The DOI matches its Crossref record; 8 of the 8 references it cites were found in a registry or an index.
The wages of social responsibility — where are they? A critical review of ESG investing
Abstract
This paper contributes both to investigating the link between the corporate social and financial performance based on environmental, social and corporate governance (ESG) ratings and to reviewing the existing empirical evidence pertaining to this relationship. The sample used includes ESG data of ASSET4, Bloomberg and KLD for the U.S. market from 1991 to 2012. The econometrical framework applies an ESG portfolio approach using the Carhart (1997) four‐factor model as well as cross‐sectional Fama and MacBeth (1973) regressions. Previous empirical research indicates a relationship between ESG ratings and returns. As against this, the ESG portfolios do not state a significant return difference between companies with high and low ESG ratings. Although the Fama and MacBeth (1973) regressions reveal a significant influence of several ESG variables, investors are hardly able to exploit this relationship. The magnitude and direction of the impact are substantially dependent on the rating provider, the company sample and the particular subperiod. The results suggest that investors should no longer expect abnormal returns by trading a difference portfolio of high and low rated firms with regard to ESG aspects.
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Cites
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Carhart, M. M. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb03808.x · Cited by 17,283
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The Wages of Social Responsibility
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Does responsible investing pay during economic downturns: Evidence from the COVID-19 pandemic
Omura, A., Roca, E., & Nakai, M. (2021) · Finance Research Letters · doi:10.1016/j.frl.2020.101914 · Cited by 142
Payout policy and ESG: A European investigation
Salvi, A., Nirino, N., Battisti, E., & Gianfrancesco, I. (2024) · Research in International Business and Finance · doi:10.1016/j.ribaf.2023.102189 · Cited by 39
Carbon neutrality: The role of banks in optimal environmental management strategies
Chaudhry, S. M., Saeed, A., & Ahmed, R. (2021) · Journal of Environmental Management · doi:10.1016/j.jenvman.2021.113545 · Cited by 33
Social Media, Relationship Marketing and Corporate ESG Performance
Ye, X., Hou, R., Wang, S., & Omar, N. A. B. (2024) · Finance Research Letters · doi:10.1016/j.frl.2024.105288 · Cited by 24
Strategic Sustainability in the Anthropocene
Tan, E., & Rudolph, J. (2023) · Advances in Business Strategy and Competitive Advantage · doi:10.4018/978-1-6684-6845-6.ch013 · Cited by 4
Metadata
- Authors
- Halbritter, G., & Dorfleitner, G.
- Venue
- Review of Financial Economics
- Publisher
- Wiley
- Published
- 2015-04-02
- Volume
- 26
- Issue
- 1
- Pages
- 25-35
- ISSN
- 1058-3300 (ISSN-L)
- 1873-5924
- OpenAlex
- W1993612039
- Cited by
- 586
- References
- 8
- FWCI
- 24.33
- Type
- journal article
- Language
- en
- Open access
- closed
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
