Year: 2023 | Month: December | Volume 68 | Issue 4

Aggregate Trend in the Financial Performance of Socially Responsible Investment: Case of Listed Moroccan Companies

Mohammed Alami Chentoufi Ait Alla Aniss and Naoual Mamdouh


The development of socially responsible investment (SRI) in the mid-1990s opened up a vast area of
research in portfolio construction. Indeed, investors are breaking with traditional financial theory by
integrating extra-financial elements into their portfolio management strategies. In this sense, the emergence
of this new type of investment has triggered a craze in the scientific community about the performance of
SRI, which has led to mixed results. One of the possible explanations for this heterogeneity of results is
that the methodology employed by the different studies has an inevitable influence on its result, or that
the financial performance of SRI can be influenced by the measure of financial performance employed
(risk or profitability variable). For this reason, the analysis of our data is conducted using a principal
component analysis of financial performance, which permits the construction of a synthetic index that
includes most of the variables used to measure financial performance in the empirical literature. The
objective here is to capture a general trend in the impact of SRI on this composite index of financial
performance. The results of the multivariate test on the composite index show that non-SRI firms have
a negative and statistically significant impact on the financial performance index. Similarly, the effect
of investments made by Engaged companies has a negative, but not statistically significant impact on
financial performance.


  • The emergence of socially responsible investment (SRI) in the 1990s led to research on portfolio construction as investors adopted non-traditional strategies.
  • Scientific interest in SRI’s performance resulted in mixed findings, possibly due to differing methodologies and financial performance metrics
  • Researchers used principal component analysis, revealing that non-SRI firms had significant negative impact on financial performance, while impact of Engaged companies’ investments was negative but statistically insignificant.

© This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Print This Article Email This Article to Your Friend

Economic Affairs, Quarterly Journal of Economics| In Association with AESSRA

26745761 - Visitors since February 20, 2019