ESG risks in times of Covid-19

By Fabrizio Ferriani, Filippo Natoli. Applied Economics Letters, 2020

175 citations recorded by the source corpus.

ABSTRACT This study analyzes whether investors take risks related to environmental, social and governance (ESG) factors into account when making portfolio decisions. We exploit the new Morningstar’s ESG risk indicators – introduced at the end of 2019 – to estimate the effect of ESG risk perception on investment fund flows. Our exercise, related to the early phase of the Covid-19 crisis when uncertainty skyrocketed, shows that investors have preferred low-ESG-risk funds, with environmental risks remaining a top concern.

Subfields: Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/e3f2902b6fdba25b32339cb42205c118a35ad65d

Citations in the corpus

• Mutual Fund Performance and Flows during the COVID-19 Crisis (2020, unknown): “(15)Related evidence is reported by Ferriani and Natoli (2020), who analyze flows into global equity large-cap funds, active and passive combined, and find that investors favor funds with low ESG risk scores.”