For more than thirty years, scholars have investigated the connection between corporate sustainability and financial performance. In 2016, Khan, Serafeim, and Yoon published what appeared to be a major breakthrough in this quest. They reported that guidance from the Sustainability Accounting...

This paper analyzes the asset pricing and portfolio implications of an important barrier to sustainable investing---uncertainty about the corporate ESG profile. In equilibrium, the market premium increases and demand for stocks declines under ESG uncertainty. In addition, the CAPM alpha and...

This paper empirically examines the theoretically ambivalent relationship between socially responsible investing (SRI) and stock performance. It extends the existing literature by considering both the US and the entire European stock markets as well as by using consistent world-wide corporate...