After Hindenburg Research released their report highlighting AdaniGroup's accounting misdeeds, our ESG scores immediately signaled danger, yet the stock hovered for a day as investors entered a state of denial (see the quotes from representative social posts below).
In the chart below several Adani long-term ESG Controversy scores are plotted against the share price of Adani Total Gas (the biggest hit).
Our 365-day average ESG Controversies scores fell for all Adani companies, and Adani’s share prices started to plummet the day after. (Our 60-second scores were even faster...)
The CEO and CFO of Americanas SA resigned on Jan 11th due to Accounting inconsistencies at the company.
The stock posted the largest one-day decline of any of the 89 companies currently in the Ibovespa index in at least 20 years. AI-based ESG analytics picked up the drama as it happened.
Hiring new CEO Sergio Rial (formerly CEO of Santander Brazil) on August 20, 2022 was a good public relations move for Americanas.
The company’s ESG Management score (our real-time ESG metric, green line) jumped after the announcement in the chart below (stock price is blue bars).
Then on Jan 11th, 2023 (shortly after assuming his new job on Jan 1st) he reported accounting irregularities, causing both the drop in our Management score (in the final days of the chart) and the departure of the new CEO.
We reviewed public sentiment about 40 US industries over the past year, and our data shows the most overall excitement about the top 4 below (top 10%), in descending order:
Note the spike higher in Argentina’s Stock Market the Merval following their historic World Cup victory last weekend.
This is similar to academic research such as “Sports Sentiment and Stock Returns” published in the Journal of Finance by Alex Edmans, Diego Garcia, Øyvind Norli - losses dampen moods and victories lift them - leading to national economic effects...
Note how optimism about the Chinese Stock Market rocketed following rumors (and then reality) of Covid Zero policy roll back.
Behavioral finance research shows that relief from financial fear leads to - unexpectedly - excessive risk-taking, accounting for this “COVID relief rally.”
The optimism chart was developed using a z-score of our Chinese stock market optimism index, derived from millions of news and social media comments in 13 languages, over the course of 2022.
Our Leadership score for the UK tracks news and social media-based perceptions of British leadership quality over time using NLP and Fall 2022 is a rollercoaster (see chart).
Most recently, the increasing cost of living is impacting Leadership perceptions.