Trade, Voting, and ESG Policies: Theory and Evidence by Daniel Friedman

Join us for this week's event in the Behavioural, Experimental and Development Economics Seminar Series, Autumn Term 2024

Join Daniel Friedman, as they present their research on Trade, Voting, and ESG Policies: Theory and Evidence.

Abstract

We model the interaction between shareholder trading and voting on an ESG policy given different sets of preferences, and test equilibrium predictions of the model in the laboratory. The model suggests, and laboratory results confirm, that low policy costs favor policy adoption and that intermediate costs lead to a lower rate of policy adoption under dispersed preferences than under polarized preferences.  Observed share prices are higher than equilibrium predictions when the policy is adopted. This suggests that incumbent shareholders' capital loss when adopting ESG policies may be less than anticipated.

This seminar will be held in the Economics Common Room on Wednesday 30 October, at 11.00am. This event is open to all levels of study and is also open to the public. To register your place, please contact the seminar organisers.

This event is part of the Behavioural, Experimental, and Development Economics Research Seminar Series.