Spanning the divide between academia and practice...


Recent Insights

January 19, 2021

The problem humanity faces is not climate change per se – it is providing reliable energy to a growing world economy and a global population projected to hit 10 billion

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January 14, 2021

With all the talk about Bitcoin, at Cornell Capital Group we thought it is time to delve into the data. The data sample employed in the analysis consists of the

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January 4, 2021

Expectations and Investment Returns           To provide perspective on investing in 2021, at Cornell Capital Group we start with a fundamental concept from finance theory. The theory states that if a

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December 30, 2020

At a conference on quantum computing and finance on December 10, 2020, William Zeng, head of quantum research at Goldman Sachs, told the audience that quantum computing could have a

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December 23, 2020

Based on the experience, popping bubbles are often associated with the complete collapse of companies like eToys, or Webvan, but that is as much the exception as 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implies the corporate objective of maximizing shareholder value, which lies at the core of much of finance theory, is outdated and needs to be replaced by a more comprehensive stakeholder model.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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