The Performance of Socially Responsible Investment - A Review of Scholarly Studies Published 2008-2010
Stockholm School of Economics; Nuwa AB
October 17, 2011
This report explores whether socially responsible investment (SRI) generates higher, lower or similar risk adjusted financial return compared with conventional investment. 21 academic studies are reviewed. Seven studies conclude that SRI have similar performance relative to their conventional peers. Five studies report that SRI outperforms conventional investment. Three studies find that SRI generates inferior performance relative to its conventional peers. Finally, six studies report mixed results. We can conclude that results point in all different directions, and that there is no clear link between SRI and financial performance. Our results implicates that it would be unwise to make general statements about the performance of SRI based on only one or a few studies.
Number of Pages in PDF File: 19
Keywords: socially responsible investment, risk adjusted return on investment, ESG
JEL Classification: G00, M14
Date posted: October 24, 2011