The Impact of Ethical Ratings on Canadian Security Performance: Portfolio Management and Corporate Governance Implications

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CFA Digest
August 2007 | Vol. 37 | No. 3 | 2 pages
Source: CFA Institute
Klaus Fischer Nabil Khoury
Daniel J. Larocco, CFA (Reviewer)

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Abstract

Many investors are attempting to incorporate evaluations of corporate ethics into the investment decision-making process. An approach gaining adherents is to base the ethical evaluation on the design of firms that specialize in this purpose. This study uses a multifactor model to estimate stock price performance based on one such firm’s methodology. The study also discusses the corporate governance implications resulting from the analysis.

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Topics
Corporate Finance
    :
  • Corporate Governance
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