The Value of NGO Activism: Evidence from Sustainability Disclosure

Prof. Janja BRENDEL, Assistant Professor at the School of Accountancy, The Chinese University of Hong Kong (CUHK) Business School, HONG KONG

Date: 7 November 2025 (Thursday)
Time: 10:00-11:30
Venue: E22-G015
Host: Prof. Rubin HAO, Assistant Professor in Accounting

Abstract
We examine the implications of NGO activism around the world and their role as corporate watchdogs using novel data on NGO allegations about misleading or false corporate environmental and social claims (“E&S-washing”). These NGO campaigns primarily target large, visible firms in the consumer-facing or oil and gas industries, focusing predominantly on statements on how firms impact climate change, consumer health, and waste. NGOs target E&S-washing in customer-focused disclosures like advertisements, product labels, and packaging, which are unaffected by recent sustainability disclosure regulations. Stocks react with negative announcement returns to NGO allegations, especially when the alleged behavior concerns financially-material E&S issues. Negative media reporting also rises. NGO campaigns have real effects: Firm criticized for climate-related claims reduce their Scope 1 emissions, but this effect comes with a simultaneous increase in emissions in the supply chain. The corporate response arises, at least partially, because NGOs catalyze engagement by institutional investors.

Speaker
Prof. Janja BRENDEL has been an Assistant Professor at the School of Accountancy, The Chinese University of Hong Kong (CUHK) Business School, since 2021. She earned her PhD in Accounting from Humboldt University of Berlin, part of the German Universities Excellence Initiative, and holds a Master’s and a Bachelor of Science in Accounting and Finance from the London School of Economics and Political Science. Prof. Brendel’s interest in accounting and finance began during her time as a banking apprentice at Deutsche Bank. She is passionate about teaching the language of accounting and understanding its economic foundations. Her teaching experience includes courses in financial accounting, valuation, and auditing. She has also served as a Research and Teaching Assistant at Humboldt University and is a Research Fellow of TRR 266 Accounting for Transparency. Before pursing her PhD, she worked as an investment banking analyst, specializing in M&A and restructuring deals, gaining experience at Greenhill, Lehman Brothers, BNP Paribas, and Deutsche Bank. Additionally, she worked at Deutsche Bank’s Chinese Joint Venture in Beijing, which enriches her ability to connect research and teaching to real-world issues. Professor Brendel aims to have a tangible impact through her work, addressing relevant issues that have been featured in the Financial Times. Her primary research interests lie in empirical financial accounting, with a focus on firms’ financial reporting and the role of information in capital markets. Recently, her research has concentrated on activist investors, including short-sellers, and the cryptocurrency markets. Her work has been published in leading journals, including The Journal of Accounting Research and the Review of Accounting Studies. Additionally, she has received two government grants in Hong Kong to support her innovative research initiatives.

All are welcome!