In their seminal Journal of Finance article, Miller, Muthuswamy, and Whaley (MMW) [1994] document that the observed mean reversion of changes in the basis of cash and stock index futures prices is likely illusory. MMW use a simple time-series model to suggest that the apparent mean-reversion in...

This paper examines the impact of ESG ratings on a firm's cost of equity (COE) and challenges the assumption that higher ESG ratings always lead to a reduction in equity costs. While previous research suggests that firms can benefit from improved ESG ratings, recent evidence raises doubts about...