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We study the role that investors and financial intermediaries can play in tackling the climate emergency. Our aim is to harness financial economic theory and data analytics to generate recommendations useful to regulators and practitioners. Our proposal consists in three projects: • Project 1 offers an economic theory of the impact of responsible investors. We characterise the optimal investment policy across sectors of socially responsible investors seeking impact. The analysis generates concrete recommendations.. • Project 2 is mainly experimental. The goal is to determine whether people, when they are investing, care about the ethical dimensions of the firms they buy. The aim is to understand the psychology of non-pecuniary preferences and how it affects firm valuations. • Project 3 is empirical. We study how informational shocks regarding a company’s environmental performance affect market forecasts of its future earnings at various time horizons. Our project in multidisciplinary in its approach: the research consortium spans skills in economic theory, data analysis, psychology.
We study the role that investors and financial intermediaries can play in tackling the climate emergency. Our aim is to harness financial economic theory and data analytics to generate recommendations useful to regulators and practitioners. Our proposal consists in three projects: • Project 1 offers an economic theory of the impact of responsible investors. We characterise the optimal investment policy across sectors of socially responsible investors seeking impact. The analysis generates concrete recommendations.. • Project 2 is mainly experimental. The goal is to determine whether people, when they are investing, care about the ethical dimensions of the firms they buy. The aim is to understand the psychology of non-pecuniary preferences and how it affects firm valuations. • Project 3 is empirical. We study how informational shocks regarding a company’s environmental performance affect market forecasts of its future earnings at various time horizons. Our project in multidisciplinary in its approach: the research consortium spans skills in economic theory, data analysis, psychology.
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