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Laura Starks – UT Austin

28 September 2018 @ 3:00 pm - 4:30 pm

Corporate ESG Profi les and Investor Horizons

We consider motivations for institutional investors to prefer fi rms with
higher Environmental, Social and Governance (ESG) profi les. We find that
such preferences depend critically on investor horizons: Investors with longer
horizons tend to prefer higher ESG firms significantly more than do short-term
investors. Consistent with the importance of investor horizon, we find that
investors behave more patiently toward the high ESG fi rms in their portfolios
as compared to their other holdings, selling relatively less after negative earn-
ings surprises or poor stock returns. We further support these findings using
changes in the FTSE4Good US Index as shocks to firms’ ESG reputations.


28 September 2018
3:00 pm - 4:30 pm
Event Categories:


McIntire, RRH 260