Efficiency of the Public Pensions Funds on the Socially Responsible Equities of Mexico

Torre-Torres, Oscar V. De la; Galeana-Figueroa, Evaristo; Álvarez‐García, José

doi:10.3390/su11010178

Cited by 6 publications

(2 citation statements)

References 52 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Theoretically, the role of institutional investors is more positive in those countries where investors' protection mechanism is weak (La Porta et al, 1997;. So, in a weak legal and unstable environment, these expert investors with their power of vote not only discipline the management but also motivate them to allocate financial resources for CSR activities (Wahba & Elsayed, 2015).…”

Section: Institutional Ownership Corporate Social Responsibility and Firms Performancementioning

confidence: 99%

Corporate social responsibility and firm performance: The moderation of investment horizon and corporate governance

Waheed

Hussain

Hanif

et al. 2021

Cogent Business & Management

View full text Add to dashboard Cite

The current study proposes an integrated theoretical frame work, to explain the moderating role of institutional investors, their investment horizon and corporate governance mechanism in the sustainability of corporate social responsibility (CSR) and firm's performance nexus. The proposed model explains how, the positive association between CSR and firm performance relationship, established on the basis of the stakeholder and corporate citizenship theories, can be further strengthened (effective monitoring hypothesis) or weakened (myopic institutions theory) by the presence of institutional investors in the firm's ownership structure and corporate governance mechanism (agency theory). The study tested the proposed model on the unbalanced sample of 327 non-financial firms listed on the Pakistan stock exchange (PSX). The study concludes that, based on the agency theory, institutional investors (as a homogeneous group) positively moderates the CSR and firm performance relationship. However, agency theory failed to explain the negative moderation of short term investment horizon institutional investors and firm performance. The study further confirms the agency role of effective corporate

show abstract

Section: Institutional Ownership Corporate Social Responsibility and Firms Performancementioning

confidence: 99%

Corporate social responsibility and firm performance: The moderation of investment horizon and corporate governance

Waheed

Hussain

Hanif

et al. 2021

Cogent Business & Management

View full text Add to dashboard Cite

show abstract

“…Conventional pension funds use superior information for stock picking whereas SRI pension funds use it for market timing strategies. In a daily simulation over a 3-year horizon, Torre-Torres et al [44] observe that Mexican public pension funds are just as meanvariance efficient whether they invest in a sustainable index or in a conventional index, but that they perform better in the former case during economic shocks. Sievanen et al [45] find that European pension funds which use SRI tend to be large, public-sector, with defined benefit pensions.…”

Section: Related Literaturementioning

confidence: 99%

Long-Term Sustainable Investment for Retirement

et al. 2021

View full text Add to dashboard Cite

We consider whether sustainable investment can deliver performance comparable to conventional investment in investors’ long-term retirement plans. On the capital markets, sustainable investment can be achieved through various instruments and strategies, one of them being investment in mutual funds that subscribe to ESG (environmental, social, and governance) principles. First, we compare the investment performance of ESG funds with matched conventional funds over the period 1994–2020, in Europe and the U.S.. We find no significant evidence of differing performance (at 5% level) despite using a number of investment performance metrics. Second, we perform a historical backtest to model a UK personal retirement plan from 2000 till 2020, taking full account of investment management fees and transaction costs. We find that investing in an index-tracker fund overlaid with ESG screening delivers a pension which is 10.4% larger than is achieved if the index-tracker fund is used without screening. This is also 20.2% larger than is achieved by investing in a collection of actively managed funds with a sustainable purpose. We conclude that an ESG-screened long-term passive investment approach for retirement plans is likely to be successful in satisfying the twin objectives of a secure retirement income and of sustainability.

show abstract

An Alternative Framework for Socially Responsible Portfolios Optimization Applied to the Moroccan Stock Exchange

Hanine¹,

Tkiouat

Lahrichi

2021

IJAHP

View full text Add to dashboard Cite

The purpose of this article is to propose an alternative approach for portfolio optimization combining financial and ethical constraints in one hand, and objective and subjective investor’s preferences in the other hand. This approach intends to support investors in selecting and optimizing financial and social portfolio’s performances. More precisely, we introduce analytic hierarchy process (AHP) to measure the ethical performance (EP) score of each asset considering ethical criteria. For its part, fuzzy multiple criteria decision making (FMCDM) is used to determine the overall financial quality score of assets with respect to key financial criteria i.e., short term return, long term return, and risk. Besides, interactive fuzzy programming approach is applied to support the investor’s decision, considering its subjective preferences. The robustness of our approach is tested through an empirical study involving the case of the Casablanca Stock Exchange (CSE). The results give evidence that the Socially Responsible (SR) Portfolio have performed similar to the conventional one, as no significant differences were found in term of return. However, the SR portfolio allows the investor to achieve his ethical goal, against a slight financial sacrifice.

show abstract

Efficiency of the Public Pensions Funds on the Socially Responsible Equities of Mexico

Cited by 6 publications

References 52 publications

Corporate social responsibility and firm performance: The moderation of investment horizon and corporate governance

Corporate social responsibility and firm performance: The moderation of investment horizon and corporate governance

Long-Term Sustainable Investment for Retirement

An Alternative Framework for Socially Responsible Portfolios Optimization Applied to the Moroccan Stock Exchange

Contact Info

Product

Resources

About