Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Investing
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a Demo
  • Log in
The Journal of Investing

The Journal of Investing

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
Article
Open Access

Editor’s Letter

Brian R. Bruce
The Journal of Investing ESG Special Issue 2019, 28 (2) 1-2; DOI: https://doi.org/10.3905/joi.2019.28.2.001
Brian R. Bruce
Editor-in-Chief
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Article
  • Info & Metrics
  • PDF
Loading

The focus of our special issue is the continuing discussion regarding ESG (environmental, social, and governance) factors and their impact on the future financial performance of companies. To begin our discussions, Filbeck, Filbeck, and Zhao explore whether firms rated highly by Sustainalytics based on ESG criteria are rewarded with superior long-term stock price performance. They find that overall, investors are not hurt by following an ESG philosophy, with the market rewarding firms for good governance. Alford explains that investors need to determine which ESG issues are important for them, and how these issues should be reflected in a portfolio. He presents several considerations for investors regarding use of ESG factors in the investment process, evaluation of companies with regard to their ESG profile, level of active risk (tracking error) relative to the policy benchmark, monitoring an ESG strategy over time, and articulating an investment thesis for an ESG strategy.

Next, Breedt, Ciliberti, Gualdi, and Seager test the proposition that making an allowance for ESG criteria within an equity portfolio enhances returns, by incorporating ESG criteria into a worldwide market neutral portfolio using an “off-the-shelf” third-party database of individual security ratings. They conclude that ESG should not be considered as a unique equity factor. Clark, Krieger, and Mauck examine the link between corporate social responsibility (CSR), as measured by the Kinder, Lydenberg, and Domini Research and Analytics Inc. (KLD) data, and the likelihood that a firm experiences an extreme return in a given year. They find that CSR is negatively related to the likelihood of a firm experiencing an extreme return.

As we continue, Dong, Feng, Parida, and Wang study the performance consequences of exposure to CSR through stock holdings for mutual funds. Conclusions include that investors tend to avoid low-CSR stocks due to either social norms against these stocks or risk of underperformance of these investments when overall trust in corporations suffers a negative shock. Reed, Cort, and Yonavjak diagnose the lack of premiums in the green bonds market as a result of the inability to differentiate net environmental benefits among bonds. They present an idealized rating framework and contrast currently proposed green bond rating systems from major firms.

To conclude our issue, Dolvin, Fulkerson, and Krukover analyze the Morningstar sustainability metric. They present several findings regarding funds with high sustainability scores: These funds have about the same risk-adjusted returns (i.e., alphas) as other funds; the vast majority of these funds are concentrated in the large-cap space; and these funds generally mimic those of self-proclaimed SRI funds. Last, they find that funds that specifically designate and market a social mandate experience more stable cash flows.

As always, we welcome your submissions. We value your comments and suggestions, so please email us at journals{at}investmentresearch.org.

Brian Bruce

Editor-in-Chief

  • © 2019 Pageant Media Ltd

PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Investing: 28 (2)
The Journal of Investing
Vol. 28, Issue 2
ESG Special Issue 2019
  • Table of Contents
  • Index by author
  • Complete Issue (PDF)
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Investing.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Editor’s Letter
(Your Name) has sent you a message from The Journal of Investing
(Your Name) thought you would like to see the The Journal of Investing web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Editor’s Letter
Brian R. Bruce
The Journal of Investing Jan 2019, 28 (2) 1-2; DOI: 10.3905/joi.2019.28.2.001

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Editor’s Letter
Brian R. Bruce
The Journal of Investing Jan 2019, 28 (2) 1-2; DOI: 10.3905/joi.2019.28.2.001
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
  • Info & Metrics
  • PDF

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar

More in this TOC Section

  • Editor’s Letter
  • COMMENTARY: Last Page
  • Editor’s Letter
Show more Article
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2021 Pageant Media Ltd | All Rights Reserved | ISSN: 1068-0896 | E-ISSN: 2168-8613

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy