Premium
The performance of social responsible investing from retail investors' perspective: international evidence
Author(s) -
Badía Guillermo,
Ferruz Luis,
Cortez Maria Céu
Publication year - 2021
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/ijfe.2109
Subject(s) - perspective (graphical) , emerging markets , investment (military) , business , economics , financial market , financial economics , investment performance , finance , financial system , monetary economics , macroeconomics , return on investment , political science , artificial intelligence , production (economics) , politics , computer science , law
This paper investigates the performance of socially responsible investment (SRI) portfolios compared to conventional investments. Adopting a retail investor's perspective, we provide evidence of SRI financial performance at the worldwide level as well as at the regional level, for five regions (North America, Europe except UK, UK, Pacific region and emerging markets). Our results show that the performance of global SRI portfolios is higher than conventional investments. Moreover, we observe differences in the financial performance of regional SRI portfolios in the overall period and, in particular, in bear markets. These results suggest that country‐specific factors may affect the relationship between corporate social and financial performance.