FIN Seminar/ Webinar – Nickolay Gantchev

april, 2023

13apr13:0014:00FIN Seminar/ Webinar - Nickolay Gantchev

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Event Details

CEF.UP – FIN Seminar/Webinar

Thursday – April 13th, 2023 at 1:00 p.m. |Room 305| Online

 

“Sustainability or Performance: Ratings and Fund Managers’ Incentives”

 Nickolay Gantchev  – Warwick Business School  (joint work with Mariassunta Giannetti and Rachel Li)

 

Abstract:

“We explore how mutual fund managers and investors react when the tradeoff between a fund’s sustainability and performance becomes salient. Following the introduction of Morningstar’s sustainability ratings (the “globe” ratings), mutual funds increased their holdings of sustainable stocks to attract flows. Such sustainability-driven trades, however, underperformed, impairing the funds’ overall performance. Consequently, a tradeoff between sustainability and performance emerged. In the new equilibrium, the globe ratings do not affect investor flows and funds no longer trade to improve their globe ratings.”

 

 

Time

(Thursday) 13:00 - 14:00

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