Using a sample of S&P 500 firms between 2013 and 2017, we study the impact of ESG rating disagreement on stock returns. We conjecture that for disagreement about environmental ratings, a risk-based explanation induces a positive relationship...Read more
We show that mutual funds compete for climate-conscious investment flows. In April 2018, Morningstar introduced a climate-focused label for mutual funds. The release of the “Low Carbon Designation” induced reactions on both the demand and supply...Read more
We draw on new data and theory to examine how private market contracts adapt to serve multiple goals, particularly the social-benefit goals that impact funds add to their financial goals. Counter to the intuition from multitasking models (...Read more
This paper explores the role of investor stewardship against a background of broader efforts to improve the sustainability of financial markets. Stewardship codes, encouraging institutional investors to act as long-term, responsible shareholders...Read more
Are MNEs more socially responsible, and where is this more likely to occur? Are rms less responsible in emerging or transitional economies, and what impact does the dominant national corporate governance regime have? We explore the association...Read more
We investigate whether a firm’s social capital, and the trust that it engenders, are viewed favorably by bondholders. Using firms’ corporate social responsibility (CSR) activities to proxy for social capital, we find...Read more
We study investor activism promoting environmental, social and governance (ESG) improvements using a proprietary dataset. Targets have a higher market share, analyst coverage, stock returns, and liquidity. The engagements lead to ESG rating...Read more
In a 2010 report, The Economist called the resurgence of state-owned mega-en- terprises, especially those in emerging economies, “Leviathan Inc.”, and criticized their poor governance and e ciency. We show that stateowned enterprises engage more...Read more
Preamble
Sustainability and Corporate Social Responsibility (CSR) have become important to many corporations and the...Read more
Market discipline is viewed by policymakers as essential to achieve a more environmentally and socially sustainable economy. Investors have...Read more
The Swedish House of Finance (SHoF) at the Stockholm School of Economics and the European Corporate Governance Institute (ECGI) are pleased to...Read more
A variety of professional data vendors nowadays provide firm-level Environmental, Social, and Governance (ESG) ratings (or scores). These ratings...Read more