test_moissonnage_selune
type: Agent

The price of unsustainability: An experiment with professional private equity investors
type: Distribution
access URL: https://hal.science/hal-00757203
format: HTML
issued: 2026-06-04T03:56:22.594525
modified: 2026-06-04T03:56:22.485268

The price of unsustainability: An experiment with professional private equity investors
type: Dataset
contact point: Organization
  fn: CCSD
keyword: equity-financing
keyword: preprints-working-papers-
keyword: jel-m---business-administration-and-business-economics--marketing--accounting--personnel-economi
keyword: qfincpquantitative-finance-q-fincomputational-finance-q-fincp
keyword: infoeu-reposemanticspreprint
keyword: corporate-sustainability
keyword: jel-d---microeconomicsdd4---market-structure-pricing-and-designdd4d44---auctions
keyword: private-equity
keyword: field-experiment
keyword: firm-valuation
landing page: https://hal.science/hal-00757203
description: This paper sheds light on the impact sustainable and unsustainable corporate practices have on equity financing. We present a unique framed field experiment in which professional private equity investors competed in closed auctions to acquire fictive firms. We hence observe that corporate non-financial performance impacts firm valuation and investment decision and we quantify to which extent. Main result is an asymmetric effect, entrepreneurs having more to lose from unsustainable practices than to gain from sustainable ones. Our findings are discussed in terms of practical implications for both investors and firm managers.
issued: 2026-06-04T03:56:22.565350
language: en
modified: 2026-06-04T03:56:22.565357