@techreport{dd2abaeffa2a439da8397f414e77a20b,
title = "The Sustainable Finance Disclosure Regulation: Voluntary Signaling or Mandatory Disclosure?",
abstract = "We study the consequences of mandatory sustainable finance disclosure regulation (SFDR) for the money flows and investment behavior of mutual funds. We find that EU-regulated funds significantly improve the ESG profile of their investments relative to US mutual funds, holding for both the retail and the institutional funds. Taken together, we find that SFDR enables mutual funds to attract capital by signaling commitments to sustainable investments.",
keywords = "mandatory disclosure, signaling, Investor preferences, mutual funds, sustainable finance",
author = "Lara Spaans and Jeroen Derwall and Joop Huij and Kees Koedijk",
year = "2024",
month = mar,
day = "4",
language = "English",
series = "CEPR Discussion Papers",
publisher = "Center for Economic Policy Research (CEPR)",
number = "18881",
address = "United Kingdom",
type = "WorkingPaper",
institution = "Center for Economic Policy Research (CEPR)",
}