RepRisk

How do markets really react when negative business conduct events hit the news?

A new study using RepRisk and FIS data dives deep into the dynamics of short‑selling, borrowing rates, and stock returns across the US, Europe, and Japan.

Here’s what stood out:

🇺🇸 United States – Investors seem to move early: stocks show price declines before risk incidents fully escalate, paired with a clear uptick in short‑selling activity.
🇯🇵 Japan – Market reactions differ by incident type, with some coordinated shifts in lending markets.
🇪🇺 European Union – Regulatory guidance appears to dampen reactions, with only limited changes in lending dynamics.

Read the full paper: https://doi.org/10.1016/j.jbef.2026.101152

Huge congratulations to our colleague and quant specialist Tsuyoshi Iwata for publishing this paper and successfully completing his PhD! And many thanks to Tomasz Orpiszewski and Mark James Thompson at our research partner, the ZHAW Zürcher Hochschule für Angewandte Wissenschaften, for their great collaboration!


Journal of Behavioral and Experimental Finance

In our Greenwashing 2025 report, we found investors and regulators are demanding greater accountability.

Asset managers aligned with institutional investors’ demands for stewardship are reaping the reward, picking up the mandates lost by those not following a sustainable approach.

Read the full report: https://www.reprisk.com/insights/reports/where-biodiversity-risks-grow-greenwashing-follows?mtm_campaign=q425-greenwashing-25&mtm_kwd=publications2025&mtm_source=facebook&mtm_medium=org-soc&mtm_content=rr-gwash-gtd-p02