Although sustainable investing is becoming a mainstream ambition, investors disagree on how to best measure corporate sustainability performance (CSP). Environmental, Social, and Governance (ESG) ratings are the dominant CSP metric in the market, but they focus on financial materiality rather...

We show theoretically and empirically that executives are paid less for their own firm’s performance and more for their rivals’ performance if an industry’s firms are more commonly owned by the same set of investors. Higher common ownership also leads to higher unconditional total pay. We...

The study examines the causal links between earnings quality and corporate social responsibility (CSR) performance using a large sample of United States (US) firms from 1992 to 2013. We first find that the association between earnings quality and CSR performance is positive and significant. We...

We propose a simple and intuitive measure of annualized excess return of investments in private equity (PE) funds, as well as in similar vehicles that hold hard-to-values assets. Our ‘Direct Alpha’ method is well-founded theoretically and dominates the existing approaches to convert fund...

This paper produces multiple fund-of-funds’ portfolios based on sorting and a novel non-parametric approach to lend in-depth insights into the extent hedge fund returns display higher order (non-linear) persistence patterns. By exploiting monthly data from Hedge Fund Research Database between...

B&B strategies are increasingly popular, with past studies showing them to achieve superior returns. The question of how exactly B&B strategies create value is, however, still a "black box". Relying on a unique and proprietary sample of 161 B&B buyouts with valuation details on related add-on...

This chapter is both a primer on estimation methods for assessing risk and return in private equity and a survey of the empirical literature. Most private equity investments are made by private funds that raise capital from institutions and wealthy individuals. Performance data is collected...

The use of futures to track BTC may introduce a difference between the return of the ETF and that of its underlying benchmark. The standard deviation of this difference – the so-called “tracking error” – is the typical measure of performance for an ETF relative to its index and can be of...