5x new research on hate crimes, ESG comparability, say on pay, costly heuristics and bond factors
5x new research on hate crimes, ESG comparability, say on pay, costly heuristics and bond factors (#shows full paper SSRN downloads as of March 26th,2025)
Hate signals: The Cost of Tolerating Intolerance: Right-wing Protest and Hate Crimes by Sulin Sardoschau and Annalí Casanueva-Artís as of Mach 20th, 2025 (#33): “… This paper investigates how right-wing demonstrations affect the incidence of hate crimes, focusing on Germany’s largest far-right movement since World War II … we find that a 20% increase in local protest attendance nearly doubles hate crime occurrences. … large protests primarily act as signals of broad xenophobic support, legitimizing extremist violence. This signaling effect propagates through right-wing social media net works and is intensified by local newspaper coverage and Twitter discussions. Consequently, large protests shift local equilibria, resulting in sustained higher levels of violence primarily perpetrated by repeat offenders. Notably, these protests trigger resistance predominantly online, rather than physical counter-protests“ (abstract).
ESG comparability? Accounting Comparability, ESG Reputational Risk and Corporate Investment Efficiency by Kostantinos Chalevas, Maria Giaka, Dimitrios Gounopoulos, and Dimitrios Konstantios as of Oct. 20th, 2024 (#313): “…. we present robust evidence that firms with greater (Sö: accounting) comparability benefit from lower ESG reputational risk, reduced cost of capital, and increased investment activity. … Our findings underscore the critical role of comparability in enhancing financial decision-making …”
Good say on pay? Shareholder Votes and Executive Strategic Disclosures: Evidence from Say-on-Pay by Summer Zhao as of Feb. 28th,2025 (#105): “… Say-on-Pay (SoP) in the United States … requires regular shareholder votes on executive compensation. … I present causal evidence that executives subject to SoP provide abnormally optimistic disclosures to potentially influence shareholders’ perceptions of their performance and voting decisions. This tone inflation is associated with more favorable SoP voting results but subsequent declines in firm value … the documented tone inflation is driven by executives’ heightened career concerns and compensation more closely tied to stock performance after SoP adoption … the findings highlight the unintended consequences of shareholder votes on managers’ strategic disclosure incentives“ (abstract).
Costly heuristics: How Costly are Trading Heuristics? By Hee-Seo Han, Xindi He, and Daniel Weagley as of March 7th, 2025 (#140): “… Our set of heuristics is derived from processing articles published in top finance journals over the past 75 years. … We find a negative relationship between heuristic usage and future returns for retail investors. … In contrast, institutional investors selectively employ a limited subset of heuristics and generate superior returns on trades incorporating these heuristics. … We also document that heuristic usage is more prevalent among female investors and investors with larger balances …“ (p.39/40).
Bond factor failures: The Corporate Bond Factor Zoo by Alexander Dickerson, Christian Julliard, and Philippe Mueller as of March 6th, 2025 (#39): “Analyzing 563 trillion possible models, we find that the majority of tradable factors designed to price bond markets are unlikely sources of priced risk …” (abstract).
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Ein Fondsinvestment war also bisher ein „Free Lunch“ in Bezug auf Nachhaltigkeit: Ein besonders konsequent nachhaltiges Portfolio mit marktüblichen Renditen und (eher niedrigeren) Risiken. Vergangene Performance ist allerdings kein guter Indikator für künftige Performance.
