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Challenges In Performance Metrics In Socially Responsible Investments

Author

Listed:
  • Kuti Monika

    (University of Pecs, Hungary,)

  • Szasz Erzsebet

    (Partium Christian University, Oradea, Romania,)

Abstract

Sustainability issues have been penetrating the financial world over the decades at corporate and sector levels. In the field of sustainable finance, socially responsible investments (SRI) are a dynamically evolving segment which has become a special industry in asset allocation and investments out of a niche movement. This article aims to highlight the trends, investors' motives and performances of these investments. It concludes that controversies around the terminology, performance metrics and return of socially responsible investments, have not been resolved in academic literature yet.

Suggested Citation

  • Kuti Monika & Szasz Erzsebet, 2014. "Challenges In Performance Metrics In Socially Responsible Investments," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 919-927, July.
    • Handle: RePEc:ora:journl:v:1:y:2014:i:1:p:919-927
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    References listed on IDEAS

    as
    1. Derwall, Jeroen & Koedijk, Kees & Ter Horst, Jenke, 2011. "A tale of values-driven and profit-seeking social investors," Journal of Banking & Finance, Elsevier, vol. 35(8), pages 2137-2147, August.
    2. Darren D. Lee & Jacquelyn E. Humphrey & Karen L. Benson & Jason Y. K. Ahn, 2010. "Socially responsible investment fund performance: the impact of screening intensity," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(2), pages 351-370, June.
    3. Derwall, J. & Günster, N.K. & Bauer, R. & Koedijk, C.G., 2004. "The Eco-Efficiency Premium Puzzle," ERIM Report Series Research in Management ERS-2004-043-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Renneboog, L.D.R. & Ter Horst, J.R. & Zhang, C., 2006. "Is Ethical Money Financially Smart?," Other publications TiSEM e08f916d-d7d5-4a3d-8d05-7, Tilburg University, School of Economics and Management.
    5. Patricia Crifo & Vanina Forget, 2013. "Think Global, Invest Responsible: Why the Private Equity Industry Goes Green," Journal of Business Ethics, Springer, vol. 116(1), pages 21-48, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    socially responsible investments; portfolio performance; sustainable development;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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