Socially Responsible Investing: The Eco-Efficiency Premium Puzzle
Does socially responsible investing (SRI) hurt (or help) returns on a risk adjusted basis? Of course theoretically it seemingly should lower pecuniary returns, but empirically it seems that every researcher has a different answer. Now Derwall, Guenster, Bauer, and Koedijk present their views on the argument. The authors form portfolios based on Innovest eco-efficiency scores. The finding? “After controlling for … [ Read more ]
Content: Article | Authors: Jeroen M.M Derwall, Kees C.G. Koedijk, Nadja Guenster, Rob Bauer | Source: “Social Science Research Network (SSRN)” | Subjects: Finance, Social Responsibility (ESG) | Industry: Investing