CEF.UP - FIN Seminar | Webinar - The World's Most Ethical Companies financial performance

Thursday, October 12th 2023 | 1:00 pm | room 305 | online

“The World’s Most Ethical Companies financial performance” 

Nelson Areal – Escola de Economia e Gestão, Universidade do Minho

“The financial consequences of embracing ethical conduct in business remain a point of contention in the literature. We discuss why ethical companies can have advantages over others by exploring three concurrent dimensions: organizational values, stakeholder management, and good reputation. We evaluate the long-term financial performance of the World’s Most Ethical Companies, a list devised by Ethisphere, using a calendar time portfolio returns. We compare the performance of these companies to a matching sample and, following Mitton (2022), perform a large study to examine the impact of methodological choices when constructing the matching sample on the results. We show that these choices can have a significant impact on results. Overall, the portfolio of these companies overperform the market, but their performance is not different from matched samples.”

Any questions please contact cefup.sec@fep.up.pt.



“Cef.up is financed by Portuguese public funds through FCT - Fundação para a Ciência e Tecnologia, I.P., in the framework of the project with reference UIDB/04105/2020”