Socially Responsible Firms and Stock Returns: Evidence from Japanese Constituents in FTSE4Good Index (Nikko Financial)

Abstract and Main Conclusion: This paper investigates whether market players appreciate socially responsible firms better than conventional ones with the view on corporate social responsibility factors.

Using a sample portfolio consisting of Japanese equities included in the FTSE4Good Index2, the paper estimates that the risk-adjusted performance is positive at a statistically significant level by applying regression analysis over the period 2001–2010 which includes the recent financial crises. Furthermore, robustness tests are performed by considering style biases, etc.

http://bdti.mastertree.jp/f/gqa1wsj6

On behalf of Nikko Financial Intelligence, Inc. (Kan Nakajima)

The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.