Annual Conference

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Sustainable and Green Finance

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May 2023

Impact Investing and Venture Capital Industry: Experimental Evidence

Ye ZHANG
This paper studies the effect of startups’ ESG characteristics on venture capitalists’ investments by linking investors’ behavior in an incentivized experiment to their real-world portfolio data. I find that investors perceive impact ventures to be less profitable and harder to evaluate than s...
Keywords: Sustainable Finance, Field Experiments, Venture Capital, Entrepreneurship
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Annual Conference

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Sustainable and Green Finance

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May 2023

ESG Shocks in Global Supply Chains

Emilio BISETTI, Guoman SHE, Alminas ZALDOKAS
We show that U.S. firms cut imports by 11.1% and are 4.2% more likely to terminate a trade relationship when their international suppliers are hit by environmental and social (E&S) scandals. These trade cuts are larger for publicly-listed U.S. importers facing high E&S investor pressure and ...
Keywords: ESG, environmental scandals, global supply chains, regulatory outsourcing, shareholder pressure
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Annual Conference

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Sustainable and Green Finance

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May 2023

Carbon Stock Devaluation

Darwin CHOI, Gao ZHENYU, Wenxi JIANG, Hulai ZHANG
Using global evidence, we show that high-emission firms tend to have lower price valuation ratios than low-emission firms in the same country, especially in recent years. The price gap coincides with heightened climate awareness following local natural disasters, as well as with the divestment from ...
Keywords: Price Valuation, Divestment, Climate Awareness, Carbon Emissions, Green Innovation
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Annual Conference

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Sustainable and Green Finance

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May 2023

The Rise of Corporate Social Responsibility: When Firms Set Personalized Prices for Network Goods

Yan XIONG, Liyan YANG
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 2023

Climate Change Salience and International Equity Returns

David PARSLEY, Helen POPPER
In this study, we examine climate change salience risk in international equity markets. We find that (1) exposure to a single, broad measure of climate change salience risk is pervasive; notably it arises regardless of firms’ greenhouse gas emissions, (2) the exposure is priced: a return discount ...
Keywords: Climate change risk, climate change salience, climate finance, carbon risk, global warming, climate beta, international financial markets, global equity markets
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