Post by Schulich School of Business - York University

📈🌱 Can ESG ratings move markets? New Schulich research published in Management Science finds that investors who rely on ESG ratings without understanding how they are constructed may contribute to temporary stock mispricing and market inefficiencies. Co-authored by Assistant Professor of Finance Aleksandra Rzeznik, the study found that some retail investors misinterpreted methodology-driven ESG rating changes as signals of improved or declining company performance. The findings highlight the importance of transparency, comparability and clearer disclosures in ESG rating methodologies as sustainable investing continues to grow. 🔗 Read more: https://lnkd.in/gMidqbPM #SchulichInTheNews #SchulichResearch #ESG #Finance #SustainableFinance #CapitalMarkets