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.
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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
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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
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