Wednesday, 5th of March 2025, 10.30 am – 12 pm
Mirco Rubin (EDHEC Business School) will present the paper “Green Window Dressing”
This paper establishes that mutual funds strategically time the trades of ESG stocks around disclosure to inflate their sustainability ratings. This claim is supported by four analyses. First, we show that funds’ ESG betas increase shortly before disclosure and decrease shortly afterwards. Second, we establish that funds outperform the portfolios they disclose. Third, we document an increase in ESG buys (sells) before (after) disclosure based on imputed fund trades. Fourth, we provide evidence that ESG stock prices temporarily rise before disclosure and decline afterwards. Overall, we document that green window dressing positively impacts fund sustainability ratings, performance, and flows.
Please note that this seminar will take place in a hybrid mode (the seminar will take place at the ACPR 4 Pl. de Budapest, 75009 Paris , and will also be streamed online). (Free) registration (for both in person or online participation) is compulsory by mail at chaireACPR@acpr.banque-france.fr
If you opt for online participation, the connection details will be sent to you in the following days.
