2 Related literaturesOur study buil

2 Related literatures
Our study builds on the recent literature on investor taste and disagreement. Fama and French (2007) provide a framework for asset pricing when investors disagree about funda-mentals or have heterogeneous private valuations (i.e., taste). They focus on situations where investors either derive a non-random utility from their shareholdings or where fundamental returns in. hence tastes for assets. In our setting the extra taste-based utility derived from share holdings is risky, because it depends on a risky CSR outcome, and does not depend
on menial returns, because we assume additively separable utility and no covariance between fundamentals and CSR. Rahi and Zigrand (2014) explore how differences in private Valuations affect the in formativeness of price. Jarrow (1980) examines potential effects of Short-sale restrictions in a market where investors have different preferences. As in these studies, our taste-based model is closely related to models featuring investors who disagree about the distributions of menial returns (e.g., Harris and Raviv, 1993; He and Shi, 2012). We discuss this and other interpretations of our model in Section 6.2.