Assistant Professor Arkodipta Sarkar documents that politicians’ preferences affect local firms’ industrial pollution and the subsequent within-firm reallocation of pollution in “Smokestacks and the Swamp”, published in Review of Financial Studies.

Assistant Professor Poorya Kabir and Tianyue Ruan find that anonymous loan applications reduce racial disparities in access to credit by increasing lender reliance on objective credit risk measures in “Reducing Racial Disparities in Consumer Credit: Evidence from Anonymous Loan Applications”, published in Management Science.

Associate Professor Qifei Zhu documents that long-term institutional investors tilt their portfolios toward firms with better Environmental, Social, and Governance (ESG) profiles in “Corporate ESG Profiles and Investor Horizons”, published in Journal of Finance.

Professor Stephen Dimmock discovers that forecast bias is associated with purchasing stocks with higher past returns and selling stocks with higher capital gains in “Extrapolators and Contrarians:  Forecast Bias and Individual Investor Stock Trading”, published in Journal of Financial Economics.

Associate Professor Alminas Žaldokas studies the role of investors in ensuring supplier’s environmental and social (E&S) compliance along global supply chains in “ESG Shocks in Global Supply Chains”, published in Review of Financial Studies.

Professor Sumit Agarwal and Allaudeen Hameed and PhD students Yuanyuan Pan and Chek Ann Tan examine the causal effect of allowing early withdrawal of pension funds on triggering increased trading and diminishing retirement wealth in “Trading in your Golden Years: The Effects of Early Pension Withdrawal on Individual Investments”, forthcoming in Review of Finance.

Professor Sumit Agarwal and Johan Sulaeman show that mutual funds increase private information acquisition activities and generate positive externalities for other stakeholders after committing to responsible investing in “Do fund managers’ commitments to responsible investing affect private information acquisition, information environment, and corporate sustainability”, accepted in Management Science.

Professor Johan Sulaeman finds that ESG ratings fail to consistently penalize companies for deforestation, appear more responsive to deforestation-related media coverage and display biases toward commodities like soy and palm oil in “Corporate ESG assessments fail to capture actual deforestation exposure”, published in Proceedings of the National Academy of Sciences (PNAS).