Seminar (Dept. of Finance)

Title: Green Preference, Green Investment

Speaker: Luo Yan, Professor, Fudan University

Time: 10:00-11:30, Dec 29, 2023(Friday)

Venue: Room 1008, Mingde Business Building

Language: English

ABSTRACT:

Based on Alibaba's renowned green initiative, the Ant Forest program, we develop a novel measure to reveal an individual investor’ non-pecuniary green preference and link it to her investment actions. We present compelling evidence that supports non- financial incentives for investing in “green” mutual funds while divesting from “brown” funds. Concerns over climate physical and regulatory risks further reinforce this influence. Individuals’ green preferences do not lead to financial gains from trading. Moreover, we mitigate the endogeneity issue by employing the development of local subway network as a source of variations in green preferences.