Material Sustainability and Stock Return: Faith Is Not Enough

Posted: 2 Jun 2022

See all articles by Andrew A. King

Andrew A. King

Questrom School of Business- Boston University

Luca Berchicci

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Date Written: March 30, 2022

Abstract

Yoon and Serafeim (2022) provide a review of the history of materiality, a brief discussion of selected research, and a discourse on measurement noise. They do not address the results of our research, our critique of their analysis, or our evidence that the main finding of Khan, Yoon, and Serafeim (2016) is a statistical artifact. In total, their response illustrates the danger of placing excessive faith in the findings from a single study.

Keywords: materiality, social and financial performance, research methods, epistemology, model uncertainty, replication.

JEL Classification: Q51, D22, L25, C11, C18

Suggested Citation

King, Andrew A. and Berchicci, Luca, Material Sustainability and Stock Return: Faith Is Not Enough (March 30, 2022). Available at SSRN: https://ssrn.com/abstract=4119617

Andrew A. King (Contact Author)

Questrom School of Business- Boston University ( email )

Boston, MA 02215
United States

Luca Berchicci

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

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