Publication
When words move markets: mutual fund flows following ESG label adoption
| Summary: | This thesis investigates how investors respond to ESG signals in mutual fund markets. The group analysis examines fund flows and performance in relation to ESG classifications, showing that sustainability ratings alone provide an incomplete picture of investor behavior. To address this, the individual analysis focuses on changes in ESG fund names, a clear labeling tool. Using a panel event-study approach with Morningstar and CRSP data, it examines flow patterns around ESG name changes. The results indicate significant flow responses following adoptions, suggesting that investors consider ESG labels beyond just the actual sustainability metrics. Overall, the study highlights the importance of ESG communication methods alongside formal ratings. |
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| Main Authors: | Mtir, Nour Hadj |
| Subject: | ESG investing Greenwashing Fund flows Sustainability labels Investor attention Event study Mutual funds |
| Year: | 2026 |
| Country: | Portugal |
| Document type: | master thesis |
| Access type: | open access |
| Associated institution: | Universidade Nova de Lisboa |
| Language: | English |
| Origin: | Repositório Institucional da UNL |
| Summary: | This thesis investigates how investors respond to ESG signals in mutual fund markets. The group analysis examines fund flows and performance in relation to ESG classifications, showing that sustainability ratings alone provide an incomplete picture of investor behavior. To address this, the individual analysis focuses on changes in ESG fund names, a clear labeling tool. Using a panel event-study approach with Morningstar and CRSP data, it examines flow patterns around ESG name changes. The results indicate significant flow responses following adoptions, suggesting that investors consider ESG labels beyond just the actual sustainability metrics. Overall, the study highlights the importance of ESG communication methods alongside formal ratings. |
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