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Annual Conference

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Sustainable and Green Finance

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May 2023

This paper explores a carbon premium – the extra yield investors demand to buy bonds issued by firms with more greenhouse gas emissions – in the US corporate bond market. We analyse a carbon premium along two channels, via panel regression. One is the preference channel, under which the premium ...
Keywords: climate change, carbon emissions, corporate bond spread, term structure
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Annual Conference

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Sustainable and Green Finance

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May 2023

We propose a theory of corporate social responsibility by linking it to the firm’s product markets. The firm’s product exhibits network effects in the sense that the product’s value to each consumer increases with the number of consumers. Moreover, with the technology development, the firm can...
Keywords: Corporate social responsibility, network effect, personalized pricing, coordination
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Annual Conference

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Sustainable and Green Finance

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May 2024

Carbon pricing is considered as one of the most cost-effective ways to reduce carbon emissions. However, a major block to pricing carbon pollution is the concern about the economic costs. This paper examines the impacts of carbon pricing initiatives on the operating performance and market value of p...
Keywords: Climate change, carbon pricing, carbon tax, emission trading systems, carbon premium, distributional effects
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Annual Conference

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Sustainable and Green Finance

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May 2022

Even against increasing interest in socially responsible investing mandates, we find that implementing ESG strategies can cost nothing. Modifying optimal portfolio weights to achieve an ESG-investing tilt negligibly affects portfolio performance across a broad range of ESG measures and thresholds. T...
Keywords: ESG, IPCA, tangency portfolio, portfolio tilt, responsible investing, sustainable investing
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Annual Conference

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Sustainable and Green Finance

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May 2022

We propose a strategic theory of Corporate Social Responsibility (CSR). Shareholder maximizers commit to a mission statement that extends beyond firm value maximization. This commitment leads firms to change their actions in ways that ultimately favor shareholders. We thus provide a formal analysis ...
Keywords: Leadership, corporate social responsibility, shareholder model, stakeholder model, externalities, mi
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