Spanning the divide between academia and practice...

SMART INVESTING, FOCUSED ON AN EVER-CHANGING ECONOMIC LANDSCAPE.

Recent Insights


September 15, 2020

Fifty-Years on, four of the world's leading thinkers on Corporate Social Responsibility, including CCG Senior Advisor Professor Bradford Cornell, debate the merits of Milton Friedman's controversial 1970 New York Times

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September 14, 2020

On August 31st Tesla's latest bull run ended when the stock closed at an all-time of $498.50 per share. At that price, the market cap value of Tesla was $464

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September 2, 2020

Tesla has decided to sell more stock. The company announced that it will sell shares directly into the market to raise approximately $5 billion. The announcement brings to mind two

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August 24, 2020

            With the stock prices rising so dramatically for many companies on apparently so little news, we academics take a lot of kidding about the

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Featured Publication


 Using criteria based on environmental, social and governance (ESG) considerations has become an increasingly important aspect of investment decision making, particularly for high profile institutional investors.  As of 2019, sustainable assets under management were estimated to be $30 trillion worldwide.  The claim here is that the enthusiasm for ESG investing has been exaggerated for three reasons.  First, it is not clear what constitutes an ESG investment in the context of a complex, integrated economy.  Second, the impact on investment performance of a preference for ESG investments has not been sufficiently recognized outside academic circles.  Finally, many leading practitioners have stated that the importance of ESG considerations implies the corporate objective of maximizing shareholder value, which lies at the core of much of finance theory, is outdated and needs to be replaced by a more comprehensive stakeholder model.  The conclusion is that both the benefits of the traditional model and the dangers of a broader stakeholder model have not be adequately appreciated.         

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