Annual Conference

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Sustainable and Green Finance

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May 2023

The Rise of Corporate Social Responsibility: When Firms Set Personalized Prices for Network Goods

Yan XIONG, Liyan YANG
We propose a theory of corporate social responsibility by linking it to the firm’s product markets. The firm’s product exhibits network effects in the sense that the product’s value to each consumer increases with the number of consumers. Moreover, with the technology development, the firm can...
Keywords: Corporate social responsibility, network effect, personalized pricing, coordination
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Annual Conference

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Sustainable and Green Finance

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May 2023

Climate Change Salience and International Equity Returns

David PARSLEY, Helen POPPER
In this study, we examine climate change salience risk in international equity markets. We find that (1) exposure to a single, broad measure of climate change salience risk is pervasive; notably it arises regardless of firms’ greenhouse gas emissions, (2) the exposure is priced: a return discount ...
Keywords: Climate change risk, climate change salience, climate finance, carbon risk, global warming, climate
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Annual Conference

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Sustainable and Green Finance

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May 2023

The term structure of carbon premia

Dora XIA, Omar ZULAICA
This paper explores a carbon premium – the extra yield investors demand to buy bonds issued by firms with more greenhouse gas emissions – in the US corporate bond market. We analyse a carbon premium along two channels, via panel regression. One is the preference channel, under which the premium ...
Keywords: climate change, carbon emissions, corporate bond spread, term structure
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Annual Conference

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Household Finance

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May 2023

A Housing Portfolio Channel of QE Transmission

Alessandro REBUCCI , Daniel MARCEL TE KAAT, Chang MA , Dominik BODDIN
We document and quantify a housing portfolio channel of quantitative easing (QE) transmission. We identify this channel using household-level and regional data from Germany. We show that QE induces households with larger initial bond holdings to rebalance more their portfolios toward housing and par...
Keywords: Asset Market Segmentation, Buy-to-let, Germany, Housing Returns, Household Portfolio Rebalancing, Qu
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Annual Conference

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Household Finance, Senior Fellows/Fellows

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May 2023

How Costly Are Cultural Biases? Evidence from FinTech

Pulak GHOSH, Francesco DACUNTO, Alberto G. ROSSI, Rajiv JAIN
We propose a revealed-preferences approach to assess the costs of cultural biases faced by discriminators by comparing peer-to-peer loans the same lenders make alone and after observing suggestions by an automated robo-advisor in India. Discrimination across religions and against low-caste borrowers...
Keywords: Trust, Social Capital, Discrimination, Cultural Norms, Subjective Expectations, Robo-Advising, FinTe
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