The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.
The Allocation of Socially Responsible Capital
Open accessAbstract
ABSTRACT Portfolio allocation decisions increasingly incorporate social values. We develop a tractable framework to study how competition between investors to own socially valuable assets affects social welfare. Relative to the most common social‐investing strategies, we identify alternative strategies that result in higher impact and higher financial returns. We identify strategies for investors to have impact when impact is difficult to measure. From the firm's perspective, increasing profitability can have greater impact than directly increasing social value. We present new empirical evidence on the social preferences of investors that demonstrates the practical relevance of our theory.
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
Sustainable investing in equilibrium
Pástor, Ľ., Stambaugh, R. F., & Taylor, L. A. (2021) · Journal of Financial Economics · doi:10.1016/j.jfineco.2020.12.011 · Cited by 2,226
ESG Investing: How to Optimize Impact?
Landier, A., & Lovo, S. (2020) · doi:10.2139/ssrn.3508938 · Cited by 82
Research works printed but not linked: 29
- Chris Addy, 2019, Calculating the value of impact investing
- Mats Andersson, 2016, Hedging Climate Risk, Financial Analysts Journal, 72, 13, 10.2469/faj.v72.n3.4 · DOI · Paper page
- James Andreoni, 1990, Impure altruism and donations to public goods: A theory of warm glow giving, The Economic Journal, 100, 464, 10.2307/2234133 · DOI · Paper page
- James Andreoni, 1993, An experimental test of the public-goods crowding-out hypothesis, American Economic Review
- Malcolm Baker, 2018, Financing the response to climate change: The pricing and ownership of us green bonds
- Brad M Barber, 2019, Impact Investing. SSRN Scholarly Paper ID 2705556, 10.3386/w26582 · DOI
- Gary Becker, 1973, A theory of marriage: Part i, Journal of Political Economy, 81, 813, 10.1086/260084 · DOI
- Gary E Bolton, 1998, An experimental test of the crowding-out hypothesis: The nature of beneficent behavior, Journal of Economic Behavior and Organization
- Jean-Francois Bonnefon, 2019, Do investors care about corporate externalities? experimental evidence
- Paul Brest, 2016, How investors can (and can't) create social value
- Eleonara Broccardo, 2020, Exit vs. voice, 10.3386/w27710 · DOI
- Kenneth S Chan, 2002, Crowding-out voluntary contributions to public goods, Journal of Economic Behavior and Organization
- Sudheer Chava, 2011, Environmental Externalities and Cost of Capital. SSRN Scholarly Paper ID 1677653, Social Science Research Network
- Bhagwan Chowdhry, 2019, Investing for impact. Review of Financial Studies
- Shawn Cole, 2020, Long-Run Returns to Impact Investing in Emerging Markets and Developing Economies
- Pedro Matos, 2021, Responsible Institutional Investing Around the World
- Paul-Henri Moisson, 2020, Ethics and impact investment
- John Morgan, 2019, Corporate provision of public goods, Management Science, 65, 4489, 10.1287/mnsc.2018.3137 · DOI
- Martin Oehmke, 2019, A theory of socially responsible investment
- Ottoni-Wilhelm, 2017, Why do people give? testing pure and impure altruism, American Economic Review, 107, 3617, 10.1257/aer.20141222 · DOI
- Lubos Pastor, 2020, Mutual Fund Performance and Flows during the COVID-19 Crisis, The Review of Asset Pricing Studies, 10, 791, 10.1093/rapstu/raaa015 · DOI · Paper page
- Lasse Pedersen, 2019, Responsible investing: The esgefficient frontier
- Benjamin N Roth, 2020, Impact investing: A theory of financing social enterprises
- Andrew Roy, 1951, Some thoughts on the distribution of earnings, Oxford Economic Papers, 3, 135, 10.1093/oxfordjournals.oep.a041827 · DOI
- Michael Sattinger, 1979, Differential rents and the distribution of earnings, Oxford Economic Papers, 31, 60, 10.1093/oxfordjournals.oep.a041437 · DOI
- Siew Teoh, 1999, The Effect of Socially Activist Investment Policies on the Financial Markets: Evidence from the South African Boycott, The Journal of Business, 72, 35, 10.1086/209602 · DOI · Paper page
- Anjan Thakor, 2020, Higher purpose, incentives, and economic performance
- Us Sif Foundation, 2018, Report on us sustainable, responsible, and impact investing strategies
- Abhishek Varma, 2012, Socially Responsible Funds and Market Crises. SSRN Scholarly Paper ID 2142343, Social Science Research Network
Cited by
Sorted by citations
A Theory of Socially Responsible InvestmentPreprint
Oehmke, M., & Opp, M. M. (2020) · Social Science Research Network · doi:10.2139/ssrn.3467644 · Cited by 208
“Green and Roth (2021) confirm this prediction using an assignment matching model.”
InfluentialA Review on ESG Investing: Investors’ Expectations, Beliefs and PerceptionsPreprint
Kräussl, R., Oladiran, T., & Stefanova, D. (2023) · Social Science Research Network · doi:10.2139/ssrn.4123999 · Cited by 167
A review on ESG investing: Investors' expectations, beliefs and perceptions
Kräussl, R., Oladiran, T., & Stefanova, D. (2024) · Journal of Economic Surveys · doi:10.1111/joes.12599 · Cited by 175
Broccardo, E., Hart, O., & Zingales, L. (2020) · Journal of Political Economy · doi:10.1086/720516 · Cited by 327
“…put pressure on management to adopt a value-maximizing strategy, under the assumption that investors are purely selfish. some market power, while Green and Roth (2020) and Oehmke and Opp (2022) analyze optimal investment choices for large socially responsible investors who fund…”
BackgroundAngelis, T. D., Tankov, P., & Zerbib, O. D. (2022) · Management Science · doi:10.1287/mnsc.2022.4472 · Cited by 151
“Besides, impact investing may go beyond climate screening, for example, by favoring brown companies that are inclined to green up quickly or small green companies that would benefit from financial support to grow (Green and Roth, 2020; Heeb and K¨olbel, 2020).”
Metadata
- Authors
- Green, D., & Roth, B.
- Affiliations
- Harvard University (US)
- University of Minnesota (US)
- Corresponding author
- Green, Daniel
- ORCID
- Roth, Benjamin
- Venue
- The Journal of Finance
- Publisher
- Elsevier BV
- Published
- 2020
- Volume
- 80
- Issue
- 2
- Pages
- 755-781
- ISSN
- 0022-1082 (ISSN-L)
- OpenAlex
- W4406710300
- Cited by
- 125
- References
- 0
- Citations by year
- 2026: 19 · 2025: 25 · 2024: 26 · 2023: 20 · 2022: 19 · 2021: 7 · 2020: 6
- FWCI
- 40.22
- Type
- journal article
- Language
- en
- Open access
- green
- doi.org
- Locations
- The Journal of Finance (publishedVersion)
- SSRN Electronic Journal (acceptedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Finance › Community Development and Social Impact
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
- Social Sciences › Economics, Econometrics and Finance › Finance › Sustainable Finance and Green Bonds
- Keywords
- socially responsible investment, asset allocation, social values, investor competition, social welfare (welfare economics), impact investing, firm profitability, financial returns
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
How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
- This page
- CoChat. (2026). Citation check: The Allocation of Socially Responsible Capital. https://app.cochat.ai/papers/10.2139/ssrn.3737772
- The paper
- Green, D., & Roth, B. (2020). The Allocation of Socially Responsible Capital. The Journal of Finance. https://doi.org/10.2139/ssrn.3737772
