Nickolay Gantchev, Mariassunta Giannetti, Rachel Li, 24 December 2019

There is growing consensus that as well as maximising shareholder value, listed companies should also take into account their shareholders’ environmental and social concerns. This column aims to shed light on whether market discipline can influence corporate behaviour. The findings indicate that through their sales and purchases, investors and customers can effectively impose their social preferences on firms, suggesting that market discipline indeed works.


CEPR Policy Research