The Challenge of Ethical Investment: Activism, Assets and Analysis

Sparkes, Russell

doi:10.1057/9780230379794_8

Cited by 16 publications

(22 citation statements)

References 5 publications

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“…This is consistent with the results of Matterson (2000), which showed that, although many investors valued social and environmental responsibility, fi nancial performance was still their main concern, a result that is also supported by the work of Sparkes (1998), who found that fi nancial returns are important for ethical investors.…”

Section: The Moderating Effect Of Corporate Financial Performance: Hysupporting

confidence: 92%

Exploring the moderating effect of financial performance on the relationship between corporate environmental responsibility and institutional investors: some Egyptian evidence

Wahba

2008

Corp Soc Responsibility Env

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Much of the existing literature has argued that those fi rms that invest in environmental initiatives attract more institutional investors. A noticeable problem with these studies is the assumption that the relationship between institutional investors and corporate environmental responsibility is a monotonic relationship that does not vary with fi rm fi nancial performance. Initial fi ndings of this study demonstrated that corporate environmental responsibility exerted a positive and signifi cant coeffi cient on institutional ownership. However, when an interaction term between environmental responsibility and fi nancial performance was included, the results verifi ed that corporate environmental responsibility has a neutral impact on the preferences of institutional investors. Moreover, by classifying fi rms into two sub-groups, according to their fi nancial performance, environmental responsibility was found to have a positive and signifi cant impact on institutional ownership only when fi nancial performance is high.

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Section: The Moderating Effect Of Corporate Financial Performance: Hysupporting

confidence: 92%

Exploring the moderating effect of financial performance on the relationship between corporate environmental responsibility and institutional investors: some Egyptian evidence

Wahba

2008

Corp Soc Responsibility Env

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“…For instance, according to research by Matterson (2000), while many investors admire social responsibility and ethics, money remains their primary concern. Other research by Sparkes (1998) found that 35% of respondents said they would invest ethically despite their returns being slightly lower than those of comparable conventional funds. Sparkes' research shows, however, that this percentage falls sharply if the return of ethical funds is significantly less than that of conventional funds.…”

Section: Framework and Hypothesesmentioning

confidence: 91%

“…There has been a long lasting debate about the existence of a trade-off between financial return and SRI. Many studies have pointed out that SRI may be attractive for investors: Sparkes (1998), Nilsson (2009), and Beal et al (2005, even if it supposes a lower financial performance. Also using an experimental approach, Webley et al (2001) and Glac (2009) find evidence that some investors are willing to accept a trade-off between return and SRI.…”

Section: Measuring Investors' Socially Responsible Preferences In Mutmentioning

confidence: 98%

Measuring Investors’ Socially Responsible Preferences in Mutual Funds

2011

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“…While shareholder advocacy has become a larger and increasingly important part of the overall SRI movement over the past years (Social Investment Forum, 2006) and has in the past gone hand-in-hand with social screening (Sparkes, 1998), shareholder advocacy will not be considered in this paper because the advocacy process is distinct from the screening process. Activism is more involved and the associated decisions include the performance of further actions in addition to choosing certain investments.…”

mentioning

confidence: 98%

“…Activism is more involved and the associated decisions include the performance of further actions in addition to choosing certain investments. For example, investors have to overcome certain procedural hurdles to submit shareholder resolutions and might have to initiate lawsuits to enforce their legal rights (Domini, 1994;Sparkes, 1998). This might be associated with significant time involvement as well as additional financial sacrifice.…”

mentioning

confidence: 98%