Jason Hsu and Vitali Kalesnik discuss which definitions of the quality factor are robust and have been shown to generate a return premium based on their Graham and Dodd award-winning article. Their findings suggest a link between the quality factor and ESG investing.
Kelly Shue’s research challenges the conventional wisdom that size is the fundamental determinant of volatility and offers investors a window on an under-appreciated driver of asset price movements.
ESG and SRI strategies filter companies on metrics that often measure intangibles. Alex Edmans finds that employee satisfaction does correlate with corporate outcomes, but the market is not yet adequately valuing this intangible.
David Laibson discusses his findings on what types of strategies work best to encourage investors to exert self-control, whether it may be saving more for retirement or resisting the impulse to sell into a falling market.