Momentum is arguably the most well-known trading strategy. A simple strategy of buying stocks that have done well over the past 6 months (“winners”), and shorting stocks that have done badly (“losers”), earns a 1%/month return over the next 6 months. While other trading strategies stop being profitable once they have been discovered (because investors start exploiting …
Does corporate social responsibility (“CSR”) improve firm value? When companies make decisions, should they care only about shareholders or should they take other stakeholders (e.g. employees, customers, the environment) into account? This is a decades-old debate, but despite many cogent views on both sides, there’s surprisingly little hard evidence. In 1970, Milton Friedman famously wrote …
Does corporate social responsibility improve firm value? Read More »