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dc.contributor.authorCarlström, Erik
dc.contributor.authorHalden, Harald Nicolai
dc.date.accessioned2023-10-25T08:14:34Z
dc.date.available2023-10-25T08:14:34Z
dc.date.issued2023
dc.identifier.urihttps://hdl.handle.net/11250/3098586
dc.descriptionMasteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2023en_US
dc.description.abstractWe find that sustainable investors can be deceived to preform unsustainable investments when relying solely on ESG ratings. This is because companies can artificially inflate their ESG rating by promising future sustainable performance and not implement what they promise. We find that Refinitiv ESG rating are negatively correlated with our realized ESG rank, hurting the incentive of sustainable investors. We also find evidence that companies may be motivated to inflate their ESG ratings for capital cost reductions, creating a moral hazard. Using our ESG ranks to construct a portfolio does not create abnormal returns compared to Refinitiv’s rating, but results in better overall realized performance.en_US
dc.language.isoengen_US
dc.publisherHandelshøyskolen BIen_US
dc.subjectfinansen_US
dc.subjectfinanceen_US
dc.titleThe Impact of Inflated ESG Ratings on Socially Responsit>le lnuestment: An Analysis of Aduerse Selectionen_US
dc.typeMaster thesisen_US


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