|Tariq, Adeel Mohammad
|Gudbrandsen, Haakon Olsen
|We study the effects of the United Nations Principles of Responsible Investment (UN-PRI) on
sinful firms, in which we examine whether monthly returns and the Environmental, Social and
Corporate Governance (ESG) performance have changed due to an increase in socially
concerned investors. We find evidence suggesting that increased commitment to Socially
Responsible Investments (SRI) has a negative effect on sinful firms, estimated to reduce
monthly returns by 0.040 percent. This corresponds to a 4.4 percent decrease in the average
monthly return. Our findings for ESG performance indicate that the ESG score is unaffected
by the additional commitment to the UN-PRI. We conduct the analysis on geographical
location and industrial affiliation to determine if these effects are uniform across all samples.
Our results suggest that regions and industries have differentiating results.
|The impact of socially responsible investments on sinful firms: An empirical analysis of the UN Principles of Responsible Investment and sin stocks