Brown Bag Seminar - Emanuele Rizzo (ESADE Business School)

Als Vortragenden dürfen wir Emanuele Rizzo (ESADE Business School) begrüßen.

Er wird sein Paper "Corporate Misconduct and the Capital Allocation of Prosocial Investors" (joint with Stefano Pegoraro and Rafael Zambrana, Mendoza College of Business, University of Notre Dame) vorstellen.

Abstract:

We show that the portfolio allocation of prosocial institutional investors contains forward looking information about the risk of corporate misconduct among public firms. Because prosocial funds face strong investor outflows following enforcement actions against portfolio firms, they have incentives to screen firms based on anticipated legal exposure. We measure corporate misconduct using U.S. regulatory penalties and a novel dataset of civil litigation. We construct a stock level measure that aggregates prosocial funds’ portfolio tilts relative to comparable conventional funds. This measure predicts a lower likelihood of future enforcement actions, even after controlling for ESG ratings, ESG related news, and firms’ past legal histories. The predictive power is consistent with informed screening rather than shareholder engagement. Overall, our findings identify prosocial institutional investors as a novel source of private information about corporate misconduct risk.

Das Brown Bag Seminar findet am 12. November 2026 von 12:00-13:00 Uhr im Raum D4.4.008 statt.