Are Ethical Investments Good?

Our study considers whether ethical investments are also good investments. In contrast with previous studies, we utilize long-run event study methodology to examine abnormal returns associated with firms being included in, and dropped from, the MSCI KLD400 Social Index (MSCIKLD400). We find that the...

Full description

Bibliographic Details
Main Authors: Chow, G., Durand, Robert, Koh, S.
Format: Journal Article
Published: Sage Publications 2014
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/4286
_version_ 1848744472878252032
author Chow, G.
Durand, Robert
Koh, S.
author_facet Chow, G.
Durand, Robert
Koh, S.
author_sort Chow, G.
building Curtin Institutional Repository
collection Online Access
description Our study considers whether ethical investments are also good investments. In contrast with previous studies, we utilize long-run event study methodology to examine abnormal returns associated with firms being included in, and dropped from, the MSCI KLD400 Social Index (MSCIKLD400). We find that there are positive and statistically significant long-run abnormal returns for firms being included in the MSCI KLD400. These abnormal returns are associated with higher shareholdings by institutional investors (who are subject to higher public scrutiny), higher analyst coverage and higher growth opportunities.
first_indexed 2025-11-14T06:02:01Z
format Journal Article
id curtin-20.500.11937-4286
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T06:02:01Z
publishDate 2014
publisher Sage Publications
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-42862017-09-13T14:47:34Z Are Ethical Investments Good? Chow, G. Durand, Robert Koh, S. socially responsible investing MSCI KLD400 Social Index portfolio choice Our study considers whether ethical investments are also good investments. In contrast with previous studies, we utilize long-run event study methodology to examine abnormal returns associated with firms being included in, and dropped from, the MSCI KLD400 Social Index (MSCIKLD400). We find that there are positive and statistically significant long-run abnormal returns for firms being included in the MSCI KLD400. These abnormal returns are associated with higher shareholdings by institutional investors (who are subject to higher public scrutiny), higher analyst coverage and higher growth opportunities. 2014 Journal Article http://hdl.handle.net/20.500.11937/4286 10.1177/0312896213516327 Sage Publications restricted
spellingShingle socially responsible investing
MSCI KLD400 Social Index
portfolio choice
Chow, G.
Durand, Robert
Koh, S.
Are Ethical Investments Good?
title Are Ethical Investments Good?
title_full Are Ethical Investments Good?
title_fullStr Are Ethical Investments Good?
title_full_unstemmed Are Ethical Investments Good?
title_short Are Ethical Investments Good?
title_sort are ethical investments good?
topic socially responsible investing
MSCI KLD400 Social Index
portfolio choice
url http://hdl.handle.net/20.500.11937/4286