Demand for ESG
Integrity signals
Registry
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Each is checked against this paper’s own text: does it say what the citing paper says it does?
Baker, Egan, and Sarkar (2022) and Barber, Morse, and Yasuda (2021) provide evidence that some people are willing to give up returns to invest according to their preferences.
“As discussed earlier, Baker, Egan, and Sarkar (2022) and Barber, Morse, and Yasuda (2021) provide evidence that some people are willing to give up returns to invest according to their preferences.”
From Presidential Address: Sustainable Finance and ESG Issues— <i>Value</i> versus <i>Values</i> (2023) · cites this paper as Baker, Egan, and Sarkar (2022)
Cited by
Sorted by citations
Presidential Address: Sustainable Finance and ESG Issues— <i>Value</i> versus <i>Values</i>
STARKS, L. T. (2023) · The Journal of Finance · doi:10.1111/jofi.13255 · Cited by 474 · see citing works
Four Facts About ESG Beliefs and Investor Portfolios
Giglio, S., Maggiori, M., Stroebel, J., Tan, Z., Utkus, S., & Xu, X. (2023) · doi:10.3386/w31114 · Cited by 109 · see citing works
Lei, X., & Yu, J. (2023) · Corporate Social Responsibility and Environmental Management · doi:10.1002/csr.2630 · Cited by 120 · see citing works
Gorovaia, N., & Makrominas, M. (2024) · European Financial Management · doi:10.1111/eufm.12509 · Cited by 71 · see citing works
Shareholder Activism on Climate Change: Evolution, Determinants, and Consequences
Diaz‐Rainey, I., Griffin, P. A., Lont, D., Mateo‐Márquez, A. J., & Zamora-Ramírez, C. (2023) · Journal of Business Ethics · doi:10.1007/s10551-023-05486-x · Cited by 45 · see citing works
“…and test results are also largely consistent with recent studies finding that ethical investors accept lower returns when firms incorporate (or are reasonably expected to incorporate) the negative externalities of climate change into their operations (Baker et al., 2022; Hong & Shore, 2023).”
InfluentialMigliavacca, A. (2024) · Journal of International Accounting, Auditing and Taxation · doi:10.1016/j.intaccaudtax.2024.100620 · Cited by 29
Pelster, M., Horn, M., & Oehler, A. (2024) · Journal of Climate Finance · doi:10.1016/j.jclimf.2024.100045 · Cited by 19 · see citing works
Climate CapitalistsPreprint
Gormsen, N. J., Huber, K., & Oh, S. S. (2023) · SSRN Electronic Journal · doi:10.2139/ssrn.4366445 · Cited by 1 · see citing works
Müller, R., Spengel, C., & Weck, S. (2021) · Social Science Research Network · doi:10.2139/ssrn.3949860 · Cited by 11
“As Baker et al. (2022) document, investors are willing to pay higher prices for and accept lower returns from ESG-oriented equity instruments.”
Müller, R., Spengel, C., & Weck, S. (2024) · Contemporary Accounting Research · doi:10.1111/1911-3846.12965 · Cited by 10 · see citing works
Sisaye, S., & Birnberg, J. G. (2024) · Journal of Business and Socio-economic Development · doi:10.1108/jbsed-03-2023-0020 · Cited by 9
“Available data to potential users are collected through various methods ranging from financial market studies (Baker et al ., 2022), direct surveys of user behavior (Arnold et al ., 2022) and laboratory experiments (Martin and Moser, 2016).”
MethodValue creation and sustainable business model: are ESG ratings a matter of class?
Castellano, R., Cini, F., & Ferrari, A. (2024) · Annals of Operations Research · doi:10.1007/s10479-024-05859-z · Cited by 9 · see citing works
Is Corporate Social Responsibility a Must or a Plus? The Role of National Culture
Wang, L., & Li, S.-M. (2025) · International Review of Economics & Finance · doi:10.1016/j.iref.2025.104181 · Cited by 8 · see citing works
“As Baker et al. (2022) indicate, some investors are willing to pay a premium for ESG if they place a high value on impact, which is more likely to be the case in SSC-oriented cultural contexts.”
ESG Perceptions: Investigating Investor Motivations and Characteristics
Zhang, Y. (2024) · Financial Services Review · doi:10.61190/fsr.v32i2.3591 · Cited by 7
“Investors are generally prepared to pay a higher fee annually for funds with an ESG mandate over identical funds lacking such a mandate, indicating that investors anticipate ESG investments to generate competitive returns (Baker et al., 2022).”
BackgroundInfluentialBeyond Green Labels: Assessing Mutual Funds’ ESG Commitments through Large Language Models
Wood, K., Pyun, C., & Pham, H. M. (2025) · Finance Research Letters · doi:10.1016/j.frl.2024.106713 · Cited by 6 · see citing works
Renaming with purpose: Investor response and fund manager behaviour after fund ESG renaming
Gibbon, K., Derwall, J., Gerritsen, D. F., & Koedijk, K. C. G. (2025) · Journal of International Money and Finance · doi:10.1016/j.jimonfin.2024.103263 · Cited by 11 · see citing works
Li, J., Qin, X., & Lin, Y.-E. (2024) · Business & Society · doi:10.1177/00076503241254544 · Cited by 6 · see citing works
“They are willing to sacrifice some return for sustainable investment (Baker et al., 2022).”
Do Financial Advisors Charge Sustainable Investors a Premium?
Laudi, M., Smeets, P., & Weitzel, U. (2026) · Management Sciences · doi:10.1287/mnsc.2025.00232 · Cited by 5 · see citing works
Attention, ESG, and Retail Investor Stock Holdings
Horn, M., & Oehler, A. (2025) · Journal of Behavorial Finance · doi:10.1080/15427560.2025.2522415 · Cited by 5 · see citing works
“Investors have been observed to be willing to accept lower returns in order to obtain non-pecuniary benefits of ESG investments (M. Baker, Egan, and Sarkar 2022; Barber, Morse, and Yasuda 2021; Bauer, Ruof, and Smeets 2021; Gutsche and Ziegler 2019).”
Ekawati, E., Napoh, C. F. A., Dhiru, T. F., & Kusuma, I. W. (2024) · Investment Management & Financial Innovations · doi:10.21511/imfi.22(1).2025.05 · Cited by 5 · see citing works
“Their expectations are close to risk-adjusted market returns with a certain willingness to accept lower returns (Barber et al., 2021; Baker et al., 2022).”
A Closer Look at the Biodiversity PremiumPreprint
Coqueret, G., & Giroux, T. (2023) · Social Science Research Network · doi:10.2139/ssrn.4489550 · Cited by 5 · see citing works
From Pro-environmental Behavior to ESG Fund Investing: Evidence from account-level data in ChinaPreprint
Qian, S., You, H., & Wan, D. (2023) · Social Science Research Network · doi:10.2139/ssrn.4636108 · Cited by 5 · see citing works
How Do ESG Ratings Impact the Valuation of the Largest Companies in Southern Europe?
Zairis, G., Apostolopoulos, N., & Liargovas, P. (2025) · Sustainability · doi:10.3390/su172210347 · Cited by 3 · see citing works
Khan, A., Li, S.-J., Alomair, A., & Naim, A. A. A. (2025) · International Review of Economics & Finance · doi:10.1016/j.iref.2025.104718 · Cited by 3 · see citing works
Household Climate Finance: Theory and Survey Data on Safe and Risky Green AssetsPreprint
Aron-Dine, S., Beutel, J., Piazzesi, M., & Schneider, M. (2024) · Social Science Research Network · doi:10.2139/ssrn.4881194 · Cited by 3 · see citing works
“Moreover, several studies find that investors are willing to give up average returns to invest according to their preferences (Barber, Morse and Yasuda 2021; Baker, Egan and Sarkar 2022b). Surveys which directly ask investors about their beliefs and motives, are an especially attractive approach in a changing investme…”
BackgroundResultInfluentialESG risk and returns implied by demand-based asset pricing models
Zhang, C., Li, X., Tamoni, A., van Beek, M., & Ang, A. (2024) · Journal of Asset Management · doi:10.1057/s41260-024-00354-3 · Cited by 3 · see citing works
Why Do Index Funds Have Market Power? Quantifying Frictions in the Index Fund Market
Brown, Z., Egan, M., Jeon, J., Jin, C., & Wu, A. A. (2023) · National Bureau of Economic Research · doi:10.3386/w31778 · Cited by 4 · see citing works
Self-citationEnvironmental preferences and sector valuations
Jourde, T., & Stalla‐Bourdillon, A. (2024) · Review of World Economics · doi:10.1007/s10290-024-00537-5 · Cited by 4 · see citing works
“Papers also report massive inflows into sustainable funds (e.g., GSIA, 2020; Hartzmark & Sussman, 2019) despite poor performance (El Ghoul & Karoui, 2017) and show that investors are willing to pay more to invest in a fund with an ESG mandate (Baker et al., 2022).”
Decoding ESG disclosure: unveiling the role of catering incentives
Lee, K. F. (2024) · International Journal of Disclosure and Governance · doi:10.1057/s41310-024-00245-4 · Cited by 1 · see citing works
“Using a revealed preference approach, Baker et al. (2022) quantified the premium that shareholders place on ESG at 20 basis points per annum on average for an investment in a fund with an ESG mandate versus an identical mutual fund without an ESG mandate.”
Plan Menus, Retirement Portfolios, and Investors' WelfarePreprint
Loseto, M. (2023) · SSRN Electronic Journal · doi:10.2139/ssrn.4623276 · Cited by 2 · see citing works
Is the environmental activism of mutual funds effective?
González, L. A. O., Crespo, D. A., Santomil, P. D., & Cunill, O. M. (2026) · The Journal of Risk Finance · doi:10.1108/jrf-05-2025-0239 · Cited by 1 · see citing works
Pressure‐Driven Cash Holdings Under Biodiversity Risk
Wang, K., Xu, T., & Yang, M. (2026) · European Financial Management · doi:10.1111/eufm.70064 · Cited by 1 · see citing works
Determinants of Sustainable Finance Flows: A Literature Review
Cilekoglu, A. A., & Yılmaz, F. (2026) · Journal of economic surveys (Print) · doi:10.1111/joes.70097 · Cited by 1 · see citing works
Drivers of Nature‐Related Investment Strategies Among Institutional Investors
Olofsson, E. (2026) · Business Strategy and the Environment · doi:10.1002/bse.70598 · Cited by 1 · see citing works
“The future of capitalism”: A 50‐year retrospective
Dent, E. B., Parnell, J. A., Martin, W., & Lodge, G. (2025) · Business and Society Review · doi:10.1111/basr.70006 · Cited by 1
Hidayati, N., & Nainggolan, Y. (2024) · International Journal of Current Science Research and Review · doi:10.47191/ijcsrr/v7-i5-83 · Cited by 1
“Following Baker et al. (2022), ESG is described not as a tradeoff in investing, investors believe that today’s prices do not yet reflect the financial benefits of corporate ESG and the tailwind of the ESG-concerned investors.”
BackgroundInfluentialBrown Capital (Re)AllocationPreprint
Darmouni, O., & Zhang, Y. (2024) · Social Science Research Network · doi:10.2139/ssrn.4796331 · Cited by 1 · see citing works
Who Cares About Investing Responsibly? Attitudes and Financial DecisionsPreprint
Montagnoli, A., & Taylor, K. (2024) · Social Science Research Network · doi:10.2139/ssrn.4811767 · Cited by 1 · see citing works
Dai, J.-W., & Yin, X. (2023) · Social Science Research Network · doi:10.2139/ssrn.4642267 · Cited by 1 · see citing works
Identifying Funds’ Sustainability Goals with AI: Financial, Categorical Morality, and ImpactPreprint
Yang, K., & Yasuda, A. (2023) · Social Science Research Network · doi:10.2139/ssrn.4637264 · Cited by 1 · see citing works
Machine-learning about ESG preferences: Evidence from fund flows
Aragon, G. O., & Chen, S. (2026) · Journal of Financial Economics · doi:10.1016/j.jfineco.2026.104361
The Impact of Stock Liquidity on Corporate ESG : Which Industry Benefits?
Wang, Q.-J., & Chang, C.-P. (2026) · Corporate Social Responsibility and Environmental Management · doi:10.1002/csr.71037
Ren, H., Li, Y.-L., Wang, F., Chen, Y.-L., & Kangalakova, D. (2026) · Sustainability · doi:10.3390/su18199900
Yu, E., Luu, B. V., Chai, D. H., & Tanda, A. (2026) · Business Strategy and the Environment · doi:10.1002/bse.71218
Sustainable Investing and Market GovernancePreprint
Starmans, J., Gupta, D., & Chen, A. (2026) · Social Science Research Network · doi:10.2139/ssrn.5025025
Are ESG funds greenwashing? An analysis of ESG ratings and ESG rating momentum
Wieckert, J. (2026) · Journal of Sustainable Finance & Investment · doi:10.1080/20430795.2026.2658576
Investigating the heterogeneity of ESG investors: evidence from emerging economies
Nair, B. A. V., Jayachandran, A., Sasidharan, A., Thomás, D., & Mathew, V. (2026) · Sustainability Accounting, Management and Policy Journal · doi:10.1108/sampj-03-2025-0390
Basri, B., Irnandas, M., & Herianti, H. (2025) · Jurnal Akuntansi dan Keuangan · doi:10.23960/jak.v30i1.3542
“These variations underscore how sector-specific factors influence stock valuation patterns in the capital market (Baker, Egan, & Sarkar, 2022).”
Timoshanko, A. (2025) · Journal of Corporate Law Studies · doi:10.1080/14735970.2025.2496028
NGO Activism: Exposure vs. Influence
Fioretti, M., Saint-Jean, V., & Smith, S. C. (2024) · doi:10.48550/arxiv.2411.06875
“Shareholders can be seen as primary proponent of firm’s social values (e.g., Naaraayanan et al. , 2021, Baker et al. , 2022).”
Green values and transparency of household savings: a survey
Merli, M., Pulikova, M., & Roger, T. (2024) · European Journal of Finance · doi:10.1080/1351847x.2024.2393636
“…years, a substantial body of academic literature has concentrated on investors’ preferences and willingness to pay (WTP) for responsible investments (Baker, Egan, and Sarkar 2022; Filippini, Leippold, and Wekhof 2024; Gutsche and Ziegler 2019; Hartzmark and Sussman 2019; Heeb et al. 2023; Riedl…”
Cagnazzo, A. (2024) · Social Science Research Network · doi:10.2139/ssrn.4682148
ESG and Mutual Fund CompetitionPreprint
Dumitrescu, A., & Gil-Bazo, J. (2024) · Social Science Research Network · doi:10.2139/ssrn.4887875
Dirty Money. The Impact of Negative ESG News Sentiment on Dividend ConsumptionPreprint
Laudi, M., Pauls, T., & Smeets, P. (2023) · Social Science Research Network · doi:10.2139/ssrn.4574351
Unpackaging ESG: Evidence from 401(k) InvestmentPreprint
Tian, J., & Shi, J.-H. (2023) · Social Science Research Network · doi:10.2139/ssrn.4637117
Trade, Voting, and ESG Policies: Theory and Evidence
Friedman, D., Duffy, J., Rabanal, J. P., & Rud, O. A. (2022) · Social Science Research Network · doi:10.2139/ssrn.4306156
“Baker et al. (2022) estimate a model of investor demand for index funds and find that the value that investors place on ESG policies has increased nearly threefold over from 9 basis points (bp) in 2019 to 28 bp in 2022.”
Background
- Authors
- Baker, M., Egan, M., & Sarkar, S.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2022-12
- OpenAlex
- W4310713231
- Cited by
- 55
- References
- 0
- Citations by year
- 2026: 5 · 2025: 3 · 2024: 24 · 2023: 17 · 2022: 3 · 2021: 2 · 2020: 1
- Type
- report
- Language
- en
- Open access
- closed
- Locations
- National Bureau of Economic Research (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
- Social Sciences › Economics, Econometrics and Finance › Finance › Sustainable Finance and Green Bonds
- Social Sciences › Business, Management and Accounting › Marketing › Environmental Sustainability in Business
- Keywords
- ESG, environmental, social and governance criteria, corporate sustainability
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