In 2021,Edmans was named Professor of the Year by Poets&Quants.[8] From 2017 to 2022 he served as managing editor of the Review of Finance,increasing its impact factor from below 2 to above 5.[9]
Edmans' research is on corporate governance,executive pay,the real effects of financial markets,and behavioral finance,and has been cited over 20,000 times. His work covers topics such as the role of blockholders (large shareholders) in disciplining management,[12] the importance of long horizons in executive pay,[13][14] how managers learn from financial markets to guide their real decisions,[15][16][17] and the effect of sentiment on the stock market.[18][19]
Responsible business
Edmans’main strand of research is on the business case for responsible business,demonstrating that responsibility can create financial as well as social value. His papers in the Journal of Financial Economics[20] and Academy of Management Perspectives[21] show that companies with high employee satisfaction,as measured by their inclusion in the 100 Best Companies to Work For in America,delivered shareholder returns that beat their peers by 2.3-3.8% per year over a 28-year period. His book,Grow the Pie,argues that investing in stakeholders does not split the pie at the expense of shareholders,but grows the pie for the ultimate benefit of shareholders.
His most recent work highlights the trade-offs and complexities involved in responsible business. He finds that demographic diversity statistics bear little relation to diversity,equity,and inclusion,[22] and that the high returns to carbon-emitting stocks arise due to higher profits rather than greater risk.[23] His paper The End of ESG called for the ESG term to be scrapped on the grounds that environmental,social,and governance issues are relevant to all practitioners,not just ESG practitioners. It argues that ESG is "extremely important and nothing special",the former because it is critical to long-term value and the latter because it should not be seen as superior to other drivers of long-term value.[24]
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