Corporate Social Responsibility Performance & ETF Historical Market Volatility

  •  Vasiliki Basdekidou    
  •  Artemis Styliadou    


In investment and trading, different CSR moral ethical firms, categorized in a number of groups, may be suitable for different financial instruments (i.e. USA sector ETFs) and different market volatility situations. For the purpose of this article we first (i) analyze the trading return performance of four CSR categories (in particular: activism, community development, corporate governance, and environment); and then (ii) examine and comment the correlation between the market performance of a number of firms belonging in these four CSR categories and historical ETF market volatility. Finally, we (iii) suggest CSR firms as trading tools according to dominant market volatility. Other CSR categories (like: fair trade & supply chain, green building, philanthropy & corporate contributions, etc.) would be examined in future research by following the introduced by this paper approach. Paper concludes that, in relatively less volatile markets the Environment CSR ethical firms display better results. On the other hand, in strong market volatile situations it is better to trade Community Development CSR and Corporate Governance CSR ethical firms. Finally, the Activism CSR ethical firms are uncorrelated with the market volatility, as well as their performance is poor in all market cases.

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