The Performance of Socially Responsible Investments

The paper aims to annotate how selection of equity securities can be made by incorporating sustainability into analysis, and to present review of performance evidence of such an investment strategy. The authors reviewed the scholarly literature and contemporary research on what constitutes a socia...

Full description

Saved in:
Bibliographic Details
Main Authors: Milica Latinovic, Tijana Obradovic
Format: Article
Language:English
Published: Cracow University of Economics 2013-06-01
Series:Entrepreneurial Business and Economics Review
Subjects:
Online Access:https://eber.uek.krakow.pl/index.php/eber/article/view/10
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The paper aims to annotate how selection of equity securities can be made by incorporating sustainability into analysis, and to present review of performance evidence of such an investment strategy. The authors reviewed the scholarly literature and contemporary research on what constitutes a socially responsible investment, what risks are associated with such an investment, and what evidence of its performance are in different markets. They hypothesized that socially responsible investments underperform non-socially aware investments. This paper provides review of relevant corporate sustainability indicators used in investment analysis. Also, this paper is trying to present evidence of a link between corporate social responsibility and shareholder value. Research of performance of socially responsible investment equity indices and funds; mostly show that they underperform conventional ones. This paper aims to examine existing findings on socially responsible investing, and to propose modification of corporate strategies accordingly. This paper provides various insights into implications when incorporating environment, social responsibility, and corporate governance into investment strategies.
ISSN:2353-8821