Publication: Revealed Beliefs about Responsible Investing: Evidence from Mutual Fund Managers
Revealed Beliefs about Responsible Investing: Evidence from Mutual Fund Managers
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Orlov, V., Ramelli, S., & Wagner, A. (2023). Revealed Beliefs about Responsible Investing: Evidence from Mutual Fund Managers (No. 22–98; Swiss Finance Institute Research Paper). https://doi.org/10.2139/ssrn.4296497
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What do asset managers believe regarding the financial performance of Environmental, Social, and Governance (ESG) investment strategies? We address this question by exploring the relationship between fund managers’ co-ownership and portfolio ESG performance. Managers with more “skin in the game” exhibit significantly lower ESG performance in funds they manage than their peers. ESG performance is sensitive to changes in managerial ownership. Co-investing managers were less likely to increase their stake in high-ESG stocks after an exog
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Citations
Orlov, V., Ramelli, S., & Wagner, A. (2023). Revealed Beliefs about Responsible Investing: Evidence from Mutual Fund Managers (No. 22–98; Swiss Finance Institute Research Paper). https://doi.org/10.2139/ssrn.4296497