Responsible investing: New insights into performance and tastes

A.C.T. Borgers

Research output: ThesisDoctoral ThesisScientific

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Abstract

In this dissertation I study several financial aspects of socially responsible investing (SRI). It has become relevant due to the rise in assets under management with some form of social responsibility mandate over the past decades. SRI knows different dimensions; investors can (under-) overweight investments in firms with (un-) desirable business practices (e.g. excluding weapons manufacturers). On the other hand investors can engage with companies.

In Chapter 2, I show that it is possible to get abnormally large returns when overweighting firms with high CSR ratings. Trading on mispriced CSR information can be profitable when the market learns to correctly price this information. In Chapter 3, I show that norms and values have the potential to affect asset prices and that this form of tastes can affect mutual fund performance. Chapter 4 directly investigates tastes for socially responsible pension investments by investigating Dutch beneficiaries. Chapter 5 studies if institutional investors classified along SRI dimensions, respond differently to stock price news.
Original languageEnglish
QualificationDoctor of Philosophy
Awarding Institution
  • Tilburg University
Supervisors/Advisors
  • Koedijk, Kees, Promotor
  • ter Horst, Jenke, Promotor
  • Derwall, Jeroen, Co-promotor
Award date12 Sep 2014
Place of PublicationTilburg
Publisher
Print ISBNs9789056683962
Publication statusPublished - 12 Sep 2014

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Investing
Socially responsible investing
Investors
Corporate Social Responsibility
Business practices
Mandate
Mutual fund performance
Rating
Institutional investors
Stock prices
News
Asset prices
Assets
Social responsibility
Pensions

Cite this

Borgers, A. C. T. (2014). Responsible investing: New insights into performance and tastes. Tilburg: CentER, Center for Economic Research.
Borgers, A.C.T.. / Responsible investing : New insights into performance and tastes. Tilburg : CentER, Center for Economic Research, 2014. 185 p.
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Borgers, ACT 2014, 'Responsible investing: New insights into performance and tastes', Doctor of Philosophy, Tilburg University, Tilburg.

Responsible investing : New insights into performance and tastes. / Borgers, A.C.T.

Tilburg : CentER, Center for Economic Research, 2014. 185 p.

Research output: ThesisDoctoral ThesisScientific

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N2 - In this dissertation I study several financial aspects of socially responsible investing (SRI). It has become relevant due to the rise in assets under management with some form of social responsibility mandate over the past decades. SRI knows different dimensions; investors can (under-) overweight investments in firms with (un-) desirable business practices (e.g. excluding weapons manufacturers). On the other hand investors can engage with companies.In Chapter 2, I show that it is possible to get abnormally large returns when overweighting firms with high CSR ratings. Trading on mispriced CSR information can be profitable when the market learns to correctly price this information. In Chapter 3, I show that norms and values have the potential to affect asset prices and that this form of tastes can affect mutual fund performance. Chapter 4 directly investigates tastes for socially responsible pension investments by investigating Dutch beneficiaries. Chapter 5 studies if institutional investors classified along SRI dimensions, respond differently to stock price news.

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Borgers ACT. Responsible investing: New insights into performance and tastes. Tilburg: CentER, Center for Economic Research, 2014. 185 p. (CentER Dissertation Series).