Do mutual funds greenwash? Evidence from fund name changes

Author First name, Last name, Institution

• Alexander Cochardt, University of St. Gallen
• Stephan Heller, University of St. Gallen
• Vitaly Orlov, Zayed UniversityFollow

Document Type

Article

Source of Publication

Research in International Business and Finance

Publication Date

10-1-2026

Abstract

This paper investigates whether mutual funds ESG-related name changes reflect sustainability commitment or greenwashing. We find that smaller, older funds with prolonged outflows rebrand to attract capital. Post-change, funds improve portfolio sustainability scores by imposing negative screens on poor-sustainability-performing firms and attract 13% abnormal flows. However, they fail to support environmental and social proposals through voting, even when votes are pivotal or discretion is high. Institutional investors discern substantive commitments, while retail investors remain susceptible. Our findings highlight misalignment between fund naming, portfolio choices, and voting behavior in sustainable investing, consistent with greenwashing.

DOI Link

10.1016/j.ribaf.2026.103555

ISSN

0275-5319

Publisher

Elsevier BV

Volume

90

Disciplines

Business

Keywords

ESG, Greenwashing, Mutual funds, Voting

Scopus ID

105045008418

Recommended Citation

Cochardt, Alexander; Heller, Stephan; and Orlov, Vitaly, "Do mutual funds greenwash? Evidence from fund name changes" (2026). All Works. 8108.
https://zuscholars.zu.ac.ae/works/8108

Indexed in Scopus

yes

Open Access

yes

Open Access Type

Green: A manuscript of this publication is openly available in a repository