The independent effects of environmental, social and governance initiatives on the performance of UK firms

Humphrey , Jacquelyn E., Lee, Darren D. and Shen, Yaokan (2012) The independent effects of environmental, social and governance initiatives on the performance of UK firms. Australian Journal of Management, 37 2: 135-151. doi:10.1177/0312896211410081


Author Humphrey , Jacquelyn E.
Lee, Darren D.
Shen, Yaokan
Title The independent effects of environmental, social and governance initiatives on the performance of UK firms
Journal name Australian Journal of Management   Check publisher's open access policy
ISSN 1327-2020
0312-8962
Publication date 2012-08
Sub-type Article (original research)
DOI 10.1177/0312896211410081
Volume 37
Issue 2
Start page 135
End page 151
Total pages 17
Place of publication London, United Kingdom
Publisher Sage Publications
Collection year 2013
Language eng
Abstract We investigate the effect of environmental, social and governance factors on the financial performance of UK firms. We examine the three factors separately to disentangle the relation of each with performance. We find no difference in the performance of firms with high or low environmental, social or governance rankings. The firms also do not differ in their systematic risks, book-to-market ratios or momentum exposures. However, high-rated firms are consistently larger. Our findings demonstrate that UK investors can incorporate environmental, social or governance criteria into their investment strategies without incurring any significant cost (or benefit) in terms of risk or return.
Keyword Best of sector
Corporate social performance
Environment
Governance
Social
Sustainability
UK
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2013 Collection
UQ Business School Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 2 times in Thomson Reuters Web of Science Article | Citations
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Created: Mon, 17 Oct 2011, 13:55:03 EST by Darren Lee on behalf of UQ Business School