RT Journal Article SR Electronic T1 A Morality Tale of ESG: Assessing Socially Responsible Investing JF The Journal of Wealth Management FD Institutional Investor Journals SP 14 OP 23 DO 10.3905/jwm.2017.19.4.014 VO 19 IS 4 A1 Edward N.W. Aw A1 Stephen J. LaPerla A1 Gregory Y. Sivin YR 2017 UL https://pm-research.com/content/19/4/14.abstract AB A review of academic literature suggests a lack of consensus on positive and negative abnormal returns associated with socially responsible investing/environmental, social, and governance (SRI/ESG) factors. This article examines the benefit of incorporating ESG factors during a more recent period to acknowledge the ongoing investment trend toward ESG. The authors find that the top-quintile (most compliant) stocks ranked by ESG score underperform the out-sample research universe. They present evidence that indicates incorporating ESG into a robust quantitative investment process can mitigate the adverse effect, however, thus providing investors with a portfolio that outperforms a benchmark while allowing investors to embrace ESG.TOPICS: ESG investing, analysis of individual factors/risk premia, performance measurement