Finance: The ESG Home Bias

Dr Moqi Groen-Xu, Queen Mary University of London

'The ESG Home Bias'
Wednesday 1 December, 1pm - 2.15pm
Zoom online seminar

Register now


In a sample of 7,209 environmental, social, and governance (ESG) incidents involving 63 incident countries and more than 6,000 firms, we show that abnormal event returns exhibit an “ESG home bias”: they are less negative (-0.2%) for foreign compared to domestic incidents. Consistent with geographic heterogeneity in investor preferences, the domestic-foreign return gap is (i) less pronounced for firms with a larger shareholder base from the incident country and (ii) more for firms headquartered in more patriotic countries, whereas (iii) returns are generally more negative in more environmentally friendly countries. Taken together, our results suggest that shareholder preferences for ESG externalities are not universal and are characterized by home bias.  


Dr Moqi Groen-Xu is a Senior Lecturer for Finance at School of Economics and Finance at Queen Mary University of London. She specialises in empirical work on Corporate Finance and Corporate Governance. Currently, Dr Groen-Xu mainly works on voting participation, shareholder rights, and long-term CEO incentives. Her work has been published in Journals such as the Review of Financial Studies, Journal of Corporate Finance and the Journal of Financial and Quantitative Analysis. Her current work has been covered by academic outlets such as the Harvard Law and Governance blog, but also general interest media such as the Financial Times. Dr Groen-Xu joined Queen Mary in 2020 and worked previously at the LSE. She has a PhD from INSEAD, France. Prior to her academic career, she worked as a consultant with McKinsey. Dr Groen-Xu has two daughters, born 2015 and 2017. She blogs on and tweets @moqixu.  

Further information:

First published: 24 November 2021