Are ethical companies' shares less likely to be bought and sold in difficult economic times?

Louise Metcalf, Sue Benn

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contribution

Abstract

This paper examines the effect of the Global Financial Crisis, on the share prices of companies purported to be socially responsible through an ethical companies list regularly sent to investors in Australia. A matched pairs method was used and share price fluctuation data was compiled using public sources. T-tests were then used to determine the statistical significance of differences in daily fluctuations of share prices. Results indicated that companies listed on the index as ethical companies demonstrated less share price fluctuation which was sustained when in recent times of economic downturn. These results show the shares were less responsive to the global panic that ensued and that shareholders may have had more trust in these organisations.
Original languageEnglish
Title of host publication23rd ANZAM Conference 2009
Subtitle of host publicationproceedings
EditorsNicholas Beaumont
PublisherAustralian and New Zealand Academy of Management
Pages1-20
Number of pages20
ISBN (Print)1863081577
Publication statusPublished - 2009
EventAustralian and New Zealand Academy of Management Conference (23rd : 2009) - Melbourne, Australia
Duration: 1 Dec 20094 Dec 2009

Conference

ConferenceAustralian and New Zealand Academy of Management Conference (23rd : 2009)
CountryAustralia
CityMelbourne
Period1/12/094/12/09

Keywords

  • share price
  • stock price
  • fluctuation
  • socially responsible investment
  • trust

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  • Cite this

    Metcalf, L., & Benn, S. (2009). Are ethical companies' shares less likely to be bought and sold in difficult economic times? In N. Beaumont (Ed.), 23rd ANZAM Conference 2009: proceedings (pp. 1-20). Australian and New Zealand Academy of Management.