Ethical Investing: Ethical Investors and Managers

Unknown author

120 citations0/0 files storedBusiness Ethics Quarterly

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Social Responsibility Reporting Financial Markets and Investment Strategies Ethics in Business and Education

Abstract

Abstract: “Ethical investing” is interpreted in the following paper to be the use of non-financial normative criteria by investors in the choice of securities for their portfolios. Ethical investors may aim at fulfilling duties they feel they have, possibly including increasing the amount of good in society through the consequences of their buying and selling behavior. The main duties are those of not-profiting from bad corporate behavior and of punishing bad (or rewarding good) firms. The main consequence desired is that managers manage corporations in a more ethical manner. But ethical investors (as opposed to some other kinds of investors who are also interested in normative issues) also aim at receiving returns based on the market risk of their investments. If the aim of managers is to maximize shareholder wealth, then ethical investors can fulfill their duties or achieve their desired consequences only if their trading activities affect shareholder wealth, i.e., share price. A theoretical argument is presented to show that this trading activity will not affect share price or return. In addition, reference is made to results of empirical studies which show that ethical stocks yield market returns, i.e., that the share price of ethical firms is unaffected by the actions of ethical investors. If the trading activity of ethical investors fails to affect share price and return, then these investors fail to fulfill any of their goals or to achieve their ends.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 120 citations exist upstream.

References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1970Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations, and States.2001Value Maximisation, Stakeholder Theory, and the Corporate Objective Function 1966Theory of the Firm 1997The Corporate Social Performance and Corporate Financial Performance Debate 2002Value Maximization, Stakeholder Theory, and the Corporate Objective Function 2001The Effect of Green Investment on Corporate Behavior 1993Doing Well While Doing Good? The Investment Performance of Socially Responsible Mutual Funds

Cited by

2009Investing in Peace: The Motivational Dynamics of Diaspora Investment in Post-Conflict Economies 2012Engaging diasporas as international entrepreneurs in developing countries: In search of determinants 2023The Impact of Sustainable Investing: A Multidisciplinary Review 2020Forecasting the Environmental, Social, and Governance Rating of Firms by Using Corporate Financial Performance Variables: A Rough Set Approach 2012Are Investors Willing to Sacrifice Cash for Morality?

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.