Key challenges facing the socially responsible investment (SRI) sector in South Africa

The relative importance of ethics, environmental, social and governance criteria

“…This was done to address a gap in the literature, as most studies on the topic only investigate the views of institutional investors (Eccles et al, 2009;Herringer et al, 2009;Ballestero et al, 2012). The findings of this study will assist South African asset owners to reformulate their investment strategies according to the ethical and ESG preferences of their members.…”

Proceedings of the 7th International Conference on Business and Finance

“…A factor in the APT is priced when there is a risk premium aligned with such risk factor of the asset (Jecheche 2012). The risk premium can be identified through the use of a two-pass regression model, which is extensively used in the literature (Chen 1983;Roll & Ross 1980).…”

“…The JSE SRI index was created because of the immense interest shown by investors and money managers who were looking for greener investment opportunities (Herringer, Firer & Viviers 2009), and it has become an essential investment style within the South African investment community (Brzeszczyffiski & McIntosh 2014). Companies in the SRI index go through a screening process to determine whether they comply with the social responsible requirements, implying that the SRI index tends to have different characteristics that might predispose different asset return behaviour (Nguyen 2010).…”

The pricing of inflation and exchange rate risks on the South African socially responsible investment index: An application of the APT model

“…The index has developed in recent years as a vigorous and rapidly growing segment of the JSE (2014). The JSE SRI index was created because of the immense interest shown by investors and money managers who were looking for greener investment opportunities (Herringer, Firer & Viviers 2009), and it has become an essential investment style within the South African investment community (Brzeszczyński & McIntosh 2014). Companies in the SRI index go through a screening process to determine whether they comply with the social responsible requirements, implying that the SRI index tends to have different characteristics that might predispose different asset return behaviour (Nguyen 2010).…”