Socially Responsible Investment and Market Performance: The Case of Energy and Resource Companies

Janusz Brzeszczyński, Binam Ghimire, Tooraj Jamasb, Graham McIntosh

Research output: Contribution to journalJournal articleResearchpeer-review


Do financial markets reward the energy and resource companies for adopting socially responsible practices? In this study, we investigate the stock market performance of major international energy and resource firms, classified within the socially responsible investment (SRI) category, from 2005 to 2016. We simulate investments in the portfolios of the SRI energy and resource companies stocks during this 11-year period and we further assess their risk-adjusted performance. The returns of the energy and resource SRI portfolio as a whole were neither consistently superior nor inferior to those of the benchmark indices. However, there exist substantial differences across the individual sub-sectors. The overall results show that markets do not reward or penalize the energy and resource firms for their SRI attitudes. We also find that the crude oil price consistently had a significant influence on the stock returns of the SRI energy and resource companies.
Original languageEnglish
JournalThe Energy Journal
Issue number5
Pages (from-to)17-72
Number of pages56
Publication statusPublished - Sept 2019
Externally publishedYes


  • Crude oil price
  • Energy and resource companies stocks
  • Socially Responsible Investment (SRI)
  • SRI stocks
  • Stock market performance
  • Stock market returns

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