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Responsible Investing : The ESG-Efficient Frontier

Pedersen, Lasse Heje - 2020

We propose a theory in which each stock's environmental, social, and governance (ESG) score plays two roles: 1) providing information about firm fundamentals and 2) affecting investor preferences. The solution to the investor's portfolio problem is characterized by an ESG-efficient frontier,...

Persistent link: https://www.econbiz.de/10012847417

Do ESG Funds Make Stakeholder-Friendly Investments?

Raghunandan, Aneesh; Rajgopal, Shivaram - 2021

Investment funds that claim to focus on socially responsible stocks have proliferated in recent times. In this paper …

Persistent link: https://www.econbiz.de/10013232361

The power of ESG ratings on stock markets

Latino, Carmelo; Pelizzon, Loriana; Rzeźnik, Aleksandra - 2021

This paper studies the impact of environmental, social, and governance (ESG) ratings on investors' preferences and stock prices. We exploit a change in ESG rating methodology that non-linearly shifted ESG ratings for firms as a natural experiment. We show that the 'pseudo'-changes in the ESG...

Persistent link: https://www.econbiz.de/10012485077

Responsible institutional investing around the world

Gibson, Rajna; Glossner, Simon; Krüger, Philipp; … - 2020 - This version: December 2019

We explore a novel survey on responsible investing by institutional investors around the world and match it to archival data on their equity portfolio holdings. We document that institutions that publicly commit to responsible investing exhibit better environmental, social, and governance (ESG)...

Persistent link: https://www.econbiz.de/10012181356

The salience of ESG ratings for stock pricing : evidence from (potentially) confused investors

Rzeźnik, Aleksandra; Hanley, Kathleen Weiss; Pelizzon, … - 2021

We exploit a modification to Sustainalytics' environmental, social, and governance (ESG) rating methodology, which is subsequently adopted by Morningstar, to study whether ESG ratings are salient for stock pricing. We show that the inversion of the rating scale but not new information leads some...

Persistent link: https://www.econbiz.de/10012643898

What Is the impact of mutual funds' ESG references on portfolio firms?

Couvert, Maxime - 2021

Mutual funds must publish policies announcing how they generally vote on the different ballot items at the shareholder meetings of their portfolio firms. I manually collect 17,000 of these policies for a sample of 29 of the largest U.S. mutual fund families over 2006-2018. I find that voting...

Persistent link: https://www.econbiz.de/10012593699

Socially Responsible Investing - An Emerging Concept in Investment Management

Tripathi, Vanita - 2015

Socially Responsible Investing (SRI), which integrates social and environmental criteria into traditional investment … investment decisions as investors may start investing in socially responsible companies to reap higher returns at lower risk. We … also expect that for SRI/green investment promotion, more and more socially responsible mutual funds or green mutual funds …

Persistent link: https://www.econbiz.de/10013023440