Why don't asset managers accelerate ESG investing? A sentiment analysis based on 13,000 messages from finance professionals

Abstract

Mitigating climate change effects requires investors (and their proxies, fund managers) to shift their business‐as‐usual strategies. This article analyzes Environmental, Social, and Governance (ESG) investing behavior through more than 13,000 messages exchanged by finance professionals from 2017 to 2020. There is a consensus that low and high ESG firms' discrimination is a necessary but not sufficient condition for ESG investing. Moreover, it is one thing for fund managers to claim that they are integrating ESG factors in their portfolios and another to do it properly. The restriction of the strategy space, internal and external transaction costs, and data quality are still viewed as overwhelming obstacles for seamlessly integrating ESG into financial portfolios. Sentiment analysis indicates that asset managers hold a negative view of ESG investing, surprising as ethical investing is becoming increasingly common. Unlocking the potential positive externalities from ESG investing may require regulators and investors' actions to improve the quality of information disclosure and pressure fund managers into incorporating nonfinancial criteria in their investment models.

Economic and legal approaches to the humanization of FinTech in the economy of artificial intelligence through the integration of blockchain into ESG Finance

“…Based on the research materials of Chang et al (2021), Zeidan (2022), which indicate the complexity, as well as the contradictory nature of market trends in the field of financial automation, this article puts forward the H 2 hypothesis that the spread of blockchain technologies in society makes a limited (moderate) contribution to the development of ESG finance. This means that the favorable influence of market factors, which consist in the formation of the economy of artificial intelligence and the spread of advanced technologies, is not sufficient for the development of FinTech.…”

How does stakeholder engagement through environmental, social, and governance affect eco‐efficiency and profitability efficiency? Zooming into Apple Inc.'s counterparts

“…Some scholars argue that a firm's capabilities drive ESG activities (Bénabou & Tirole, 2010). Zeidan (2022) finds that asset managers hold a negative view of ESG investing. Borghesi et al (2014) observe that company managers engage in ESG spending actively to improve their own utilities, rather than with shareholders in mind.…”

“…However, an inverse causal relationship has been found between ESG and firm performance (Gillan et al, 2021). Some scholars argue that ESG affects firm performance (Albuquerque et al, 2019;Antonioli et al, 2022;Fatemi et al, 2015;Hasan et al, 2022;Tang & Zhang, 2020), whereas others contend that a company's capabilities influence the implementation of ESG activities (Bénabou & Tirole, 2010;Borghesi et al, 2014;Mahmoudian & Jermias, 2022;Zeidan, 2022). The direction that companies should take to improve their overall firm efficiency level remains unclear.…”

Interactive effects of brand reputation and ESG on green bond issues: A sustainable development perspective

“…In fact, ESG integration among asset managers is not a smooth path. Zeidan (2022) examines the challenges of ESG investing and concludes that restriction of the strategy space, internal and external transaction costs, and data quality are overwhelming obstacles for integrating ESG into their portfolios. To look for some good practice of ESG integration, northern Europe is a good place to consider.…”