IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v69y2024ics0275531924000217.html
   My bibliography  Save this article

Socially responsible investments: doing good while doing well in developed versus emerging markets?

Author

Listed:
  • Lestari, Jenjang Sri
  • Frömmel, Michael

Abstract

We investigate the performance of Socially Responsible Investments (SRI) in both developed and emerging countries. We do so by examining the performance of self-constructed equity portfolios based on SRI's mutual funds' current and historical holdings. Based on the current holdings, the SRI equity portfolios from emerging and developed countries significantly outperform their benchmarks, except for the Japanese stock portfolio. We mitigate the current holdings approach's potential look-ahead and survivorship bias by employing the historical holdings approach. The results change dramatically in developed markets: the outperformance of SRI is not significant in the U.S. – the dominant developed markets in the sample – and Japan. In emerging markets, the SRI's outperformance remains significant. It outperforms in both BRICS and Non-BRICS, and in terms of income, it consistently outperforms in the markets of middle-income countries.

Suggested Citation

  • Lestari, Jenjang Sri & Frömmel, Michael, 2024. "Socially responsible investments: doing good while doing well in developed versus emerging markets?," Research in International Business and Finance, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:riibaf:v:69:y:2024:i:c:s0275531924000217
    DOI: 10.1016/j.ribaf.2024.102229
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531924000217
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2024.102229?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Socially Responsible Investment (SRI); Developed markets; Emerging markets; BRICS; Mutual fund holdings; Current holdings; Historical holdings; Look-ahead bias; Survivorship bias;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:69:y:2024:i:c:s0275531924000217. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.