Is Socially Responsible Investing (SRI) in Stocks a Competitive Capital Investment? A Comparative Analysis Based on the Performance of Sustainable Stocks

Blankenberg, Ann‐Kathrin; Gottschalk, Jonas F. A.

doi:10.2139/ssrn.3186094

Cited by 7 publications

(12 citation statements)

References 94 publications

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“…Recently, socially responsible investing (SRI) has attracted increasing attention from researchers and investors (Blankenberg and Gottschalk, 2018; Pokorna, 2017; Rehman and Vo, 2020). The new generation of investing community and trade analysts emphasized issues beyond board characteristics and CEO compensation while understanding complexities associated with CG.…”

Section: Discussionmentioning

confidence: 99%

A comparative study of corporate governance practices of Indian firms affiliated to business groups and industries

Mohanty

Mishra²

2021

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Purpose This paper aims to study the corporate governance practices followed by the listed companies in India to find out if industry and business group affiliation of firms influence their corporate governance practices. Design/methodology/approach The authors have created a corporate governance index for India using 15 of the variables used in past research. Hierarchical regression has been used in the study to control for possible inter-firm correlation in governance scores. Findings Using principal component analysis, the authors derive five factors for the corporate governance index – board composition, shareholder responsibility, ownership, responsible board behavior and fair executive compensation. Using the random intercept mixed-effects model, the authors find that corporate governance behaviors of firms affiliated to business groups are more similar within business groups than within industries. Practical implications Regulatory authorities generally target individual firms to enforce good corporate governance practices. As companies affiliated with the same business group exhibit similar governance practices, regulators can also set norms for business groups in addition to individual firms. Originality/value Scant research has studied the corporate governance behavior of firms affiliated with business groups. By making business groups (and industries) the unit of analysis, the authors have studied the corporate governance behavior of firms as a cluster in the context of an emerging country, India.

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Section: Discussionmentioning

confidence: 99%

A comparative study of corporate governance practices of Indian firms affiliated to business groups and industries

Mohanty

Mishra²

2021

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“…However, most later studies, such as those by Pedersen, Fitzgibbons, and Pomorski (2021), and Auer and Schuhmacher (2016), mainly found negative results. Interestingly, studies by Naffa and Hain (2018) and Blankenberg and Gottschalk (2018) reported a no-effect hypothesis.…”

Section: Literature Reviewmentioning

confidence: 98%

“…At the same time, empirical studies evaluating the performance of these sustainable investment approaches yield mixed return performance, which is problematic (Blankenberg & Gottschalk, 2018). However, most studies are limited by sample size, yet the sample period has been identified as a critical determinant in the financial performance of these sustainable investment strategies (Pokorna, 2017).…”

Section: Introductionmentioning

confidence: 99%

A Systematic Review of Sustainable Investment Approaches

Akala¹,

Neuhaus²,

Leary-Govender³

2022

IJEF

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The article examined three widely accepted approaches to sustainable investing: Socially Responsible Investing (SRI), Environmental, Social and Governance (ESG), and impact investing. Nevertheless, these sustainable investment strategies are under-institutionalised, characterised by a lack of consistent terminology and mixed return performance. Given that these inconsistencies are prevalent in academic research regarding sustainable investing, the paper aimed to perform a systematic review of related studies to compare, contrast and consolidate these sustainable investment approaches. The findings of this study reveal overlapping conceptual frameworks between SRI, ESG and impact investing. The paper recommends the development of a consistent conceptual framework for sustainable investing.

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“…Secondly, portfolio investment emphasizes rational investment methods, rational investment concepts, state of health, and a stable investment market, which uses the expected value to represent the investment return and the standard deviation to represent the risk of return. [7] Thirdly and most importantly, increasing the variety and quantity of securities unrelated to each other in the portfolio can effectively reduce the risk of the whole portfolio. In that case, portfolio investment can easily solve the risk measurement of assets.…”

Section: Introductionmentioning

confidence: 99%

The Influences of Markowitz Model with Different Constraints for Optimal Portfolio

Shi¹,

Zhu²

2021

Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

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This paper aims to use the Markowitz model to find the optimal portfolios under different constraints and compare the differences. In this paper, we use ten stocks that correspond to the ten listed companies that need to be analyzed. The paper includes 20 years of historical daily return for ten stocks in NYSE, a proxy for risk-free rate (1-month federal funds rate), and the equity index (S&P 500) data for ten stocks. The optimal weights of the ten stocks have done under five constraint conditions to compare each other within the minimum variance portfolio and maximum Sharpe portfolio. Return rate, standard deviation, and Sharpe ratio are also calculated for determining the optimum portfolio.

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Is Socially Responsible Investing (SRI) in Stocks a Competitive Capital Investment? A Comparative Analysis Based on the Performance of Sustainable Stocks

Cited by 7 publications

References 94 publications

A comparative study of corporate governance practices of Indian firms affiliated to business groups and industries

A comparative study of corporate governance practices of Indian firms affiliated to business groups and industries

A Systematic Review of Sustainable Investment Approaches

The Influences of Markowitz Model with Different Constraints for Optimal Portfolio

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