Institutional Investors and ESG Preferences

Florencio Lopez-de-Silanes, Joseph A. McCahery, Paul C. Pudschedl

2022 | Academic | Investor Behavior

We find that institutional investor holdings (as measured by 13F filings) are strongly driven by the ESG quality of companies. While investors are driven to add high quality ESG companies to their portfolios, there is a negative relationship to ESG when it comes to taking large ownership stakes...