ESG Factors in Corporate Bond Returns: Perspectives for Academic Research and Investors

Journal of Environmental Law and Policy 40 (4), 293-298

Posted: 6 Nov 2017 Last revised: 23 Feb 2018

See all articles by Demir Bektic

Demir Bektic

Deka Investment GmbH; Technical University of Darmstadt; International University of Monaco; IQ-KAP

Date Written: December 1, 2017

Abstract

In this article, I analyze the latest research on environmental, social, and governance (ESG) factors and corresponding corporate bond returns. Since the development of sustainable and ethical investing, there has been a vigorous and ongoing debate on whether ESG factors in corporate bond markets enhance returns. Unfortunately, empirical evidence on ESG factors in corporate bond markets is mixed and inconclusive. Some evidence supports positive returns, other evidence suggests a negative relation, and a third strand of the literature finds that the relation is unstable. However, research on this topic is seemingly contradictory and in this article, I address this disconnect in recent empirical research.

Keywords: ESG Factors, Socially Responsible Investing, Corporate Bonds, Sustainable Finance

JEL Classification: G11, G12, G13

Suggested Citation

Bektic, Demir, ESG Factors in Corporate Bond Returns: Perspectives for Academic Research and Investors (December 1, 2017). Journal of Environmental Law and Policy 40 (4), 293-298. Available at SSRN: https://ssrn.com/abstract=3065143

Demir Bektic (Contact Author)

Deka Investment GmbH ( email )

Mainzer Landstrasse 16
Frankfurt am Main, 60325
Germany

Technical University of Darmstadt ( email )

Universitaets- und Landesbibliothek Darmstadt
Magdalenenstrasse 8
Darmstadt, Hesse D-64289
Germany

International University of Monaco ( email )

2 Av Prince Hereditaire Albert
Stade Louis II/B
Monaco, Monaco MC-98000
United States

IQ-KAP ( email )

Frankfurt am Main
Germany

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