The Leibniz Institute SAFE organizes a brown bag seminar on
Individual investors’ trading and ESG company profiles
Virginia Gianinazzi (Nova School of Business and Economics)
Abstract: How do retail investors incorporate ESG considerations in their portfolios? We exploit granular data on security transactions and holdings from a large Portuguese bank over 20 years to analyze preferences for sustainability among retail investors. We investigate how ESG characteristics affect investors’ sensitivity to past fund performance, both in terms of buy and sell decisions. We then study how ESG portfolio choices differ by political affiliation (inferred from zip code) and by exposure to adverse climatic events.
