The real effects of sustainable & responsible investing?
Economics Letters, 2017, vol. 156, issue C, 10-14
Sustainable and responsible investing (SRI) may have a mixed effect on firms’ incentives to remove negative externalities. Whereas SRI screening incentivizes the removal of externalities, SRI trading can disincentivize it when traders disagree on the externality removal’s cash flow effects.
Keywords: Sustainable and responsible investing; Externality; Asymmetric information; Open disagreement; Cost of capital (search for similar items in EconPapers)
JEL-codes: G12 G39 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:156:y:2017:i:c:p:10-14
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