At the Q Group Spring seminar, this paper by Sudheer Chava, College of Management, Georgia Institute of Technology finds that investors demand significantly higher expected returns on stocks excluded by enviornmental screens widely used by socially responsible investors, compared to firms without environmental concerns.It also shows those firms with environmental concerns have lower institutional ownership, and are held by fewer institutional investors, than firms without similar environmental concerns.
To view the paper click this link:
Socially Responsible Investing and Expected Stock Returns
