TY - JOUR
T1 - Socially Responsible Investment and Market Performance
T2 - The Case of Energy and Resource Companies
AU - Brzeszczynski, Janusz
AU - Ghimire, Binam
AU - Jamasb, Tooraj
AU - McIntosh, Graham
PY - 2019/9/1
Y1 - 2019/9/1
N2 - Do financial markets reward the energy and resource companies for adopting socially responsible practices? In this study, we investigate the stock market performance of major international energy and resource firms, classified within the socially responsible investment (SRI) category, from 2005 to 2016. We simulate investments in the portfolios of the SRI energy and resource companies stocks during this 11-year period and we further assess their risk-adjusted performance. The returns of the energy and resource SRI portfolio as a whole were neither consistently superior nor inferior to those of the benchmark indices. However, there exist substantial differences across the individual sub-sectors. The overall results show that markets do not reward or penalize the energy and resource firms for their SRI attitudes. We also find that the crude oil price consistently had a significant influence on the stock returns of the SRI energy and resource companies.
AB - Do financial markets reward the energy and resource companies for adopting socially responsible practices? In this study, we investigate the stock market performance of major international energy and resource firms, classified within the socially responsible investment (SRI) category, from 2005 to 2016. We simulate investments in the portfolios of the SRI energy and resource companies stocks during this 11-year period and we further assess their risk-adjusted performance. The returns of the energy and resource SRI portfolio as a whole were neither consistently superior nor inferior to those of the benchmark indices. However, there exist substantial differences across the individual sub-sectors. The overall results show that markets do not reward or penalize the energy and resource firms for their SRI attitudes. We also find that the crude oil price consistently had a significant influence on the stock returns of the SRI energy and resource companies.
KW - Crude Oil Price
KW - Energy and Resource Companies Stocks
KW - Socially Responsible Investment (SRI)
KW - SRI Stocks
KW - Stock Market Performance
KW - Stock Market Returns
UR - https://www.scopus.com/pages/publications/85077123566
U2 - 10.5547/01956574.40.5.jbrz
DO - 10.5547/01956574.40.5.jbrz
M3 - Article
SN - 0195-6574
VL - 40
SP - 17
EP - 72
JO - Energy Journal
JF - Energy Journal
IS - 5
ER -