Which investors support the transition toward a low-carbon economy? Exit and Voice in mutual funds
- Reducing portfolio carbon footprints (Exit) and voting in favor of climate-related shareholder proposals (Voice) are among the main actions that investors can take to promote an accelerated transition toward a low-carbon economy. This paper studies three important investor groups that can be instrumental in driving the transition and evaluates their Exit and Voice behavior. I find that the five largest asset managers perform poorly on Exit and Voice over the full sample period but improved on both in more recent years. Only a small fraction of signatories to sustainable investor initiatives are supportive of the transition. Counterintuitively, investors who perform poorly on Exit, perform well on Voice. Finally, I examine the financial consequences of employing Exit and Voice and find that Exit is positively related to risk-adjusted fund returns; however, this is not necessarily attributable to superior skill of fund managers.
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| Author: | Jonas ZinkGND |
|---|---|
| URN: | urn:nbn:de:bvb:384-opus4-1125165 |
| Frontdoor URL | https://opus.bibliothek.uni-augsburg.de/opus4/112516 |
| ISSN: | 1470-8272OPAC |
| ISSN: | 1479-179XOPAC |
| Parent Title (English): | Journal of Asset Management |
| Publisher: | Springer Science and Business Media LLC |
| Type: | Article |
| Language: | English |
| Year of first Publication: | 2024 |
| Publishing Institution: | Universität Augsburg |
| Release Date: | 2024/04/11 |
| Tag: | Information Systems and Management; Strategy and Management; Business and International Management |
| Volume: | 25 |
| Issue: | 2 |
| First Page: | 147 |
| Last Page: | 161 |
| DOI: | https://doi.org/10.1057/s41260-023-00345-w |
| Institutes: | Wirtschaftswissenschaftliche Fakultät |
| Wirtschaftswissenschaftliche Fakultät / Institut für Betriebswirtschaftslehre | |
| Wirtschaftswissenschaftliche Fakultät / Institut für Betriebswirtschaftslehre / Lehrstuhl für Finanz- und Bankwirtschaft | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Licence (German): |  CC-BY 4.0: Creative Commons: Namensnennung (mit Print on Demand) |
