Evaluating ESG Investment Profitability: From the Perspective of Sophistication in Investment Decision-Making

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2024-09-11 DOI:10.1016/j.frl.2024.106105

引用次数: 0

Abstract

Environmental, Social, and Governance (ESG) investments are widely discussed in the stock market. Further, the debate on ESG investment profitability has garnered significant scholarly attention. This study examines the relationship between ESG investments and equity investment return (EIR) and whether this relationship is affected by investors' sophistication. The results suggest that while ESG investors generally gain relatively lower profits than others, sophisticated investors, characterized by greater financial knowledge, diversified investments, contrarian investment strategies, and not being influenced by familiar biases, can mitigate these lower returns. These findings enhance our understanding of ESG investments and offer valuable insights to guide investors in making sophisticated ESG investment decisions.

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评估环境、社会和公司治理投资的盈利能力：从投资决策的复杂性角度出发

环境、社会和治理（ESG）投资在股票市场上被广泛讨论。此外，关于 ESG 投资盈利能力的讨论也引起了学者们的极大关注。本研究探讨了环境、社会和治理投资与股票投资回报率（EIR）之间的关系，以及这种关系是否受投资者成熟度的影响。研究结果表明，虽然 ESG 投资者获得的利润通常比其他投资者低，但成熟投资者（具有更多金融知识、多元化投资、逆向投资策略以及不受熟悉偏见的影响等特点）可以减轻这些较低的回报。这些发现加深了我们对环境、社会和公司治理投资的理解，并为指导投资者做出成熟的环境、社会和公司治理投资决策提供了宝贵的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

期刊介绍： Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies. Papers are invited in the following areas: Actuarial studies Alternative investments Asset Pricing Bankruptcy and liquidation Banks and other Depository Institutions Behavioral and experimental finance Bibliometric and Scientometric studies of finance Capital budgeting and corporate investment Capital markets and accounting Capital structure and payout policy Commodities Contagion, crises and interdependence Corporate governance Credit and fixed income markets and instruments Derivatives Emerging markets Energy Finance and Energy Markets Financial Econometrics Financial History Financial intermediation and money markets Financial markets and marketplaces Financial Mathematics and Econophysics Financial Regulation and Law Forecasting Frontier market studies International Finance Market efficiency, event studies Mergers, acquisitions and the market for corporate control Micro Finance Institutions Microstructure Non-bank Financial Institutions Personal Finance Portfolio choice and investing Real estate finance and investing Risk SME, Family and Entrepreneurial Finance