by demonstrating that successful ESG engagements have the potential to change portfolio company ESG practices.

Place, publisher, year, edition, pages
John Wiley & Sons, 2019
Keywords
corporate governance, active ownership, environmental, social, and governance (ESG) risks, institutional investors, private engagement
National Category
Economics and Business
Research subject
Business Studies
Identifiers
urn:nbn:se:umu:diva-161676 (URN)10.1111/corg.12267 (DOI)
Available from: 2019-07-23 Created: 2019-07-23 Last updated: 2019-07-24Bibliographically approved
Semenova, N. & Hassel, L. G. (2019). The Performance of Investor Engagement Dialogues to Manage Sustainability Risks. The Nordic Journal of Business, 68(2), 5-22
Open this publication in new window or tab >>The Performance of Investor Engagement Dialogues to Manage Sustainability Risks
2019 (English)In: The Nordic Journal of Business, ISSN 2342-9003, E-ISSN 2342-9011, Vol. 68, no 2, p. 5-22Article in journal (Refereed) Published
Abstract [en]

This empirical study investigates the performance of a collaborative dialogue process where active Nordic investors interact with target companies behind the scenes to manage sustainability risks. The question addressed is what are the financial and nonfinancial characteristics of targets that provide opportunities for a successful dialogue process. The social movement theory of interest-driven collective action and the dialogic theory of effective communication are used as the conceptual framework with which to examine a proprietary dataset covering 326 dialogues with MSCI World companies. The results indicate that the performance of an agent-led collaborative dialogue process depends on the target company’s characteristics. The responsiveness of targets to the direct requests of the agent for comments, the willingness of targets to make an effort to implement changes raised by the agent throughout ongoing negotiations, and the success of the dialogue process are systematically related to the sustainability and financial attributes of targets. 

Keywords
Dialogue, sustainability, risk, performance, process, management, activism
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:umu:diva-163234 (URN)
Available from: 2019-09-11 Created: 2019-09-11 Last updated: 2019-10-08Bibliographically approved
Hassel, L. G. & Semenova, N. (2018). Engagement dialogue as a Nordic sustainable and responsible investment (SRI) strategy. In: Susanne Arvidsson (Ed.), Challenges in managing sustainable business: reporting, taxation, ethics and governance (pp. 179-204). Cham: Palgrave Macmillan
Open this publication in new window or tab >>Engagement dialogue as a Nordic sustainable and responsible investment (SRI) strategy
2018 (English)In: Challenges in managing sustainable business: reporting, taxation, ethics and governance / [ed] Susanne Arvidsson, Cham: Palgrave Macmillan, 2018, p. 179-204Chapter in book (Refereed)
Abstract [en]

This chapter explores engagement dialogue as a sustainable and responsible investment (SRI) strategy from a Nordic investor perspective. The Nordic model of engagement dialogue is grounded in the Nordic model of corporate governance and stakeholder capitalism. Based on a proprietary database from a professional SRI agent, this chapter conducts an in-depth analysis of engagement dialogue between Nordic institutional investors and MSCI World companies regarding environmental, social, and corruption risks. The main characteristics of the Nordic model of engagement dialogue are an incident-based approach, norm-based compliance, a small number of engagement cases, and long-term emphasis on risk reduction as opposed to short-term financial gains. The chapter notes that successful forms of engagement dialogue target global companies with higher levels of pre-engagement environmental, social and governance (ESG) performance, ESG transparency, and operating performance than a matched sample. Their performance remains superior to the matched sample in the post-engagement period. The chapter consequently extends previous literature on SRI strategies in the Anglo-Saxon model of activism based on shareholder resolutions, whereby companies are targeted owing to corporate governance risks and low financial performance.

Place, publisher, year, edition, pages
Cham: Palgrave Macmillan, 2018
Keywords
Sustainable and responsible investments (SRI), Investor activism, Private engagements, Environmental, social and governance (ESG) risks, Transparency, Performance
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:umu:diva-161678 (URN)10.1007/978-3-319-93266-8_8 (DOI)9783319932651 (ISBN)9783319932668 (ISBN)
Available from: 2019-07-23 Created: 2019-07-23 Last updated: 2019-08-28Bibliographically approved
Mutiganda, J. C., Grossi, G. & Hassel, L. G. (2017). Modernising management Processes in elderly care. Statsvetenskaplig Tidskrift, 119(1), 1-19
Open this publication in new window or tab >>Modernising management Processes in elderly care
2017 (English)In: Statsvetenskaplig Tidskrift, ISSN 0039-0747, Vol. 119, no 1, p. 1-19Article in journal (Refereed) Published
National Category
Health Care Service and Management, Health Policy and Services and Health Economy Economics and Business
Research subject
Business Studies
Identifiers
urn:nbn:se:umu:diva-129477 (URN)
Available from: 2016-12-30 Created: 2016-12-30 Last updated: 2018-06-09Bibliographically approved
Mutiganda, J. C. & Hassel, L. G. (2016). Budgetary Mechanisms and Performance Accountability during Financial Restrictions: a Resource Dependency Approach in a Public Sector Organisation. In: 20th International Research Society on Public Management Conference 2016 Hong Kong: . Paper presented at IRSPM 20th Annual Conference, Hong Kong, April 13-15, 2016. Hong Kong
Open this publication in new window or tab >>Budgetary Mechanisms and Performance Accountability during Financial Restrictions: a Resource Dependency Approach in a Public Sector Organisation
2016 (English)In: 20th International Research Society on Public Management Conference 2016 Hong Kong, Hong Kong, 2016Conference paper, Published paper (Refereed)
Place, publisher, year, edition, pages
Hong Kong: , 2016
National Category
Social Sciences
Research subject
Business Studies
Identifiers
urn:nbn:se:umu:diva-129479 (URN)
Conference
IRSPM 20th Annual Conference, Hong Kong, April 13-15, 2016
Available from: 2016-12-30 Created: 2016-12-30 Last updated: 2019-06-25Bibliographically approved
Semenova, N. & Hassel, L. G. (2016). The moderating effects of environmental risk of the industry on the relationship between corporate environmental and financial performance. Journal of Applied Accounting Research, 17(1), 97-114
Open this publication in new window or tab >>The moderating effects of environmental risk of the industry on the relationship between corporate environmental and financial performance
2016 (English)In: Journal of Applied Accounting Research, ISSN 0967-5426, E-ISSN 1758-8855, Vol. 17, no 1, p. 97-114Article in journal (Refereed) Published
Abstract [en]

Purpose–Industries differ in their environmental impacts, such as emissions, water and energy use, fuel consumption and hazardous wastes, which will have implications for how environmental performance translates to operating performance and market value at company level. By incorporating industry-specific differences of environmental impacts, this paper includes industry-level environmental risk as a moderating factor on the relationship between two indicators of corporate environmental performance (CEP) (management and policy) and corporate financial performance (profitability and market value). The paper aims to discuss these issues. Design/methodology/approach– Using panel data of US companies across all industries, the paper empirically tests a regression model, which includes an interaction effect representing both the form and strength of dependency of CEP on the environmental risk of the industry. The paper adopts the natural resource based theory to argue that financial returns are a decreasing function of CEP in high environmental impact industries, where environmental spending beyond compliance is costly and there is not much opportunity for consumer orientation. Findings– The results show that environmental management has different impacts on operating performance at high and low environmental risk of the industry (form of relationship) while environmental policy (reporting) has a stronger signal on market premium in industries with low rather than high environmental risk (strength of relationship). Differences in both form and strength of moderating effects are demonstrated. Research limitations/implications– Further research can introduce other industry-specific moderating factors, such as the disclosure maturity of the industry and the institutionalization of environmental disclosures across boarders in the industries, in order to explore the complexity of the relationship. Practical implications– The results of the paper are relevant to investors, company managers and a broad group of stakeholders when considering both industry- and company-level environmental risks. Originality/value– Previous studies have relied on controlling for industry membership. This paper uses an industry-specific environmental variable, environmental risk of the industry, to examine the form and strength of moderating effects.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2016
Keywords
Environmental impacts, Environmental policy, Market value, Moderating effects, Environmental management, Corporate environmental performance, Corporate financial performance, Environmental risk of the industry, Operating performance
National Category
Business Administration
Identifiers
urn:nbn:se:umu:diva-114681 (URN)10.1108/JAAR-09-2013-0071 (DOI)000376984000006 ()
Projects
SIRP
Funder
Mistra - The Swedish Foundation for Strategic Environmental Research
Note

USBESDA

Available from: 2016-01-25 Created: 2016-01-25 Last updated: 2018-06-07Bibliographically approved
Hassel, L. G., Kallunki, J.-P. & Nilsson, H. (2015). Do personal traits matter?: CEO's and directors' risk taking and environmental firm performance. In: Marc Fetscherin (Ed.), CEO branding: theory and practice (pp. 137-154). Routledge
Open this publication in new window or tab >>Do personal traits matter?: CEO's and directors' risk taking and environmental firm performance
2015 (English)In: CEO branding: theory and practice / [ed] Marc Fetscherin, Routledge, 2015, p. 137-154Chapter in book (Refereed)
Place, publisher, year, edition, pages
Routledge, 2015
National Category
Economics and Business
Identifiers
urn:nbn:se:umu:diva-105983 (URN)9781138013728 (ISBN)
Funder
Mistra - The Swedish Foundation for Strategic Environmental Research
Note

USBESDA  

Available from: 2015-07-02 Created: 2015-07-02 Last updated: 2018-06-07Bibliographically approved
Semenova, N. & Hassel, L. G. (2015). On the Validity of Environmental Performance Metrics. Journal of Business Ethics, 132(2), 249-258
Open this publication in new window or tab >>On the Validity of Environmental Performance Metrics
2015 (English)In: Journal of Business Ethics, ISSN 0167-4544, E-ISSN 1573-0697, Vol. 132, no 2, p. 249-258Article in journal (Refereed) Published
Abstract [en]

Different proprietary databases have been used extensively in research to assess the environmental performance and environmental risk of companies. This study explores the convergent validity of the environmental ratings of MSCI ESG STATS (formerly known as Kinder, Lydenberg, and Domini Research & Analytics; KLD), Thomson Reuters ASSET4 (ASSET4) and Global Engagement Services (GES). The study shows that the ratings have common dimensions, but on aggregate, they do not converge. On the environmental opportunity side, KLD environmental strengths, and ASSET4 and GES environmental performance metrics correlate highly and provide convergent scores for US companies from 2003–2011. On the environmental risk side, KLD environmental concerns converge with the GES environmental industry risk and company emissions from the ASSET4 database. Further analysis confirms that industry-related risks are drivers of company-specific environmental performance.

Place, publisher, year, edition, pages
Springer: , 2015
Keywords
Convergent validity, Corporate environmental responsibility, Environmental performance, Environmental risk, Measurement, Ratings
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:umu:diva-91937 (URN)10.1007/s10551-014-2323-4 (DOI)000367460100001 ()
Projects
SIRP
Funder
Mistra - The Swedish Foundation for Strategic Environmental Research
Note

USBESDA

Available from: 2014-08-18 Created: 2014-08-18 Last updated: 2018-06-07Bibliographically approved
Manzhynski, S., Figge, F. & Hassel, L. G. (2015). Sustainable value creation of nine countries of the Baltic region: value, changes and drivers. Journal of Cleaner Production, 108, 637-646
Open this publication in new window or tab >>Sustainable value creation of nine countries of the Baltic region: value, changes and drivers
2015 (English)In: Journal of Cleaner Production, ISSN 0959-6526, E-ISSN 1879-1786, Vol. 108, p. 637-646Article in journal (Refereed) Published
Abstract [en]

The Baltic region comprises countries of great diversity. They have in common that they all face the challenge to combine a sound economic development with the stewardship for their environmental, social and economic resources. Using the Sustainable Value approach we first analyse their overall sustainability performance. We then further develop the value drivers of Sustainable Value to enhance the explanatory power of our analysis. We find that there are significant differences between countries. We show both conceptually and using our examples that there is no unambiguous link between economic growth, environmental and social stewardship and the efficient use of resources.

Place, publisher, year, edition, pages
Oxford: Elsevier, 2015
Keywords
Baltic region, Sustainability, Sustainability assessment, Sustainable Value
National Category
Business Administration
Identifiers
urn:nbn:se:umu:diva-106527 (URN)10.1016/j.jclepro.2015.07.027 (DOI)000367762500058 ()2-s2.0-84946484940 (Scopus ID)
Funder
Mistra - The Swedish Foundation for Strategic Environmental Research
Note

USBESDA 

Available from: 2015-07-15 Created: 2015-07-15 Last updated: 2018-06-07Bibliographically approved
Cerin, P., Hassel, L. & Semenova, N. (2014). Energy performance and housing prices. Sustainable Development, 22(6), 404-419
Open this publication in new window or tab >>Energy performance and housing prices
2014 (English)In: Sustainable Development, ISSN 0968-0802, E-ISSN 1099-1719, Vol. 22, no 6, p. 404-419Article in journal (Refereed) Published
Abstract [en]

We investigate whether mandatory energy performance certificates of existing residential properties contribute to property price premiums after the implementation of the EU directive on the energy performance of buildings in the Swedish private housing market. Analysing mandatory energy performance certificates of the 2009–2010 private housing transactions, we find that energy performance is associated with transaction price in situations when it is conditional on a reference benchmark. We also document property price premiums for energy performance within housing segments built before 1960 and those with a lower transaction price per square metre. Our results suggest that the property market values energy performance, and we make recommendations on which housing segments need policy support to encourage energy improvements.

Place, publisher, year, edition, pages
Wiley-Blackwell, 2014
Keywords
energy performance, property value, residential property
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:umu:diva-86810 (URN)10.1002/sd.1566 (DOI)000346962400004 ()
Funder
Mistra - The Swedish Foundation for Strategic Environmental Research
Available from: 2014-03-11 Created: 2014-03-11 Last updated: 2018-06-08Bibliographically approved
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