Does Sustainable Investing Matter to the Market? 

The value of an investment is no longer just about financial returns. A growing number of investors and other corporate stakeholders are calling for their money to go toward stocks or funds that are both profitable over the long term and reflective of their social values.[1]

In a new paper, “Sustainable Investing: An incentive to do “good” and attract the “right” investors?” we show that companies have strong incentives to do “good” by serving a beneficial purpose and to attract the “right” financially sophisticated and dedicated investors. However, companies’ good practices need to be visible to the … Read more