Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316659 
Authors: 
Year of Publication: 
2024
Citation: 
[Journal:] Journal of Asset Management [ISSN:] 1479-179X [Volume:] 25 [Issue:] 2 [Publisher:] Palgrave Macmillan [Place:] London [Year:] 2024 [Pages:] 147-161
Publisher: 
Palgrave Macmillan, London
Abstract: 
Reducing portfolio carbon footprints (Exit) and voting in favor of climate-related shareholder proposals (Voice) are among the main actions that investors can take to promote an accelerated transition toward a low-carbon economy. This paper studies three important investor groups that can be instrumental in driving the transition and evaluates their Exit and Voice behavior. I find that the five largest asset managers perform poorly on Exit and Voice over the full sample period but improved on both in more recent years. Only a small fraction of signatories to sustainable investor initiatives are supportive of the transition. Counterintuitively, investors who perform poorly on Exit, perform well on Voice. Finally, I examine the financial consequences of employing Exit and Voice and find that Exit is positively related to risk-adjusted fund returns; however, this is not necessarily attributable to superior skill of fund managers.
Subjects: 
Exit
Voice
Mutual funds
Climate change
Transition
Fund performance
JEL: 
D22
G11
G23
Q51
Q54
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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