Record Details

Development of Investment Strategy Applying Corporate Social Responsibility

Trends Economics and Management

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Field Value
 
Title Development of Investment Strategy Applying Corporate Social Responsibility
 
Creator Kuzmina, Jekaterina; BA School of Business and Finance
Lindemane, Marija; BA School of Business and Finance
 
Subject Corporate Social Responsibility, Investment Strategy
M14
 
Description Purpose of the article: Due to globalization processes and technological development, companies are having more influence on global society than ever. Therefore, business misconduct causes enormous harm to stakeholders, whereas ethical behavior is becoming an important issue. The goal of the following study is to verify and measure a positive effect from investments in social activities on financial attractiveness of companies in the form of its stock portfolio value growth.
Methodology/methods: In order to achieve the goal of the research, quantitative analysis is used by comparing performance of stock portfolio of companies having long-term investments in social activities with market index increment. The quantitative results are accompanied with the review of corporate social responsibility definition and some practical issues on governmental and corporation level.
Scientific aim: The conducted research contributes both to the scientific discussion about development of appropriate investment strategy in companies applying CSR principles as well as to the discussion of related terminology used in the field.
Findings: The research has shown that engagement in the CSR activities tends to have strong positive effect on companies’ financial results and investors’ financial performance. The research proves this fact by comparing value increment of CSR-portfolio (+35.99% gained from January 2015 to March 2017) with market index (+22.37% in the same period).
Conclusions: Regardless the positive result achieved in the study the authors have determined several gaps in the research, which will be discussed in the further studies on the field.
 
Publisher www.fbm.vutbr.cz
 
Contributor
 
Date 2017-12-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion


 
Format application/pdf
 
Identifier https://trends.fbm.vutbr.cz/index.php/trends/article/view/trends.2017.30.37
 
Source TRENDY EKONOMIKY A MANAGEMENTU; Vol 11, No 30 (2017); 37-47
Trends Economics and Management; Vol 11, No 30 (2017); 37-47
2336-6508
1802-8527
 
Language eng
 
Relation https://trends.fbm.vutbr.cz/index.php/trends/article/view/trends.2017.30.37/341