TY - JOUR
T1 - The stocks at stake
T2 - Return and risk in socially responsible investment
AU - Galema, Rients
AU - Plantinga, Auke
AU - Scholtens, Bert
PY - 2008/12
Y1 - 2008/12
N2 - We relate US portfolio returns, book-to-market values and excess stock returns to different dimensions of socially responsible performance. We find that socially responsible investing (SRI) impacts on stock returns by lowering the book-to-market ratio and not by generating positive alphas. Our result is consistent with the theoretical work suggesting that SRI is reflected in demand differences between SRI and non-SRI stock. It also explains why so few studies are able to establish a link between alpha's and SRI.
AB - We relate US portfolio returns, book-to-market values and excess stock returns to different dimensions of socially responsible performance. We find that socially responsible investing (SRI) impacts on stock returns by lowering the book-to-market ratio and not by generating positive alphas. Our result is consistent with the theoretical work suggesting that SRI is reflected in demand differences between SRI and non-SRI stock. It also explains why so few studies are able to establish a link between alpha's and SRI.
KW - Corporate governance
KW - Corporate social responsibility
KW - Financial performance
KW - GMM
KW - Return
KW - Risk
KW - Stakeholder management
UR - http://www.scopus.com/inward/record.url?scp=55149118403&partnerID=8YFLogxK
U2 - 10.1016/j.jbankfin.2008.06.002
DO - 10.1016/j.jbankfin.2008.06.002
M3 - Article
AN - SCOPUS:55149118403
SN - 0378-4266
VL - 32
SP - 2646
EP - 2654
JO - Journal of Banking & Finance
JF - Journal of Banking & Finance
IS - 12
ER -
