Socially Responsible Investing in Good and Bad Times (2024)

Article Navigation

Volume 35 Issue 4 April 2022
  • < Previous

Journal Article

Get access


Ravi Bansal

Fuqua School of Business, Duke University and NBER

Search for other works by this author on:

Oxford Academic


Di (Andrew) Wu

Stephen M. Ross School of Business, University of Michigan

Send correspondence to Andrew Wu,

Search for other works by this author on:

Oxford Academic

Amir Yaron

Bank of Israel The Wharton School, University of Pennsylvania and NBER

Search for other works by this author on:

Oxford Academic

The Review of Financial Studies, Volume 35, Issue 4, April 2022, Pages 2067–2099,


18 June 2021

Article history


05 March 2018

Editorial decision:

30 January 2021


18 June 2021

Corrected and typeset:

05 August 2021

  • Views
    • Article contents
    • Figures & tables
    • Video
    • Audio
    • Supplementary Data
  • Cite


    Ravi Bansal, Di (Andrew) Wu, Amir Yaron, Socially Responsible Investing in Good and Bad Times, The Review of Financial Studies, Volume 35, Issue 4, April 2022, Pages 2067–2099,





Advanced Search

Search Menu


We investigate the time variability of abnormal returns from socially responsible investing (SRI). Using portfolio regressions and event studies on multiple data sources, including analyst ratings, firm announcements, and realized incidents, we find that highly rated SRI stocks outperform lowly rated SRI stocks during good economic times, for example, periods with high market valuations or aggregate consumption, but underperform during bad times, such as recessions. This variation in abnormal returns of high-SR stocks vis-à-vis low SR stocks is consistent with a wealth-dependent investor preference for SR stocks that leads to an increased (decreased) demand for SRI during good (bad) times.

© The Author(s) 2021. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. For Permissions, please e-mail:

This article is published and distributed under the terms of the Oxford University Press, Standard Journals Publication Model (


G11 - Portfolio Choice; Investment Decisions G19 - Other G40 - General

Issue Section:


Editor: Francesca Cornelli

Francesca Cornelli


Search for other works by this author on:

Oxford Academic

You do not currently have access to this article.

Download all slides

Sign in

Get help with access

Personal account

  • Sign in with email/username & password
  • Get email alerts
  • Save searches
  • Purchase content
  • Activate your purchase/trial code

Sign in Register

Institutional access

  1. Sign in through your institution Socially Responsible Investing in Good and Bad Times (3)
  2. Sign in with a library card Sign in with username/password Recommend to your librarian

Institutional account management

Sign in as administrator

Get help with access

Institutional access

Access to content on Oxford Academic is often provided through institutional subscriptions and purchases. If you are a member of an institution with an active account, you may be able to access content in one of the following ways:

IP based access

Typically, access is provided across an institutional network to a range of IP addresses. This authentication occurs automatically, and it is not possible to sign out of an IP authenticated account.

Sign in through your institution

Choose this option to get remote access when outside your institution. Shibboleth/Open Athens technology is used to provide single sign-on between your institution’s website and Oxford Academic.

  1. Click Sign in through your institution.
  2. Select your institution from the list provided, which will take you to your institution's website to sign in.
  3. When on the institution site, please use the credentials provided by your institution. Do not use an Oxford Academic personal account.
  4. Following successful sign in, you will be returned to Oxford Academic.

If your institution is not listed or you cannot sign in to your institution’s website, please contact your librarian or administrator.

Sign in with a library card

Enter your library card number to sign in. If you cannot sign in, please contact your librarian.

Society Members

Society member access to a journal is achieved in one of the following ways:

Sign in through society site

Many societies offer single sign-on between the society website and Oxford Academic. If you see ‘Sign in through society site’ in the sign in pane within a journal:

  1. Click Sign in through society site.
  2. When on the society site, please use the credentials provided by that society. Do not use an Oxford Academic personal account.
  3. Following successful sign in, you will be returned to Oxford Academic.

If you do not have a society account or have forgotten your username or password, please contact your society.

Sign in using a personal account

Some societies use Oxford Academic personal accounts to provide access to their members. See below.

Personal account

A personal account can be used to get email alerts, save searches, purchase content, and activate subscriptions.

Some societies use Oxford Academic personal accounts to provide access to their members.

Viewing your signed in accounts

Click the account icon in the top right to:

  • View your signed in personal account and access account management features.
  • View the institutional accounts that are providing access.

Signed in but can't access content

Oxford Academic is home to a wide variety of products. The institutional subscription may not cover the content that you are trying to access. If you believe you should have access to that content, please contact your librarian.

Institutional account management

For librarians and administrators, your personal account also provides access to institutional account management. Here you will find options to view and activate subscriptions, manage institutional settings and access options, access usage statistics, and more.


Subscription prices and ordering for this journal

Purchasing options for books and journals across Oxford Academic

Short-term Access

To purchase short-term access, please sign in to your personal account above.

Don't already have a personal account? Register

Socially Responsible Investing in Good and Bad Times - 24 Hours access

EUR €51.00

GBP £44.00

USD $55.00


Socially Responsible Investing in Good and Bad Times (4)

This article is also available for rental through DeepDyve.






More metrics information


Total Views 6,280

3,837 Pageviews

2,443 PDF Downloads

Since 6/1/2021

Month: Total Views:
June 2021 135
July 2021 91
August 2021 119
September 2021 181
October 2021 155
November 2021 150
December 2021 128
January 2022 130
February 2022 73
March 2022 447
April 2022 507
May 2022 386
June 2022 289
July 2022 138
August 2022 223
September 2022 268
October 2022 202
November 2022 231
December 2022 161
January 2023 202
February 2023 217
March 2023 266
April 2023 186
May 2023 139
June 2023 133
July 2023 163
August 2023 130
September 2023 155
October 2023 185
November 2023 190
December 2023 173
January 2024 127


Powered by Dimensions

14 Web of Science



Email alerts

Article activity alert

Advance article alerts

New issue alert

JEL classification alert

Receive exclusive offers and updates from Oxford Academic

Citing articles via

Google Scholar

  • Latest

  • Most Read

  • Most Cited

Missing Data in Asset Pricing Panels
Holding Period Effects in Dividend Strip Returns
Using Social Media to Identify the Effects of Congressional Viewpoints on Asset Prices
The Effect of Carbon Pricing on Firm Emissions: Evidence from the Swedish CO2 Tax
Corporate Climate Risk: Measurements and Responses

More from Oxford Academic


Financial Markets

Social Sciences




As an expert in finance and investment, with a background in analyzing market trends and investment strategies, I can confidently dissect the content of the article you provided. Let's break down the key concepts mentioned:

  1. Socially Responsible Investing (SRI): This refers to an investment approach that considers not only financial returns but also the social and environmental impact of investments. Investors using SRI strategies often seek to support companies that align with their ethical values or contribute positively to society.

  2. Abnormal Returns: Abnormal returns are the returns on an investment that exceed or fall below what would be expected based on the risk of the investment or the market as a whole. In this context, the article discusses the time variability of abnormal returns from socially responsible investing.

  3. Portfolio Regressions and Event Studies: These are analytical methods used in finance to study the relationship between various factors and investment returns. Portfolio regressions involve analyzing the relationship between the returns of a portfolio and other variables, while event studies examine the impact of specific events on asset prices.

  4. Wealth-dependent Investor Preference: This concept suggests that the demand for socially responsible investments may vary depending on economic conditions and investor wealth. The article discusses how the preference for SRI stocks may increase during good economic times and decrease during bad times.

  5. Market Valuations and Aggregate Consumption: These are economic indicators that reflect the overall health of the economy. Market valuations refer to the assessed value of the stock market, while aggregate consumption measures the total spending by households on goods and services.

  6. JEL Classification Codes: These are standardized codes used by the Journal of Economic Literature (JEL) to classify articles based on their subject matter. The codes mentioned in the article include G11 (Portfolio Choice; Investment Decisions), G19 (Other), and G40 (General), indicating the broader field of finance and investment that the research falls under.

Overall, the article explores how the performance of socially responsible investments varies across different economic conditions, shedding light on the behavior of investors and the impact of market dynamics on SRI strategies. If you have any further questions or need clarification on any of these concepts, feel free to ask!

Socially Responsible Investing in Good and Bad Times (2024)
Top Articles
Latest Posts
Article information

Author: Ouida Strosin DO

Last Updated:

Views: 6522

Rating: 4.6 / 5 (56 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Ouida Strosin DO

Birthday: 1995-04-27

Address: Suite 927 930 Kilback Radial, Candidaville, TN 87795

Phone: +8561498978366

Job: Legacy Manufacturing Specialist

Hobby: Singing, Mountain biking, Water sports, Water sports, Taxidermy, Polo, Pet

Introduction: My name is Ouida Strosin DO, I am a precious, combative, spotless, modern, spotless, beautiful, precious person who loves writing and wants to share my knowledge and understanding with you.