Author : Jie Cao
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (122 download)
Book Synopsis ESG Preference, Institutional Trading, and Stock Return Patterns by : Jie Cao
Download or read book ESG Preference, Institutional Trading, and Stock Return Patterns written by Jie Cao and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Socially responsible (SR) institutions tend to focus more on the ESG performance and less on quantitative signals of value. Consistent with this difference in focus, we find that SR institutions react less to quantitative mispricing signals. Our evidence suggests that the increased focus on ESG may have influenced stock return patterns. Specifically, abnormal returns associated with these mispricing signals are greater for stocks held more by SR institutions. The link between SR ownership and the efficacy of mispricing signals only emerges in recent years with the rise of ESG investing, and is significant only when there are arbitrage-related funding constraints.