A Managed Distribution Policy (MDP), where investments might be partially liquidated to increase investors' cash flows, can lower the value of manager's claim on asset payoffs. This is a direct transfer of wealth from the management to the shareholders, and might be adopted by managers to deter...

Green or socially responsible investing (SRI) refers to making investment decisions according to both financial and ethical criteria. This paper explores the effects of ethical screening on the investment decisions of firms that fail the screen (‘polluting’ firms) and on their decisions to...