Journal article
Are All ESG Funds Created Equal? Only Some Funds Are Committed
The Review of financial studies, v 39(1), pp 79-113
01 Jan 2026
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
Environmental, social, and governance (ESG) funds have heterogeneous incentives to engage with portfolio firms. If funds view ESG as a value driver, then these incentives will affect funds' behavior and thus their impact on firms. We compare ESG funds with similar levels of ESG investments but different incentives to engage. Funds with higher incentives to engage, that is, committed ESG funds, conduct more ESG-related information acquisition, pursue longer term investment strategies, engage more intensely on ESG issues, and have greater real impacts. Moreover, committed ESG funds have outperformed other ESG funds within subportfolios with higher and more effective ESG engagement.
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Details
- Title
- Are All ESG Funds Created Equal? Only Some Funds Are Committed
- Creators
- Michelle Lowry - Drexel University, FinancePingle Wang - The University of Texas at DallasKelsey D. Wei - The University of Texas at Dallas
- Publication Details
- The Review of financial studies, v 39(1), pp 79-113
- Publisher
- Oxford Univ Press
- Number of pages
- 35
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:001610073000001
- Scopus ID
- 2-s2.0-105025699390
- Other Identifier
- 991022123506804721
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics