Open Access

Andrea Jacob

• This dissertation departs to new frontiers and demonstrates that with progress in time, new aspects need to be incorporated in asset pricing theory and finance practice to effectively account for advancements and changes in societal values and beliefs. In specific, the aim of this dissertation is to capture the impacts of sustainability considerations on asset pricing theory and finance practice. For this purpose, it includes six articles that address different components within the asset pricing framework. Articles Ⅰ to Ⅲ scrutinize underlying model assumptions and derive necessary modifications for traditional models, while Articles Ⅳ to Ⅵ assess implications for finance practice (i.e., strategies and tools). Apart from Article Ⅰ that is embedded in the traditional context, the remaining articles are based on the implications of revised market expectations resulting from sustainability considerations. In summary, all articles increase the understanding of price formation processesThis dissertation departs to new frontiers and demonstrates that with progress in time, new aspects need to be incorporated in asset pricing theory and finance practice to effectively account for advancements and changes in societal values and beliefs. In specific, the aim of this dissertation is to capture the impacts of sustainability considerations on asset pricing theory and finance practice. For this purpose, it includes six articles that address different components within the asset pricing framework. Articles Ⅰ to Ⅲ scrutinize underlying model assumptions and derive necessary modifications for traditional models, while Articles Ⅳ to Ⅵ assess implications for finance practice (i.e., strategies and tools). Apart from Article Ⅰ that is embedded in the traditional context, the remaining articles are based on the implications of revised market expectations resulting from sustainability considerations. In summary, all articles increase the understanding of price formation processes and resulting investment practices. By capturing the impacts of sustainability considerations throughout the framework of asset pricing, this dissertation is at the forefront of defining a holistic concept for sustainability integration in asset pricing theory and finance practice. Eventually, it contributes to more informed decision-making processes and thus drives a more profound reallocation of capital flows.…