Research
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Working Papers
Public ESG Concerns and Mutual Fund Flows, with Bart Frijns (Auckland University of Technology) & Angga Sasmitapura (Open Universiteit & Universitas Katolik Parahyangan)
Abstract: We investigate how public environmental, social, and governance (ESG) concerns shape mutual fund flows. Using a Google-based measure of time-varying ESG attention and holdings-based ESG scores for U.S. equity funds, we show that ESG characteristics matter for flows primarily when public ESG attention is high. During these periods, high-ESG funds attract greater net inflows relative to low-ESG funds, driven mainly by outflows from low-ESG funds rather than increased investment in high-ESG funds. We find that this effect is concentrated among institutionally dominated funds, with little response among retail-oriented funds. This is consistent with reputational and stakeholder pressures faced by institutional investors. Consistent with a clientele-based catering mechanism, we further show that institutionally dominated funds improve the ESG quality of their portfolios when ESG attention rises. Overall, our results reveal that ESG demand is state-dependent and highlight the central role of institutional investors in transmitting public ESG concerns into capital allocation.
Presentations: Economics and Finance Seminar Aukland University of Technology (2025)
Do public ESG concerns affect firms’ performancee?, with Bart Frijns (Auckland University of Technology) & Angga Sasmitapura (Open Universiteit & Universitas Katolik Parahyangan)
Abstract: This paper examines whether time variation in public attention to environmental, social, and governance (ESG) issues has real effects on firm performance. We construct a novel ESG Concerns Index based on Google search data to capture fluctuations in ESG salience. Using U.S. firm-level data from 2004–2022, we show that firms with stronger ESG characteristics exhibit higher profitability when ESG concerns are elevated. Consistent with a demand-driven mechanism, heightened ESG concerns increase the value of ESG attributes as a form of product differentiation, enabling high-ESG firms to command higher markups. Accordingly, the effect is driven by operating profit margins, with no corresponding change in asset turnover. The effect is stronger in industries with greater scope for differentiation, in more competitive markets, and among firms with higher R&D and advertising intensity. Our findings provide direct evidence that ESG attention has real cash-flow effects and highlight the state-dependent value of ESG as a differentiation strategy.
Presentations: 14th Annual New Zealand Finance Meeting (NZFM 2025) | 22nd Corporate Finance Day (CFD 2025) | 34th Annual Conference of the European Financial Management Association (EFMA 2025) | Auckland Finance Workshop Series (2025) | Open Universiteit LIRS Seminar (2025)
Investment criteria of mutual fund investors: How financial literacy shapes investment choices, with Thomas Post (Maastricht University)
Abstract: We examine the role of financial literacy in mutual fund selection among retail investors. Using a discrete choice experiment with 1,110 Dutch adults, we analyze trade-offs between fund attributes such as fees, returns, risk, geographical focus, and sustainability. Higher financial literacy significantly increases sensitivity to fees, leading to stronger aversion to high costs. Surprisingly, financially literate investors also pay more attention to past returns and favor funds with consistent positive performance, suggesting they may view consistency as a signal of reliable management. Financially literate investors exhibit less home bias, showing a reduced preference for geographically focused funds, and display a stronger inclination toward sustainability-focused funds aligned with SFDR Articles 8 and 9. Additionally, latent class analysis reveals clearly distinct investor segments characterized by varying decision-making strategies and financial literacy levels. These findings highlight the complex role of financial literacy in shaping investment choices.
Presentations: 2nd G53 Financial Literacy and Personal Finance Network Conference (2025) | 2nd Turin Workshop on Financial Literacy (2025) | 40th Annual Conference of the European Economic Association (EEA 2025) | Netspar International Pension Workshop (2025) | the Mannheim Institute for Financial Education (MIFE) Early Career Workshop (2024), 5th Research in Behavioral Finance Conference (RBFC 2024) | LEER Workshop on Financial Literacy, Education | Behavioral Insights (2024) | G53 Brown Bag Seminar (2022)
Signaling sustainability through green bonds: Post-issuance stock performance and climate change concernssustainability through green bonds: Evaluating its impact on stock returns, with Bart Frijns (Auckland University of Technology) & Angga Sasmitapura (Open Universiteit & Universitas Katolik Parahyangan), Bert D’Espallier (KU Leuven) and Eline Van der Auwera (KU Leuven)
Abstract: This study examines whether green bond issuance is followed by stronger stock performance over longer post-issuance horizons and whether this pattern becomes more pronounced when climate change concerns are elevated. Using a global sample of corporate green bond issuers and a matched sample of conventional bond issuers, we find that green bond issuers earn positive abnormal stock returns after issuance over both the 12-month and 36-month horizons. This pattern is more pronounced during periods when climate change concerns are elevated. Green bond issuers also tend to outperform matched conventional bond issuers more strongly during high-concern periods, although this comparative evidence becomes weaker over longer horizons.
Presentations: Money Meets the Southern Cross: The Inaugural Australasian Global Finance Summit (2026) | 3rd Learning and Innovation for Resilience and Sustainability (LIRS) Symposium (2024) | 21st Corporate Finance Days (2024 CFD) | 33rd Annual Conference of the European Financial Management Association (2024 EFMA) | LIRS Seminar Open Universiteit | 18th Belgian Financial Research Forum (2024 BFRF)
Transporting predictions via double machine learning: Predicting partially unobserved students’ outcomes, with Falco J. Bargagli-Stoffi (University of California), Emma Laundry (University of California), Kevin P. Josey (Colorado School of Public Health), Joana Elisa Maldonado (European Commission), Kristof De Witte (KU Leuven & Maastricht University)
Abstract: Educational policymakers often lack data on student outcomes in regions where standardized tests were not administered. Machine learning techniques can be used to predict unobserved outcomes in target populations by training models on data from a source population. However, differences between the source and target populations, particularly in covariate distributions, can reduce the transportability of these models, potentially reducing predictive accuracy and introducing bias. We propose using double machine learning for a covariate-shift weighted model. First, we estimate the overlap score—namely, the probability that an observation belongs to the source dataset given its covariates. Second, balancing weights, defined as the density ratio of target-to-source membership probabilities, are used to reweight the individual observations’ contribution to the loss or likelihood function in the target outcome prediction model. This approach downweights source observations that are less similar to the target population, allowing predictions to rely more heavily on observations with greater overlap. As a result, predictions become more transportable under covariate shift. We illustrate this framework in the context of uncertain data on students’ standardized financial literacy scores (FLS). Using Bayesian Additive Regression Trees (BART), we predict missing FLS. We find minimal differences in predictive performance between the weighted and unweighted models, suggesting limited covariate shift in our empirical setting. Nonetheless, the proposed approach provides a principled framework for addressing covariate shift and is broadly applicable to predictive modeling in the social and health sciences, where differences between source and target populations are common.
Journal Publications
De Beckker, K., Frijns, B., Hubers, F., Derkx, S. (2025) The long-term impact of financial literacy on wealth: Evidence from longitudinal data Economic Letters, 257, 112682.
Cannistrà, M., De Beckker, K., Agasisti, T., De Witte, K., Amagir, A., Põder, K., & Vartiak, L. (2024) The impact of an online game-based financial education course: Multi-country experimental evidence. Journal of Comparative Economics, 52(4), 825-847.
De Beckker, K., De Witte, K., & Van Campenhout, G. (2021) The effect of financial education on students’ consumer choices. Evidence from a randomized experiment, Journal of Economic Behavior & Organization, 188, 962-976.
De Beckker, K., De Witte, K., & Van Campenhout, G. (2020) The role of national culture in financial literacy: Cross-country evidence. Journal of Consumer Affairs, 54(3), 912-930.
De Beckker, K., De Witte, K, & Van Campenhout, G. (2019) Identifying financially illiterate groups: An international comparison. International Journal of Consumer Studies, 43(5), 490-501.
De Beckker, K., Compen, B., De Bock, D., & Schelfhout, W. (2019) The capabilities of secondary school teachers to provide financial education. Citizenship, Social and Economics Education, 18(2), 66-81.
Books/Book Chapters
De Beckker, K. (2020) Financial literacy – Uncovering avenues for future research. In De Witte, K., Holz., O. & De Beckker, K. (eds.) Financial Education: Current Practices and Future Challenges. Münster: Waxmann.
De Beckker, K., De Witte, K., & Holz, O. (2020). A comparative analysis of pupils’ and teachers’ financial competences in five European countries. In De Witte, K., Holz, O. & De Beckker, K. (eds.) Financial Education: Current Practices and Future Challenges. Münster: Waxmann.
De Witte, K., De Beckker, K., & Holz, O. (2020). Financial education in Flanders (Belgium). In De Witte, K., Holz, O., & De Beckker, K. (eds) Financial Education: Current Practices and Future Challenges. Münster: Waxmann.
Van Campenhout, G., De Witte, K., & De Beckker, K. (2017). Financiële vorming op school. In De Witte, K. & Hindriks, J. (eds). De Geslaagde School (pp. 153-182). Itinera Institute – Skribis.
De Beckker, K. Dombrecht, M. Heremans, D., & Vanneste, J. (2013). Geld en financiewezen: België in de eurozone. Antwerpen: De Boeck.
Policy reports
Marneffe, W., Popelier, P., Billiet, C., Jans, T., Van Aeken, K., De Beckker, K. (2021) Methodologische onderbouwing en conceptuele uitwerking van het gebruik van doelregelgeving en open normen met behulp van experimentwetgeving en regelluwe zones binnen het omgevingsrecht van de Vlaamse overheid. Vlaamse Overheid, Departement Kanselarij en Buitenlandse Zaken.
De Beckker, K. Smits, I., Maldonado, J.E., Vermeersch, L., De Witte, K. (2020) Onderzoek naar de financiële geletterdheids-competenties van mensen in armoede. Vlaams Ministerie Welzijn, Volksgezondheid en Gezin.
Other publications
De Beckker, K., De Witte, K., & Van Campenhout, G. (2018). De kwetsbaarheid van financiële analfabeten. Leuvense Economische Standpunten, 2018/166, pp. 1-6.
De Witte, K. Van Campenhout, G., & De Beckker, K. (2017). Financiële educatie op school. Itinera Institute Analysis, 2017/2, pp. 28.