Green Entrepreneurship & Corporate Social Responsibility: Comparative and Correlative Performance Analysis

Abstract

In investment and trading, different CSR/CSE (Corporate Social Responsibility/Corporate Social Entrepreneurship) moral ethical firms, categorized in a number of groups, may be suitable for different financial instruments (i.e. USA sector ETFs) and different market volatility situations. For the purpose of this article we first (i) analyze the trading return performance of four CSR/CSE categories (in particular: green building, green products, green services, and green transportation); and then (ii) examine and comment the correlation between the market performance of a number of firms belonging in these four CSR/CSE categories and historical ETF market volatility. Finally, we (iii) suggest CSR firms as trading tools according to dominant market volatility. Other CSR/CSE categories (like: sustainability, executive sustainability, renewable energy, green IT, green ICT, etc.) would be examined in future research by following the introduced by this paper approach. Paper concludes that, in relatively less volatile markets the Green Transportation CSR/CSE ethical firms display better results. On the other hand, in strong market volatile situations it is better to trade Green Products CSR/CSE and Green Services CSR/CSE ethical firms. Finally, the Green Building CSR/CSE ethical firms are uncorrelated with the market volatility, as well as their performance is poor in all market cases.

Attitude and Motives Towards Corporate Social Responsibility in the Kingdom of Saudi Arabia

“…Firms in these countries no longer see CSR as an optional thing or an indicator of their goodwill or even their profitability. Firms are not only responsible for their conduct but also for their performance as well (Basdekidou, 2017). It is no longer enough to have appealing mission statements and a set of ethical codes to guide the behavior of the firm.…”

Corporate Green CSR Trading Management based on a Metadata Analysis

“…Typically, CSR companies included in ETF CSR databases are: Alternative energy companies and firms, and ecologic / biologic organic food markets. Finally, in the CSR-ETF ground, Chen [14] examines the spill-over and the leverage effects of the ETFs included the CSR category, and Basdekidou [4] performed an empirically tested analysis for the CSR concept related to a number of CSR leveraged ETFs.…”

“…It is notable that, after applying the proposed trading management approach, the displayed profits (returns) in Tables 1-4 are inconsistent with the mainstream trading theories about overnight-position and intra-day trading. So, this anomaly could be well characterized as a new (temporal) market inconsistency not belonging to literature-defined fundamental, technical or time-based ones [3,4,17].…”

“…In particular the concept "corporate green CSR trading management" is introduced and documented and its derived relative temporal function is defined and analyzed by using the Livermore's "Psychological Time" as parameter, and its functionality is documented in "Emotional Control" and "Money Risk Management" trading dimensions. Livermore [15]; Lefèvre [16]; Basdekidou [4]; and Avellaneda and Zhang [20] discuss trading methodologies. Also, in computational finance theory, leveraged (in particular if it is based on ETFs or ETNs instruments) implied volatility from market dynamics [2,6,12].…”

“…After a backtesting procedure in available 3-year data (2015,2016,2017) for the group of the 56 ethical ETFs and the GASL bull 3x leveraged ETF (Natural Gas), it was found that hedge funds in no-way and sidelong markets, profit from the proposed approach at the expense of long-term investors and swing traders according to Leung, Lorig, and Pascucci [2]. On the other hand, in bull/bear markets, short-term traders and institutions profit from the proposed approach at the expense of hedge funds according to Little [3] and Basdekidou [4]. In management and particularly in trading management, apart from the instrument (ETF, ETN, stock, etc.…”