Socially Responsible Investment Returns and News: Evidence from Asia

DOI:10.1002/csr.1833

50 Pages Posted: 19 Aug 2019

See all articles by Meng-Feng (Stephane) Yen

Meng-Feng (Stephane) Yen

Department of Accountancy and Graduate Institute of Finance, National Cheng Kung University

Yung-Ming Shui

National Chengchi University (NCCU) - College of Commerce

Chi-Feng Wang

National Kaohsiung University of Science and Technology

Date Written: August 15, 2019

Abstract

We set out in this study to examine: (i) whether ‘socially responsible investment’ (SRI) portfolios can outperform less-SRI portfolios in the emerging Asian stock markets; and (ii) whether investors within these emerging markets achieve awareness of SRI through publicly available news. Based on 2009-2013 data, we find that SRI portfolios tend to perform better in Japan. However, firms in the emerging Asian markets do not earn rewards for superior CSR practices. We also find that investors in the emerging Asian markets are indeed aware of SRI through public CSR news releases; in particular, investors in these markets reward high ESG-rated firms for their good CSR practices advertised through such news releases, relative to those with no news releases.

Keywords: Corporate social responsibility, Socially responsible investment, News advertisement effect, Individual investors

JEL Classification: G11, G14, G39

Suggested Citation

Yen, Meng-Feng (Stephane) and Shui, Yung-Ming and Wang, Chi-Feng, Socially Responsible Investment Returns and News: Evidence from Asia (August 15, 2019). DOI:10.1002/csr.1833. Available at SSRN: https://ssrn.com/abstract=3437848

Meng-Feng (Stephane) Yen

Department of Accountancy and Graduate Institute of Finance, National Cheng Kung University ( email )

1 Univeristy Road
East District
Tainan City, Taiwan 70101
Taiwan
(06) 275-7575 ext 53400 (Phone)
(06) 2744104 (Fax)

HOME PAGE: http://myweb.ncku.edu.tw/~yenmf/

Yung-Ming Shui (Contact Author)

National Chengchi University (NCCU) - College of Commerce ( email )

Taiwan

Chi-Feng Wang

National Kaohsiung University of Science and Technology ( email )

2 Jhuoyue Rd.
Nanzih
Kaohsiung City, Taiwan 811
Taiwan

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