Conservation, Discrimination, and Salvation: Investors’ Social Concerns in the Stock Market

Hood, Matthew; Nofsinger, John R.; Varma, Abhishek

doi:10.1007/s10693-013-0162-6

Cited by 58 publications

(39 citation statements)

References 63 publications

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“…and at most a Master's degree, which suggests at least some understanding of ESG and the importance of sustainable issues in investment decision due to the easy dissemination information in the present age. Furthermore, investors with a higher income level tended to show a greater inclination towards ESG issues, which agrees with the previous literature [30,103]. Moreover, investors with higher investment amount invested in stock markets that had a greater preference for ESG issues.…”

Section: Discussionsupporting

confidence: 90%

“…However, studying the individual investors' inclination towards ESG issues is pivotal due to the inter-connectivity of finance and sustainability, and the influential role of the capital market in reconciling social and environmental equity, the development of ecological systems, and the stability of the financial system. A noteworthy starting point to explore sustainable finance is to recognize the ever-changing demands of heterogeneous investors and to understand their preferences regarding ESG-related issues [10,[28][29][30][31]. Empirical research is encouraged on ESG issues in emerging economies, as the dedication of the shareholders to these issues is intrinsic to sustainable development [32,33], and can be conducted by different market players [1].…”

Section: Introductionmentioning

confidence: 99%

“…Empirical research is encouraged on ESG issues in emerging economies, as the dedication of the shareholders to these issues is intrinsic to sustainable development [32,33], and can be conducted by different market players [1]. Although there have been studies of the utilitarian benefits to investors, there is a need for studies on the societal concerns of investors [30], and the individual weightings given to preferences for ESG criteria [34]. Individual weightings could be established by using quantitative methods to generalize the impacts of these dimensions on finance, investment, and sustainability [10].…”

Section: Introductionmentioning

confidence: 99%

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Environmental, Social and Governance (ESG) and Investment Decision in Bangladesh

2018

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Abstract:As a key facet of sustainable development, environmental, social and governance (ESG) discretion on stock market investment decision is gaining prevalence following the global financial crisis. ESG considers the sustainable return, risk reduction, and accountability aspects of investments. This study is an exploration of the individual stock market investors' preferences for ESG issues and the influence that purpose of investment has on investment decision-making, by testing the investment horizon as a moderator. The theoretical background was taken from the theory of planned behavior (TPB), goal setting theory (GST), and the behavioral asset pricing model (BAPM). The study uses the sequential mix method of research, starting with an interview followed by a survey, which was conducted among individual stock market investors in Bangladesh, using simple random sampling. Structural equation modeling (SEM) analysis was carried out using Warp PLS version 6.0. The key findings of this study delineate the effect of ESG issues and the purpose of investment on investment decision-making. The contribution of the study signifies the moderating role of the investment horizon, which confirms the importance of the long-term horizon as a time and risk diversification factor. The sparse utilization of the United Nations Global Compact (UNGC) (2004) and Thomson Reuters Corporate Responsibility Index (TRCRI) (2013) as measurement scales in this study is mentioned. This study has made practical contributions for managers, investors, and regulators.

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Section: Discussionsupporting

confidence: 90%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Environmental, Social and Governance (ESG) and Investment Decision in Bangladesh

2018

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“…Kumar et al 2011;Kiymaz 2012;Durand et al 2013a;Salaber 2013;Scholtens and Sievänen 2013;Hood et al 2014).…”

Section: Introductionunclassified

The Opportunity Cost of Negative Screening in Socially Responsible Investing

2015

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This paper investigates the impact of negative screening on the investment universe as well as on financial performance. We come up with a novel identification process and as such depart from mainstream socially responsible investing literature by concentrating on individual firms' conduct and by studying a much wider range of issues. Firstly, we study the size and financial performance of fourteen potentially controversial issues: abortion, adult entertainment, alcohol, animal testing, contraceptives, controversial weapons, fur, gambling, genetic engineering, meat, nuclear power, pork, (embryonic) stem cells, and tobacco. We investigate an international sample of more than 1,600 stocks for more than twenty years. We then analyze the impact of applying negative screens to a market portfolio. Our findings suggest that the choice for negative screening strategies does matter for the size of the investment universe as well as for risk-adjusted return performance. Investing in controversial stocks in many cases results in additional risk-adjusted returns, whereas excluding them may reduce financial performance. These findings suggest that there are opportunity costs to negative screening.

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“…The growing interest for SRI is fuelled by the demand from individual and institutional investors who want to fit their portfolios to their beliefs (Hood et al, 2013), and by the demand from institutional investors who are increasingly aware of a large literature showing that being involved in corporate social responsibility (CSR) can lead to superior economic and/or financial performance of firms through different mechanisms (Kitzmueller and Shimshack (2012), Renneboog et al (2008)). …”

Section: Accepted Manuscriptmentioning

confidence: 99%

How performance of risk-based strategies is modified by socially responsible investment universe?

Bertrand

Lapointe

2015

International Review of Financial Analysis

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Conservation, Discrimination, and Salvation: Investors’ Social Concerns in the Stock Market

Cited by 58 publications

References 63 publications

Environmental, Social and Governance (ESG) and Investment Decision in Bangladesh

Environmental, Social and Governance (ESG) and Investment Decision in Bangladesh

The Opportunity Cost of Negative Screening in Socially Responsible Investing

How performance of risk-based strategies is modified by socially responsible investment universe?

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