Corporate social responsibility, global investments,

This article reexamines the “doing well while doing good” debate within the financial management literature, using comparisons among socially responsible mutual funds (SRMF(, the NYSE Composite Index, and a portfolio made up of firms most valued by SRMF managers )MostSRF(. The performance of MostSRF did no better or no worse than the over all market or SRMF in three to five year comparisons. However, results from the ten‐year performance comparison refute earlier studies and indicate that the market prices social responsibility characteristics in the long run. Given MostSRF out performed the other two indices in this time line, a new paradigm for understanding the impact of SRI is revealed.

Purpose -The purpose of this paper is to examine the continuing search for evidence that good corporate governance leads to positive organizational outcomes, and it presents a unique perspective on this issue based on firm size.Design/methodology/approach -The study utilized a comprehensive measure of governance as well as a risk-adjusted measure of share price in its comparisons between companies known for good governance and broader markets composed of similar-sized firms.Findings -The findings show evidence of better risk-adjusted performance across all recent sub-periods (three-, five-, and ten-year) for the firms in the smallest market capitalization category. Better risk-adjusted returns were earned for only the ten-year period for the largest firms and the overall US market. Mid-cap stocks were not significant in any of the three periods studied. The fact that the small cap stocks showed significance for all three sub-periods indicates the relationship between good corporate governance practices and the financial success of a company is the strongest for smaller firms and is more likely to be experienced in longer time horizons for most firms, small and large.Research limitations/implications -Investigations of this seminal issue have produced mixed results because the operational definitions of governance often are too narrow, the timeframes for impact are too constricted, and the comparisons are too broad. In addition, the use of a novel approach for understanding why these findings may hold true provides scholars with new avenues for thinking about and modeling the governance-performance relationship.Practical implications -Good governance matters and requires managers and policy makers to find the appropriate context in order to have meaningful comparisons. Social implications -The paper supports the ''doing well while doing good'' paradigm for both individual and institutional investors' investment choices by showing that selecting firms that practice good corporate governance can be a long-term value-maximizing strategy.Originality/value -A major nuance from other studies of the impact of a firm's corporate governance performance on its financial performance is the authors' use of four sub-categories of companies based on market capitalization/firm size. Findings ultimately show whether investors/owners reward corporate governance via stock purchases, and if so, how this relationship may have changed over the past decade according to various markets and risk-adjusted returns.

No abstract

This paper investigates the uncovered interest parity theory for the three emerging markets of Korea, the Philippines, and Thailand. The study provides evidence on the efficiency of the currency markets of these economies. In this paper we test for the uncovered interest parity because futures markets for currencies of most emerging markets are not well developed. Furthermore, short- term exchange rate supply and demand are often dominated by the uncovered international investments. Several statistical tests are applied in an attempt to detect evidence of uncovered interest parity. We find there is evidence that the currencies of higher interest rate emerging economies tend to depreciate in the future spot market. However, our test results indicate that this relationship does not support the uncovered interest parity strictly. Arbitrage opportunities remain for a longer periods than predicted by the uncovered interest parity. Furthermore, these abnormal gains are not random and could be predicted by a well designed econometric model. These findings are consistent with empirical findings surrounding uncovered interest parity for mature markets of the world.