Using transaction-level institutional trades and a firm's negative ESG incidents, we findthat institutional investors adjust their order flow prior to these non-financial events.First, their trading is in the same direction of post-event cumulative abnormal returnsand results in abnormal...

This paper examines institutions’ investment strategies towards environmental and social (E&S) stocks during the COVID-19 pandemic. We find a shift towards E&S by institutions in the first quarter of 2020 when the pandemic hit the financial market. We then demonstrate that high E&S portfolios...

This paper provides evidence that institutional investors’ concern for firms’ environment, social and governance (ESG) is reflected in their trading activity around firms’ negative ESG incidents. We show that institutional investors reduce net purchases around these incidents, and the...