Are ethical investments good?

Gariet WS Chow, Robert B Durand and SzeKee Koh
Additional contact information
Gariet WS Chow: The University of Western Australia, Crawley, WA, Australia
Robert B Durand: Curtin University, Bentley, WA, Australia
SzeKee Koh: Singapore Institute of Technology, Singapore; The University of Western Australia, Crawley, WA, Australia

Australian Journal of Management, 2014, vol. 39, issue 4, 645-665

Abstract: Our study considers whether ethical investments are also good investments. In contrast with previous studies, we utilize long-run event study methodology to examine abnormal returns associated with firms being included in, and dropped from, the MSCI KLD400 Social Index (MSCI KLD400). We find that there are positive and statistically significant long-run abnormal returns for firms being included in the MSCI KLD400. These abnormal returns are associated with higher shareholdings by institutional investors (who are subject to higher public scrutiny), higher analyst coverage and higher growth opportunities.

Keywords: MSCI KLD400 Social Index; portfolio choice; socially responsible investing (search for similar items in EconPapers)
JEL-codes: G12 G14 M14 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0312896213516327 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:39:y:2014:i:4:p:645-665

DOI: 10.1177/0312896213516327

Access Statistics for this article

More articles in Australian Journal of Management from Australian School of Business
Bibliographic data for series maintained by SAGE Publications ().