Abstract
We are the first to show that institutional and retail investors value ESG differently, with 2.7 basis points and 1.3 basis points for every unit deduction on ESG risk per quarter, respectively. We prove that different investors have preferences and mechanisms for ESG investments through different perspectives on return, ESG risks, and components of ESG, reflected in their investment behaviours. Our evidence suggests that institutional investors are actively engaging in greenwashing activities while retail investors only engage in such activities passively.
| Original language | English |
|---|---|
| Publication status | In preparation - 2024 |
Keywords
- ESG
- Sustainable finance
- Investor behavior
- Socially responsible investing
- Financial Market
- Greenwashing;