Welcome at LFIN !
LFIN, Louvain Finance, is a research center of the Université catholique de Louvain, located in Louvain-la-Neuve (Belgium). It has been founded in 2016 and it now houses about 11 professors, and 15 researchers.
LFIN promotes and contributes to academic research in Finance via its research projects and the organization of top-level PhD courses, conferences and other public research activities. The Center’s main area of expertise are related to most of the areas of finance, including Asset Pricing, International Finance, Asset and Risk Management, Mathematical Finance, Macro-Finance, Market Microstructure, Corporate Finance and Behavioral Finance.
The center is leading several innovative projects, such as the first Bloomberg learning center in Belgium and it is supported in its activities by leading private institutions such as TreeTop Asset Management and Candriam.
Together with CORE, IRES, ISBA, LFIN, and SMCS, LFIN is part of the Institute of Multidisciplinary Research for Quantitative Modeling and Analysis (LIDAM) where researchers develop and use a coherent set of tools and methods for quantitative modeling and analysis in their various fields of expertise.
Upcoming events
LIDAM Finance Seminar - Gaëlle Le Fol
22/05/2026 - 11:00 - LIDAM D.251 -
Gaëlle Le Fol
(Université Paris Dauphine)
will give a presentation on
Who Measures and Who Reacts? ESG Scores, Institutional Demand, and Asset Pricing
Abstract :
How does ESG information reach asset prices, and why does the answer depend on who produces the rating? Using a causal mediation framework applied to U.S.\ equities over 2016--2025 with Refinitiv and MSCI ratings, we show that approximately 19\% of the negative ESG premium is transmitted through institutional portfolio reallocation --- a lower bound, given the exclusion of neutral investors and the growth of passive management. The decomposition reveals that the market absorbs demand symmetrically regardless of investor type, yet ESG-averse investors respond far more aggressively than ESG-oriented ones, generating an implicit short that dominates the indirect channel. This separation between symmetric market structure and asymmetric behaviour answers the paper's titular questions: \emph{who reacts} is revealed by investor heterogeneity, \emph{who measures} by the provider-specific activation of demand. Quasi-experimental evidence from index reconstitutions confirms causality.
More information about the speaker
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