• Graduate program
    • Why Tinbergen Institute?
    • Program Structure
    • Courses
    • Course Registration
    • Facilities
    • Admissions
    • Recent PhD Placements
  • Research
  • News
  • Events
    • Summer School
      • Behavioral Macro and Complexity
      • Econometrics and Data Science Methods for Business and Economics and Finance
      • Inequalities in Health and Healthcare
      • Introduction in Genome-Wide Data Analysis
      • Research on Productivity, Trade, and Growth
      • Summer School Business Data Science Program
    • Events Calendar
    • Tinbergen Institute Lectures
    • Annual Tinbergen Institute Conference
    • Events Archive
  • Summer School
  • Alumni
  • Times
Home | Events Archive | Environmental Externalities of Hedge Fund Activism

Environmental Externalities of Hedge Fund Activism

  • Series
    Erasmus Finance Seminars
  • Speaker(s)
    Pat Akey (University of Toronto, Canada)
  • Field
    Finance, Finance
  • Location
  • Date and time

    October 27, 2020
    15:30 - 16:45

Abstract: We study the effect of hedge fund activism on corporate environmental behaviors. Using plant-chemical level data from the EPA, we find that activism campaigns are as- sociated with

a 17 percent drop in emissions for chemicals at plants of targeted firms. Campaigns are associated with changes across a wide range of chemicals, including those emitted into the air, water, and

ground and those that are harmful to humans. Evidence suggests this change in environmental behavior stems from a drop in produc- tion rather than an increase in abatement activities. The net

effect on environmental efficiency is positive, with emissions falling by 8 percent per unit of output. Overall, our findings highlight the idea that the benefits of activism are not necessarily

confined to shareholders, but may also extend to other stakeholders (e.g., the local community) affected by firms’ emissions.

Link to the seminar:

Meeting ID: 925 5357 5048

For the passcode, please send an email to: stolting@ese.eur.nl