Value or Values: Evidence from the ESG Performance of Asset Managers
Prof. Xuemin (Sterling) YAN
Joseph R. and Amy M. Perella Chair of Finance
Professor of Finance, Lehigh University
Date: 18 October 2024 (Friday)
Time: 10:30 to 12:00
Venue: E22-G008
Host: Prof. Jing XIE, Associate Professor in Finance
Abstract
We provide novel evidence on asset managers’ own ESG performance. We classify fund management companies who act responsibly in their own operations as “responsible asset managers”. Funds experience significantly lower flows following extreme negative ESG news about their fund management companies, consistent with investors valuing sustainability. Responsible asset managers are less inclined to adopt a blanket approach to voting on contentious ESG proposals, although they are not more likely to vote for ESG proposals. We find that responsible asset managers underperform irresponsible asset managers. Principles for Responsible Investment (PRI) signatories exhibit more, not fewer, ESG risk incidents after signing PRI.
Speaker
Prof. YAN is a Perella Chair and Professor of Finance at Lehigh University. He obtained a B.A. in finance from Renmin University of China in 1991 and a Ph.D. in finance from the University of Iowa in 2001. Before joining Lehigh University in 2019, Prof. YAN spent 18 years at the University of Missouri, as an assistant, associate, and full professor of finance. He was the Richard G. Miller Professor of Finance from 2008 to 2019. Prof. YAN’s main research interests include asset pricing, institutional investors, mutual funds, hedge funds, short selling, and liquidity. Prof. YAN has published extensively in top academic journals including the Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Management Science, Journal of Financial and Quantitative Analysis, and Journal of Accounting Research. He is an associate editor of the Journal of Financial Research and the Asia-Pacific Journal of Financial Studies. Prof. YAN’s research has been cited in Business Week, The Economist, Financial Times, and The Wall Street Journal.
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