Abstract
ABSTRACT Examining a shock to the salience of the sustainability of the U.S. mutual fund market, we present causal evidence that investors marketwide value sustainability: being categorized as low sustainability resulted in net outflows of more than $12 billion while being categorized as high sustainability led to net inflows of more than $24 billion. Experimental evidence suggests that sustainability is viewed as positively predicting future performance, but we do not find evidence that high‐sustainability funds outperform low‐sustainability funds. The evidence is consistent with positive affect influencing expectations of sustainable fund performance and nonpecuniary motives influencing investment decisions.
Keywords
SustainabilitySalience (neuroscience)Sustainability organizationsBusinessEconomicsValue (mathematics)
Affiliated Institutions
Related Publications
THE PERFORMANCE OF MUTUAL FUNDS IN THE PERIOD 1945–1964
The ability of the portfolio manager or security analyst to increase returns on the portfolio through successful prediction of future security prices, and The ability of the por...
SECURITY PRICES, RISK, AND MAXIMAL GAINS FROM DIVERSIFICATION*
Sections II and III of this paper set forth the simple logic which leads directly to the determination of explicit equilibrium prices of risk assets traded in competitive market...
Publication Info
- Year
- 2019
- Type
- article
- Volume
- 74
- Issue
- 6
- Pages
- 2789-2837
- Citations
- 1327
- Access
- Closed
External Links
Social Impact
Altmetric
PlumX Metrics
Social media, news, blog, policy document mentions
Citation Metrics
1327
OpenAlex
Cite This
Samuel M. Hartzmark,
Abigail B. Sussman
(2019).
Do Investors Value Sustainability? A Natural Experiment Examining Ranking and Fund Flows.
The Journal of Finance
, 74
(6)
, 2789-2837.
https://doi.org/10.1111/jofi.12841
Identifiers
- DOI
- 10.1111/jofi.12841