Greenwashing with Style: The Effect of ESG-Related Fund Name Changes on Fund Flows


This paper examines whether mutual funds engage in greenwashing by changing their names to take advantage of the socially responsible investing styles. We study 2,292 ESG-related fund name changes and their effects on fund inflows and portfolio holdings. Following inclusion of ESG term in their name, mutual funds experience an average cumulative abnormal inflow of 13.87% over the one year period. On average, post-name-change funds’ turnover increases and ESG metrics improve, suggesting that funds deliver on their new label’s promise. Retail investors direct abnormal flows to ESG-rebranded funds irrespective of ESG score improvements, which makes them susceptible to potential greenwashing.

Additional Informationsunspecified
Commencement Dateunspecified
Contributors Orlov, Prof. PhD Vitaly (Project Worker); Cochardt, Alexander (Project Worker) & Heller, Stephan (Project Worker)
Datestamp 11 Aug 2022 12:03
Id 248181
Project Range HSG Internal
Project Status ongoing
Project Type fundamental research project
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