Conference Programme
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available). Note that the schedule is subject to changes.
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Daily Overview |
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Parallel Session 04: Strategic Capital Allocation for Sustainability Location: Seminar Room 7 (Level 2) Session Chair: Narae Lee, KAIST | |
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Value versus Values: Does Stock Liquidity Affect Corporate Environmental Policies? 1: University of Cambridge; 2: Cornell University One fundamental challenge in sustainable investing is to distinguish value from values (Starks 2023). Leveraging the Tick Size Pilot Program (TSP)—a natural experiment that increased treatment firms’ tick size from one cent to five cents—we find that green institutional investors with a relatively low willingness-to-pay for environmental objectives (i.e., value investors) significantly influence corporate environmental policies. During the TSP, these value investors reduced their divestment intensity following environmental incidents at treatment firms, relative to control firms. Treatment firms’ environmental ratings declined, with the drop most pronounced among those highly exposed to exit threats on environmental issues. | |