Professor Laura Starks Awarded Prize for Outstanding Research in Sustainable Finance

Professor Starks received the 2021 Moskowitz Prize, which recognizes academic papers with exceptional relevance to ESG investment practitioners.

ChicagoLaura T. Starks, of the McCombs School of Business, University of Texas at Austin, has been honored with the 2021 Moskowitz Prize. Professor Starks’s coauthored paper, “Corporate ESG Profiles and Investor Horizons,” was selected from a field of over 170 submissions.

Professor Starks is one of the leading authorities on ESG investing. Her research is at the forefront of companies’ and investors’ growing focus on sustainable and responsible finance.

Among its key findings, Professor Starks’s paper notes that long-term investors put more money into firms with better environmental, social, and corporate governance (ESG) metrics than short-term investors. Long-term investors are also more patient with these companies, even when companies have poor short-term returns or earnings shortfalls. The paper’s findings suggest that corporate leaders may have strong incentives to pursue ESG initiatives, as firms with better ESG profiles tend to attract longer-term investors and reduce volatility.

“Laura is one of the leading authorities on ESG investing,” said John Simon, who heads Cornerstone Research’s investments group. “Investor attention to ESG continues to grow and many companies now consider sustainable and responsible finance to be integral to their business practices. Laura is at the forefront of these developments. On behalf of our firm, I congratulate her on this prestigious award.”