RT Journal Article
SR Electronic
T1 Finding the [Financial] Cost of Socially Responsible Investing
JF The Journal of Investing
FD Institutional Investor Journals
SP 54
OP 70
DO 10.3905/joi.2007.694762
VO 16
IS 3
A1 Dylan B. Minor
YR 2007
UL https://pm-research.com/content/16/3/54.abstract
AB Socially responsible investing (SRI) is an increasingly important investment issue, gaining popularity among both institutional and individual investors. In the past, SRI research has almost exclusively focused on whether or not there is a financial “cost” in SRI. With rare exception, no material cost has been observed. We find if we examine SRI in terms of total costs and benefits (i.e., financial and social), there may not be a cost, but when considering only financial cost, there must be a cost in SRI. We examine several economic principles that require such cost, and estimate what this cost might be. Finally, we address why we have not “seen” a financial cost in SRI thus far.TOPICS: ESG investing, equity portfolio management, security analysis and valuation