---
title: Mutual Funds and Pollution Events
url: https://www.ml-quant.com/papers/ssrn/5219194/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5219194
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5219194
featured: 2025-04-16
citations: unknown
topic: Portfolio & Allocation
---


# Mutual Funds and Pollution Events

Research indicates that fund managers in areas affected by chemical spills improve their ESG scores by shifting from low to high ESG stocks, suggesting social factors influence portfolio changes.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5219194
- Identifier: SSRN 5219194
- Released: 2025-04-16
- First featured: Quant Letter No. 93 (2025-04-16): https://www.ml-quant.com/issues/2025-04-16/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Portfolio & Allocation

## Related

- [Talk vs. Walk: Lessons from Silent Sustainable Investing of Mutual Funds](https://www.ml-quant.com/papers/ssrn/4602285/): Talk vs. Walk: The study finds that investors favor internal ESG labels over external sustainability ratings, significantly influencing fund flows, but high sustainability rating funds don't necessarily rebrand as ESG funds due to regulatory pressure and limited benefits.
- [Dynamic spillovers and investment strategies across artificial intelligence ETFs, artificial intelligence tokens, and green markets](https://www.ml-quant.com/papers/arxiv/2503.01148/): The study shows that AI ETFs and clean energy transmit risk, while AI tokens and green bonds receive risk, with diverse portfolios effectively reducing AI token investment risk.
- [Sustainable Fund Flows Comparison](https://www.ml-quant.com/papers/ssrn/4989575/): An analysis of over 23,000 equity mutual funds and ETFs reveals that self-declared sustainability statements in fund prospectuses drive retail and institutional fund flows more than external sustainability ratings.
- [Natural Disasters and Global Portfolio Flows](https://www.ml-quant.com/papers/ssrn/4849158/): The study shows that local natural disasters significantly influence global portfolio flows, leading to a reduction in net flows to equity mutual funds in affected countries, especially those with high climate risk exposure.
- [(Re)call of Duty: Mutual Fund Securities Lending and Proxy Voting](https://www.ml-quant.com/papers/ssrn/4757185/): Mutual funds, especially ESG funds, recall loaned shares before voting record dates, with recalled shares more likely to vote against management proposals, attracting higher fund flows without poor performance due to lost lending revenues.
- [ESG Investments as Luxury](https://www.ml-quant.com/papers/ssrn/4662146/): The article suggests that responsible investments are seen as luxury goods by investors, with unexpected wealth increasing the likelihood of investing in green stocks and responsible mutual funds.