Socially Conscious Investors Mitigating Stock Market Losses in A Time of Crisis: Evidence from the COVID-19 Crash
Ruoke Yang and
Iva Koci
Additional contact information
Ruoke Yang: Imperial College Business School, Imperial College London, London SW7 2AZ, UK2U.S. Securities and Exchange Commission, Washington, DC 20549, USA
Iva Koci: Imperial College Business School, Imperial College London, London SW7 2AZ, UK3King’s Business School, King’s College London, London WC2R 2LS, UK
Quarterly Journal of Finance (QJF), 2025, vol. 15, issue 01, 1-39
Abstract:
Recent years have witnessed a surge in investors with a socially responsible investment mandate. We study stock returns associated with this practice in the COVID-19 crash and surrounding months. Stocks with greater socially responsible investor demand experience superior returns, lower volatility, and weaker market valuation decline during the crash. These effects disappear post-crash. No differences are found with respect to sales, gross profitability, and operating income as well as expectations about the long-term growth rate of earnings per share. These results suggest that socially responsible investors can act as a moderating force by mitigating losses in a time of crisis.
Keywords: Pandemic; COVID-19; socially responsible investing (search for similar items in EconPapers)
JEL-codes: G11 G12 G23 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:
Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2010139225500016
Access to full text is restricted to subscribers
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:wsi:qjfxxx:v:15:y:2025:i:01:n:s2010139225500016
Ordering information: This journal article can be ordered from
DOI: 10.1142/S2010139225500016
Access Statistics for this article
Quarterly Journal of Finance (QJF) is currently edited by Fernando Zapatero
More articles in Quarterly Journal of Finance (QJF) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().