Brownbag Seminar（2022-02）

Topic: ESG Spillovers*

Speaker: Hongxun Ruan, Peking University

Time: Friday, April 8, 12:00–1:00 p.m. Beijing Time

Location: Room K03, Guanghua Building 2 / Zoom Conference Room

Abstract:

60% of the ESG mutual funds introduced after 2013 are managed by teams that also manage non-ESG funds. The co-managed non-ESG funds increase their holdings of high ESG stocks and exhibit superior performance among these stocks, reflecting an ability to cherry-pick the best ideas. Despite being less constrained, co-managed non-ESG funds underperform their ESG sibling funds. Our evidence suggests that mutual fund families have an incentive to shift performance from non-ESG to ESG funds to attract inflows and identifies two potential channels—ESG funds tend to trade illiquid stocks prior to their non-ESG siblings and get preferential IPO allocations.

*(with Shangchen Li, Sheridan Titman, Haotian Xiang)

Your participation is warmly welcomed!