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.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
Common risk factors in the returns on stocks and bonds
Fama, E. F., & French, K. R. (1993) · Journal of Financial Economics · doi:10.1016/0304-405x(93)90023-5 · Cited by 25,754
On Persistence in Mutual Fund Performance
Carhart, M. M. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb03808.x · Cited by 17,283
Corporate Social and Financial Performance: A Meta-Analysis
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003) · Organization Studies · doi:10.1177/0170840603024003910 · Cited by 7,641
A Simple Test for Heteroscedasticity and Random Coefficient Variation
Breusch, T. S., & Pagan, A. R. (1979) · Econometrica · doi:10.2307/1911963 · Cited by 5,647
FAMA, E. F. (1991) · The Journal of Finance · doi:10.1111/j.1540-6261.1991.tb04636.x · Cited by 5,350
The price of sin: The effects of social norms on markets
Hong, H., & Kacperczyk, M. (2009) · Journal of Financial Economics · doi:10.1016/j.jfineco.2008.09.001 · Cited by 2,601
The Eco-Efficiency Premium Puzzle
Derwall, J., Guenster, N., Bauer, R., & Koedijk, K. (2005) · Financial Analysts Journal · doi:10.2469/faj.v61.n2.2716 · Cited by 965
The Wages of Social Responsibility
Statman, M., & Glushkov, D. (2009) · Financial Analysts Journal · doi:10.2469/faj.v65.n4.5 · Cited by 634
Cited by
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
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
Data sources
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.
