Business and Society

Looking Forward, Looking Back: A Hitchhiker's Guide to Research on Social and Sustainable Investment

February 1, 2013 | 4 min read

The guide is divided into two parts. The first part consists of an essay by Lloyd Kurtz covering the first three decades of research into social and sustainable investment. The second part bundles articles on all the studies and books that Lloyd Kurtz mentions, plus references to the online libraries where this research can be found. Almost all articles in the second half of this guide have also been published on The e-book “A Hitchhiker’s Guide to Research on Social and Sustainable Investment” can be bought via several online stores, such as or the iBookStore for only $2,99.

Research covered

  • Angel, James J, and Pietra Rivoli. “Does Ethical Investing Impose a Cost Upon the Firm? A Theoretical Perspective.” The Journal of Investing 6, no. 4 (January 1997): 57–61. doi:10.3905/joi.1997.57
  • Barber, Brad M. “Monitoring the Monitor: Evaluating CalPERS’ Activism.” SSRN eLibrary (November 2006). doi:10.2139/ssrn.890321
  • Baron, David P., Maretno A. Harjoto, and Hoje Jo. “The Economics and Politics of Corporate Social Performance.” SSRN eLibrary (April 21, 2009). 10.2139/ssrn.1202390
  • Bauer, Rob, Kees Koedijk, and Rogér Otten. “International Evidence on Ethical Mutual Fund Performance and Investment Style.”Journal of Banking & Finance 29, no. 7 (July 2005): 1751–1767. doi:10.1016/j.jbankfin.2004.06.035
  • Bauer, Rob, and Daniel Hann. “Corporate Environmental Management and Credit Risk.” SSRN eLibrary (December 23, 2010). doi:10.2139/ssrn.1660470
  • Chava, Sudheer. “Environmental Externalities and Cost ofCapital.” SSRN eLibrary (June 15,2011). doi:10.2139/ssrn.1677653
  • Derwall, Jeroen, Nadja Guenster, Rob Bauer, and Kees Koedijk. “The Eco-Efficiency Premium Puzzle.” Financial Analysts Journal 61, no. 2 (March 2005): 51–63. doi:10.2469/faj.v61.n2.2716
  • Derwall, Jeroen, Kees Koedijk, and Jenke Ter Horst. “A Tale of Values-driven and Profit-seeking Social Investors.” Journal of Banking & Finance 35, no. 8 (August 2011): 2137–2147. doi:10.1016/j.jbankfin.2011.01.009
  • DiBartolomeo, Dan, and Kurtz, Lloyd. “Managing Risk Exposures of Socially Screened Accounts”, Northfield Information Services (September, 1999).
  • Dimson, Elroy, Oguzhan Karakas, and Xi Li. “Active Ownership.” SSRN eLibrary (September 30, 2012). doi:10.2139/ssrn.2154724
  • Dowell, Glen, Stuart Hart, and Bernard Yeung. “Do Corporate Global Environmental Standards Create or Destroy Market Value?” Management Science 46, no. 8 (August 1, 2000): 1059–1074. doi:10.1287/mnsc.46.8.1059.12030
  • Eccles, Robert G., Ioannis Ioannou, and George Serafeim. “The Impact of a Corporate Culture of Sustainability on Corporate Behavior and Performance”, HBS Working Knowledge, (November 14, 2011).
  • Edmans, Alex. “Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices.”Journal of Financial Economics 101, no. 3 (September 2011): 621–640. doi:10.1016/j.jfineco.2011.03.021
  • El Ghoul, Sadok, Omrane Guedhami, Chuck C.Y. Kwok, and Dev R. Mishra. “Does Corporate Social Responsibility Affect the Cost of Capital?” Journal of Banking & Finance 35, no. 9 (September 2011): 2388–2406. doi:10.1016/j.jbankfin.2011.02.007
  • Geczy, Christopher, Robert F. Stambaugh, and David Levin. “Investing in Socially Responsible Mutual Funds.” SSRN eLibrary (October 2005). doi:10.2139/ssrn.416380
  • Gil-Bazo, Javier, Pablo Ruiz-Verdú, and André A. P. Santos. “The Performance of Socially Responsible Mutual Funds: The Role of Fees and Management Companies.” Journal of Business Ethics 94, no. 2 (November 24, 2009): 243–263. doi:10.1007/s10551-009-0260-4
  • Gompers, Paul, Joy Ishii, and Andrew Metrick. “Corporate Governance and Equity Prices.” The Quarterly Journal of Economics 118, no. 1 (February 1, 2003): 107–156. doi:10.1162/00335530360535162
  • Grossman, Blake R., and William F. Sharpe. “Financial Implications of South African Divestment.”Financial Analysts Journal 42, no. 4 (July 1986): 15–29. doi:10.2469/faj.v42.n4.15
  • Guenster, Nadja, Rob Bauer, Jeroen Derwall, and Kees Koedijk. “The Economic Value of Corporate Eco-Efficiency.” European Financial Management 17, no. 4 (2011): 679–704. doi:10.1111/j.1468-036X.2009.00532.x
  • Guerard, John B. “Is There a Cost to Being Socially Responsible in Investing?” The Journal of Investing 6, no. 2 (January 1997): 11–18. doi:10.3905/joi.1997.408416
  • Humes, Edward. Force of Nature: The Unlikely Story of Wal-Mart’s Green Revolution. HarperBusiness, 2011.
  • Kacperczyk, Marcin T., and Harrison G. Hong. “The Price of Sin: The Effects of Social Norms on Markets.” SSRN eLibrary (March 15, 2006). doi: 10.2139/ssrn.766465
  • Kim, Yongtae, and Meir Statman. “Do Corporations Invest Enough in Environmental Responsibility?” Journal of Business Ethics 105, no. 1 (July 7, 2011): 115–129. doi:10.1007/s10551-011-0954-2
  • Kurtz, Lloyd, and Dan diBartolomeo. “The Long-Term Performance of a Social Investment Universe.” The Journal of Investing 20, no. 3 (August 2011): 95–102. doi:10.3905/joi.2011.20.3.095
  • Lee, Charles M. C, and David Ng. “Corruption and International Valuation: Does Virtue Pay?” The Journal of Investing 18, no. 4 (November 2009): 23–41. doi:10.3905/JOI.2009.18.4.023
  • McWilliams, Abagail, and Donald Siegel. “Event Studies in Management Research: Theoretical and Empirical Issues.” Academy of Management Journal 40, no. 3 (June 1, 1997): 626–657. doi:10.2307/257056
  • McWilliams, Abagail, and Donald Siegel. “Corporate Social Responsibility and Financial Performance: Correlation or Misspecification?” Strategic Management Journal 21, no. 5 (2000): 603–609. doi:10.1002/(SICI)1097-0266(200005)21:5<603::AID-SMJ101>3.0.CO;2-3
  • Orlitzky, Marc, Frank L. Schmidt, and Sara L. Rynes. “Corporate Social and Financial Performance: A Meta-Analysis.” Organization Studies 24, no. 3 (March 1, 2003): 403–441. doi:10.1177/0170840603024003910
  • Repetto, Robert, and Duncan Austin. Pure Profit : The Financial Implications of Environmental Performance. World Resources Inst, 2000.
  • Russo, Michael V., and Paul A. Fouts. “A Resource-Based Perspective on Corporate Environmental Performance and Profitability.” Academy of Management Journal 40, no. 3 (June 1, 1997): 534–559. doi:10.2307/257052
  • Statman, Meir. “Socially Responsible Indexes.” The Journal of Portfolio Management 32, no. 3 (January 2006): 100–109. doi:10.3905/jpm.2006.628411
  • Statman, Meir, and Denys Glushkov. “The Wages of Social Responsibility.” SSRN eLibrary (December 26, 2008). doi:10.2139/ssrn.1372848
  • Stone, Berkell K., John B. Guerard, Mustafa N. Gueltekin and Greg Adams, “Socially Responsible Investing Screening: Strong Evidence of No Significant Cost for Actively Managed Portfolios.” Moskowitz Prize Honorable Mention (June 2001). Available from
  • Teoh, Siew Hong, Ivo Welch, and C. Paul Wazzan. “The Effect of Socially Activist Investment Policies on the Financial Markets: Evidence from the South African Boycott.” The Journal of Business 72, no. 1 (January 1999): 35–89. doi:10.1086/209602
  • Tsoutsoura, Margarita. “Corporate Social Responsibility and Financial Performance” (March 1, 2004).
  • Waddock, Sandra A, and Samuel B Graves. “Finding the Link Between Stakeholder Relations and Quality of Management.” The Journal of Investing 6, no. 4 (January 1997): 20–24. doi:10.3905/joi.1997.408435
  • Waddock, Sandra A., and Samuel B. Graves. “The Corporate Social Performance-Financial Performance Link.” Strategic Management Journal 18, no. 4 (1997): 303–319.doi:10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G.


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Lloyd Kurtz
Lecturer of social investing, Haas School of Business

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