Corporate social performance and portfolio management. Issue 9 (14th September 2015)

• Record Type: Journal Article
• Authors: Teti, Emanuele; Dell'Acqua, Alberto; Etro, Leonardo L.; Andreoletti, Linda Benedetta
• Is Part Of: Journal of management development. Volume 34:Issue 9(2015)
• Page Start: 1144
• Page End: 1160
• Publication Date: 2015-09-14
• Subjects: Corporate social responsibility -- Portfolio management; Executives -- Training of -- Periodicals; Middle managers -- Training of -- Periodicals; Management -- Study and teaching -- Periodicals; 658.407124
• DOI: 10.1108/JMD-04-2015-0062
• Languages: English
• ISSNs: 0262-1711

Abstract

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.