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Scientific Article details

Title Corporate social performance and portfolio management
ID_Doc 73242
Authors Teti, E; Dell'Acqua, A; Etro, LL; Andreoletti, LB
Title Corporate social performance and portfolio management
Year 2015
Published Journal Of Management Development, 34, 9
DOI 10.1108/JMD-04-2015-0062
Abstract Purpose - The purpose of this paper is to assess the existence of a relationship between socially responsible behavior of companies and price trends of their stocks. Design/methodology/approach - The analysis is conducted by empirically testing data of environmental, social and governance ratings of a sample of European firms between December 2005 and December 2010. A disaggregate analysis is also performed to infer whether a specific contribution of all the different factors that make a business socially responsible can be observed in the value generation process. Findings - The results show that the application of a sustainable approach are successful in creating value, both to the investor and the issuer companies. Research limitations/implications - Findings of this work are significant with respect to portfolio management, because they suggest, on one hand, the myopia of a short-term approach (short-termism), and on the other hand, the importance of sustainable investing. Originality/value - This paper focusses on the integration that has led many international groups to explicitly include extra-financial risk factors in their decision-making processes, by applying the by the four-factor model on a brand new data set.
Author Keywords Corporate social responsibility; Portfolio management
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Emerging Sources Citation Index (ESCI)
EID WOS:000397120000007
WoS Category Management
Research Area Business & Economics
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