Scriptie: Indexing for ESG Performance: Corporate Governance
Categorie Institutionele beleggers
Onderwerpen Afstudeerscripties, ESG
Werken bij Finance Ideas was leuk en inspirerend. De begeleiding en aanmoediging van collega’s heeft me geholpen om mijn scriptie op tijd en met veel zinvolle inzichten af te ronden. De projecten waaraan ik heb meegewerkt bij Finance Ideas hebben ook mijn kennis over de zorgsector in Nederland vergroot. –Alicia Le
Afstudeerstage Alicia Le
This research investigates the procedure of combining passive investment through index tracking with socially responsible investment and its effects. The passively managed Good Governance Index was created using the data on corporate governance of the S&P 500 index’s constituents from 2008 to 2016 and straightforward rebalancing methods. The findings show that the Good Governance Index had a higher annualized return than that of its benchmark index from 2010 to 2018.
It also had tracking errors of less than one percent over the same period. Moreover, the study suggests that the growth of passive ownership does not downgrade the governance standards of firms in the S&P 500 index. The results of this paper provide institutional investors with a simple and cost-efficient approach to incorporate socially responsible investment into their portfolio.