Biography

Pedro Matos is the Cooper Bicentennial Chair Professor of Business Administration (Finance) at the University of Virginia Darden School of Business. His research focuses on the growing importance of institutional investors worldwide. His work has been published in top academic journals and featured in the press (including in The Economist, Financial Times, The New York Times, Bloomberg) and cited by the U.S. SEC, European Commission and other regulators. Matos is a research associate at the European Corporate Governance Institute (ECGI), Vice-Chair of the UN-sponsored Principles for Responsible Investment (PRI) Academic Network Advisory Committee and his work has received numerous research grants and awards. He previously taught at the University of Southern California and holds a B.A. in Economics from Nova University and a Ph.D. in Finance from INSEAD.

Abstract

We introduce a novel measure of revenues from green products and services for publicly listed firms worldwide that is not spanned by prior sustainability metrics used in the literature. We show that green revenues grew at an accelerated pace after the Paris Agreement. This growth has been driven by innovative US companies converting green patents into green revenues, as well as by firms with higher sustainability-focused institutional ownership before the Paris Agreement. Furthermore, we examine the stock returns of firms with green revenues and find modest evidence of a green alpha in the post-Paris period, primarily concentrated in US stocks.

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