Divest or Engage? Strategies for Responsible Investing

Divest or Engage? Strategies for Responsible Investing

  • 28 October 2019
  • University of Cambridge

About the event:

Pension fund beneficiaries increasingly expect that the savings entrusted to them are invested responsibly. Students, faculty and alumni expect the same for university endowments. Retail funds marketed as sustainable enjoy large inflows, especially in Europe. Most institutional and retail investment managers have made a public commitment to sustainable and responsible investing (SRI).

How should asset owners and investment managers incorporate environmental, social and governance (ESG) criteria into their strategy? Is active management superior because fund managers can select companies with best practices and avoid companies with poor ESG records? Do index funds engage sufficiently and what impact do they have? Should funds divest from businesses or sectors whose products or conduct are deemed unacceptable?

This conference will bring together the latest academic thinking and research to address these general and more specific questions: Do ESG/SRI funds underperform because they constrain portfolio construction? Do ESG/SRI funds outperform from a financial perspective, benefitting from superior risk management and quality leadership? Do ESG/SRI funds perform in line with the market? What are the benefits and risks from running an ethically screened portfolio?

How can these questions be addressed if different portfolios tend to have varying screening procedures? Ultimately, this event will consider the broader question of how best to incorporate ESG concerns into investment portfolios.

Organisers:

Marco Becht, Solvay Brussels School, ECGI and CEPR

Elroy Dimson, University of Cambridge and ECGI

Andrew Ellul, Kelley School of Business, Indiana University and ECGI and CEPR

Oğuzhan Karakaş, University of Cambridge and ECGI

Registration:

To register for this event, please click on the following link: https://cambridgejudgebusinessschool.formstack.com/forms/divestorengage

Contact:

Please contact the Conference team at the Centre for Endowment Asset Management:

ceam@jbs.cam.ac.uk

Location:

The event will take place in the Howard Building at Downing College. The address for Downing College is provided below. Upon arrival at the Porters Lodge of the College, the Porter and event organisers will be on hand to direct you to the Howard Building.

The Howard Building 
Downing College
Regent Street
Cambridge
CB2 1DQ

Useful travel information

By train

Cambridge is on the main lines from London King's Cross and London Liverpool Street. Downing College is situated about ¾ mile from the railway station. It is served by regular buses and taxis or a 15-min journey on foot.

By car

Please note that there is no onsite parking available at Downing College, with the exception of a few spaces that are reserved for people with accessibility requirements and require parking close to the venue. Parking in the city centre is also very limited. Attendees are advised to take public transport where possible. Those for whom travel by car is the only option, we advise that you use Cambridge Park & Ride. Prices apply and are available here. All Park & Ride buses stop at the city center central bus station which is a five minute walk from the event venue.

Information

Address:
Downing College, University of Cambridge
Contact:
Elaine McPartlan
European Corporate Governance Institute (ECGI)

Monday 28 October

09:00
- 09:30

Registration & coffee

10:15
- 11:05

The Firms’ Reaction to Changes in the Governance Preferences of Active Institutional Owners

Speakers:
Back to full programme

The Firms’ Reaction to Changes in the Governance Preferences of Active Institutional Owners

Time:
10:15h
- 11:05h

The Firms’ Reaction to Changes in the Governance Preferences of Active Institutional Owners. Ruth Aguilera, Vicente Bermejo, Javier Capapé, and Vicente Cuñat (2019). Available at www.ssrn.com/id=3411566

Speakers

11:05
- 11:20

Coffee break

Back to full programme

Survey on Sector Exclusions

Time:
11:20h
- 12:10h

Corporate Ethical Behaviours and Firm Equity Value and Ownership: Evidence from the GPFG's Ethical Exclusions. Vaska Atta-Darkua, (2019). Available at www.ssrn.com/id=3388868

Speakers

12:15
- 13:30

Lunch

13:10
- 14:20

Governance Through Voice and Exit

Speakers:
Back to full programme

Governance Through Voice and Exit

Time:
13:10h
- 14:20h

Governance through Voice and Exit. Marco Becht, Julian Franks, and Hannes Wagner (2019). 

Speakers

Back to full programme

ESG Rating Disagreement and Stock Returns

Time:
14:20h
- 15:30h

ESG rating disagreement and stock returns. Peter Schmidt, Rajna Gibson, Philipp Krueger, and Nadine Riand (2019). Available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3433728

Speakers

15:30
- 15:45

Coffee break

16:35
- 17:25

Panel discussion

17:25
- 17:45

Concluding Remarks

17:45
- 18:30

Networking reception

Speakers

Presentations

Back to all presentations

Introduction: Divest or Engage - an overview of the issues

Time:
09:30h
- 10:15h

Speakers

The Firms’ Reaction to Changes in the Governance Preferences of Active Institutional Owners

Back to all presentations

The Firms’ Reaction to Changes in the Governance Preferences of Active Institutional Owners

Time:
10:15h
- 11:05h

The Firms’ Reaction to Changes in the Governance Preferences of Active Institutional Owners. Ruth Aguilera, Vicente Bermejo, Javier Capapé, and Vicente Cuñat (2019). Available at www.ssrn.com/id=3411566

Speakers

Back to all presentations

Survey on Sector Exclusions

Time:
11:20h
- 12:10h

Corporate Ethical Behaviours and Firm Equity Value and Ownership: Evidence from the GPFG's Ethical Exclusions. Vaska Atta-Darkua, (2019). Available at www.ssrn.com/id=3388868

Back to all presentations

Governance Through Voice and Exit

Time:
13:10h
- 14:20h

Governance through Voice and Exit. Marco Becht, Julian Franks, and Hannes Wagner (2019). 

Speakers

Back to all presentations

ESG Rating Disagreement and Stock Returns

Time:
14:20h
- 15:30h

ESG rating disagreement and stock returns. Peter Schmidt, Rajna Gibson, Philipp Krueger, and Nadine Riand (2019). Available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3433728

Speakers

Panel discussion

Back to all presentations

Panel discussion

Time:
16:35h
- 17:25h