Investors Care About ESG-Related News—When It Impacts Returns‌

Rebecca Beyer • December 7, 2024

"Earlier this year, the U.S. Securities and Exchange Commission adopted rules requiring public companies to disclose climate-related risks so investors can make informed decisions about them."

"For their new paper, Watts, Stanford PhD student Qianqian Li, and Christina Zhu of the Wharton School examined the behavior of retail investors around more than 54,000 ESG-related news events for nearly 3,300 publicly traded firms between 2015 and 2022. Over that time, they found, retail trading increases by 6% on ESG news days compared to non-event days (and by 8% post-2020). They then went further to try to determine why trading increased."


Link: https://insights.som.yale.edu/insights/investors-care-about-esg-related-news-when-it-impacts-returns

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