TY  - UNPD
A1  - Kräussl, Roman
A1  - Oladiran, Tobi
A1  - Stefanova, Denitsa
T1  - A review on ESG investing: investors’ expectations, beliefs and perceptions
N2  - This study examines the recent literature on the expectations, beliefs and perceptions of investors who incorporate Environmental, Social, Governance (ESG) considerations in investment decisions with the aim to generate superior performance and also make a societal impact. Through the lens of equilibrium models of agents with heterogeneous tastes for ESG investments, green assets are expected to generate lower returns in the long run than their non- ESG counterparts. However, at the short run, ESG investment can outperform non-ESG investment through various channels. Empirically, results of ESG outperformance are mixed. We find consensus in the literature that some investors have ESG preference and that their actions can generate positive social impact. The shift towards more sustainable policies in firms is motivated by the increased market values and the lower cost of capital of green firms driven by investors’ choices.
T3  - CFS working paper series - No. 694 
KW  - Environmental
KW  - Social
KW  - Governance
KW  - ESG
KW  - Performance
KW  - Sustainability
KW  - Social Impact
KW  - Greenwashing
Y1  - 2022
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/68150
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-681504
UR  - https://ssrn.com/abstract=4123999
VL  - May 2022
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -