Spanning the divide between academia and practice...


Recent Insights

November 23, 2020

Can ESG investors have their cake and eat it too? Can they invest in responsible companies that are tackling issues like climate change and diversity and simultaneously earn higher rates

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November 17, 2020

Cornell Capital Group senior advisor Prof. Bradford Cornell breaksdown the fundamental arithmeitc of the global transition to renewable energy.

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November 11, 2020

CCG Climate Change Plan for California and the United States There is little that California, or even the United States, can do directly to alter the trajectory of climate change.

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October 28, 2020

In a famous editorial published in the Wall Street Journal, Warren Buffett and Jamie Dimon, the chairmen of Berkshire Hathaway and JP Morgan respectively, took the stock market to task

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October 12, 2020

Most stock valuation chatter on the internet focuses on companies with great growth opportunities like Zoom, Wayfair and Peloton or well known companies whose stocks have outperformed like Apple and

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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implies the corporate objective of maximizing shareholder value, which lies at the core of much of finance theory, is outdated and needs to be replaced by a more comprehensive stakeholder model.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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