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dc.contributor.authorTrinks, P. J.
dc.contributor.authorScholtens, B.
dc.date.accessioned2015-06-15T08:40:02Z
dc.date.available2015-06-15T08:40:02Z
dc.date.issued2017-01-27
dc.identifier.citationTrinks , P J & Scholtens , B 2017 , ' The opportunity cost of negative screening in socially responsible investing ' Journal of Business Ethics , vol. 140 , no. 2 , pp. 193-208 . https://doi.org/10.1007/s10551-015-2684-3en
dc.identifier.issn0167-4544
dc.identifier.otherPURE: 194894843
dc.identifier.otherPURE UUID: 797aefdd-9c5d-4cce-a6e3-aedbe65cd8f6
dc.identifier.otherScopus: 84929428537
dc.identifier.urihttp://hdl.handle.net/10023/6822
dc.description.abstractThis paper investigates the impact of negative screening on the investment universe as well as on financial performance. We come up with a novel identification process and as such depart from mainstream socially responsible investing literature by concentrating on individual firms’ conduct and by studying a much wider range of issues. Firstly, we study the size and financial performance of fourteen potentially controversial issues: abortion, adult entertainment, alcohol, animal testing, contraceptives, controversial weapons, fur, gambling, genetic engineering, meat, nuclear power, pork, (embryonic) stem cells, and tobacco. We investigate an international sample of more than 1,600 stocks for more than twenty years. We then analyze the impact of applying negative screens to a market portfolio. Our findings suggest that the choice for negative screening strategies does matter for the size of the investment universe as well as for risk-adjusted return performance. Investing in controversial stocks in many cases results in additional risk-adjusted returns, whereas excluding them may reduce financial performance. These findings suggest that there are opportunity costs to negative screening.
dc.format.extent16
dc.language.isoeng
dc.relation.ispartofJournal of Business Ethicsen
dc.rightsCopyright The Author(s) 2015. This article is published with open access at Springerlink.com. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.en
dc.subjectControversial investmentsen
dc.subjectMarket capitalizationen
dc.subjectResponsible investingen
dc.subjectRisk-adjusted returnsen
dc.subjectScreeningen
dc.subjectHG Financeen
dc.subjectHJ Public Financeen
dc.subjectH Social Sciences (General)en
dc.subject3rd-NDASen
dc.subject.lccHGen
dc.subject.lccHJen
dc.subject.lccH1en
dc.titleThe opportunity cost of negative screening in socially responsible investingen
dc.typeJournal articleen
dc.description.versionPublisher PDFen
dc.contributor.institutionUniversity of St Andrews.School of Managementen
dc.contributor.institutionUniversity of St Andrews.Centre for Responsible Banking and Financeen
dc.identifier.doihttps://doi.org/10.1007/s10551-015-2684-3
dc.description.statusPeer revieweden


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