The Impact of Ethical Ratings on Canadian Security Performance: Portfolio Management and Corporate Governance Implications
AbstractOne approach that is gaining in popularity among portfolio managers uses ethical ratings, published by specialized research organizations, to screen securities for portfolio selection. Portfolio managers can thus gain a better understanding of the phenomenon and adopt a better and more consistent approach to ethical investment. By the same token, board of directors can measure the impact of their ethical policies on the market performance of the stock of their company. This paper provides new evidence about the impact of ethical ratings published in Canada on the risk-adjusted returns of the securities concerned, within the framework of a multi-factor Capital Asset Pricing Model, and gives an interpretation of the results from the perspective of portfolio composition and of corporate governance.
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Bibliographic InfoPaper provided by CIRPEE in its series Cahiers de recherche with number 0501.
Date of creation: 2005
Date of revision:
Ethical Ratings and Security Performance;
Other versions of this item:
- Fischer, Klaus & Khoury, Nabil, 2007. "The impact of ethical ratings on Canadian security performance: Portfolio management and corporate governance implications," The Quarterly Review of Economics and Finance, Elsevier, vol. 47(1), pages 40-54, March.
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
This paper has been announced in the following NEP Reports:
- NEP-ACC-2005-02-13 (Accounting & Auditing)
- NEP-ALL-2005-02-13 (All new papers)
- NEP-BEC-2005-02-15 (Business Economics)
- NEP-FIN-2005-02-13 (Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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