IDEAS home Printed from https://ideas.repec.org/h/pal/pmschp/978-3-319-90294-4_10.html
   My bibliography  Save this book chapter

Non-financial Rating and Socially Responsible Investment Reaction to Financial Turmoil

In: Contemporary Issues in Banking

Author

Listed:
  • Helen Chiappini

    (G. D’Annunzio University of Chieti-Pescara)

  • Gianfranco A. Vento

    (Regent’s University London
    Guglielmo Marconi University)

Abstract

The academic debate regarding the ability of socially responsible investments (SRIs) to outperform traditional investments has not yet concluded. SRIs’ outperformance (or underperformance) seams driven by many factors, such as the specificity of markets, timing, and types of investments (Wu et al., Manag Decis Econ 38:238–251, 2017; Revelli and Viviani, Bus Ethics Eur Rev 24(2):158–185, 2015). The aim of this chapter is thus to contribute to the academic debate investigating whether the Environmental, Social, and Governance (ESG) rating can be a proxy of companies resilient during financial turmoil. The methodology applied is the event study. The considered events are the recent Brexit announcement and the bankruptcy of Lehman Brothers. The SRI sample consists of 250 European socially responsible companies, while ESG ratings are from the Thomson Reuters ESG rating. This study contributes to the literature by showing that higher ESG ratings can be an expression of more resilient companies, especially during severe financial shocks. This finding is also useful for practitioners involved in portfolio investment selection.

Suggested Citation

  • Helen Chiappini & Gianfranco A. Vento, 2018. "Non-financial Rating and Socially Responsible Investment Reaction to Financial Turmoil," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Myriam García-Olalla & Judith Clifton (ed.), Contemporary Issues in Banking, chapter 0, pages 221-237, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-3-319-90294-4_10
    DOI: 10.1007/978-3-319-90294-4_10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:pal:pmschp:978-3-319-90294-4_10. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.