Public Sentiment and the Price of Corporate Sustainability

George Serafeim

2018 | Academic | CSR, Investor Behavior

According to the evidence presented in this paper, public sentiment momentum about a firm’s sustainability activities has significant implications for the valuation of corporate sustainability activities and the performance of portfolios that seek alignment with better ESG performance. In the presence of negative public sentiment, firm sustainability activities are valued less and associated with positive abnormal returns in the future.