IDEAS home Printed from https://ideas.repec.org/p/cfi/jseres/cj055.html
   My bibliography  Save this paper

Is Socially Responsible Investment Profitable?

Author

Listed:
  • Jiro Yoshida

    (Faculty of Economics, The University of Tokyo)

Abstract

In this paper, I review theory and empirical results on Socially Responsible Investment (SRI), and analyze returns to SRI in Japan. Theoretically,SRI can deliver higher returns than standard benchmark portfolios, but such higher returns are likely to be temporary. The shareholders of a company with a high standard of Corporate Social Responsibility can earn high returns while the market valuation of the company is revised upward. However, return reverts to the original level or lower afterwards. Japanese SRI data support this hypothesis: The SRI outperformed TOPIX in the 1990?s until SRI became widely recognized, but its returns are indistinguishable from those to TOPIX after 2000. Theoretical predictions in this paper are helpful in understanding mixed results on SRI returns in the past empirical research.

Suggested Citation

  • Jiro Yoshida, 2008. "Is Socially Responsible Investment Profitable?," CARF J-Series CARF-J-055, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    • Handle: RePEc:cfi:jseres:cj055
    as

    Download full text from publisher

    File URL: http://www.carf.e.u-tokyo.ac.jp/pdf/workingpaper/jseries/56.pdf
    Download Restriction: no
    ---><---

    More about this item

    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:cfi:jseres:cj055. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/catokjp.html .

    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.