Bank Bond Holdings and Bail-in Regulatory Changes: Evidence from Euro Area Security Registers

Angie Andrikogiannopoulou, Philipp Krueger, Shema Mitali and Filippos Papakonstantinou
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Angie Andrikogiannopoulou: King’s College London
Philipp Krueger: University of Geneva - Geneva Finance Research Institute (GFRI); Swiss Finance Institute; European Corporate Governance Institute (ECGI); University of Geneva - Geneva School of Economics and Management
Filippos Papakonstantinou: King’s College London

No 25-43, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: We construct novel measures of mutual funds’ environmental, social, and governance (ESG) commitment by analyzing the discretionary investment-strategy descriptions of their prospectuses. We find that fund flows respond strongly to such text-based ESG measures. Using discrepancies between text- and fundamentals-based ESG measures, we identify greenwashing. We find that greenwashing is more prevalent since ESG issues have started attracting mainstream attention and among funds with lower past flows and weaker oversight. Furthermore, greenwashers attract similar flows but have worse performance than genuinely-green funds, suggesting that investors cannot distinguish them and suffer welfare losses. Our methodology could help regulators combat ESG-related misconduct.

Keywords: ESG; Prospectus; Greenwashing; Text Analysis; Mutual Funds; Fund Flows; Fund Performance (search for similar items in EconPapers)
JEL-codes: G11 G23 (search for similar items in EconPapers)
Pages: 67 pages
Date: 2025-04
New Economics Papers: this item is included in nep-eec, nep-env and nep-fmk
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Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp2543

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