Have Corporate Controversies Helped or Hurt Performance

categories: ESG Products & Services, Research Paper, NAGY Zoltan, LEE Linda-Eling, EASTMAN Meggin Thwing

A Study of Three Portfolio Strategies

The broad effects of excluding entire business lines, typical of the more traditional values-aligned of a socially responsible portfolio, are generally understood. However, little research has been done on the performance implications of exclusions based on alleged corporate wrongdoing, though such exclusions are common. In this study, we investigate the risk and return impact of excluding companies involved in events negatively impacting stakeholders, testing three model portfolios with increasingly stringent criteria. This article has previously been published by the Journal of Environmental Investing 8, No. 1 (2017) and can be obtained at www.thejei.com.


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MSCI_Corporate Controversies and Performance_Aug 2017.pdf