Dr Samuel M. Hartzmark , The University of Chicago Booth School of Business
Examining a shock to the salience of the sustainability of $8 trillion of mutual fund assets, we present causal evidence that investors value sustainability. Being categorised as a low sustainability fund resulted in outflows of more than $12 billion and an increased probability of liquidation. High sustainability funds received inflows greater than $22 billion. We can reject that mutual fund investors on average view sustainability negatively or do not care about sustainability. Investors reacted to the extreme categories, largely ignoring middle categories and detailed aspects of the ratings. Experimental evidence suggests that higher sustainability is viewed as a positive predictor of future performance, but we do not find evidence of such performance in the data.
Speaker bio
Samuel M. Hartzmark studies asset pricing and behavioural finance. His research has appeared in the Journal of Finance, Review of Financial Studies, the Journal of Financial Economics, the Quarterly Journal of Finance, and the Review of Asset Pricing Studies. He has received a number of awards including the 2016 AQR Insight Award, Best Paper in the Review of Asset Pricing Studies 2016, 2nd prize Fama-DFA award for best paper in asset pricing research in the Journal of Financial Economics 2015, the Hillcrest Behavioural Finance Award, the UBS Global Asset Management Award, the Michael J. Barclay young scholar award and he was a finalist for the 2014 AQR Insight award. His work has been covered by a variety of media outlets including CNBC, Forbes, the Wall Street Journal, and Bloomberg among others.
Hartzmark holds a PhD from Marshall School of Business at the University of Southern California, a MBA from University of Chicago Booth School of Business and a BA in mathematics/economics (summa cum laude) with a double major in religion from Emory University.
Event timings
Date:
24 October 2017
Start Time:
11:00
End Time:
12:30