Study: Divesting from fossil fuel firms could cost colleges billions

Major universities that rely on large endowments could be hit hard by the recent shift towards divesting from fossil fuels.

Major universities that rely on large endowments could be hit hard by the recent shift towards divesting from fossil fuels. The Francis J. and Mary B. Labriola Endowed Chair in Competitive Business and Finance Professor Hank Bessembinder's research found that the cost would be billions of dollars over the span of 20 years. From the Washington Examiner, June 1, 2016:

Arizona State University professor Hendrik Bessembinder wrote that divesting from fossil fuels would require universities to more actively manage their investments, instead of simply letting the money grow over time. The costs of more actively managing the investments, with the costs incurred during the actual transaction, make up the "hidden costs" of divestment, he wrote.

Hank Bessembinder studies financial markets including, stock markets, foreign exchange markets, energy markets and stock pricing, among others.

About Hank Bessembinder.