ESC
Web of Science
Entrepreneurship and Sustainability Issues Open Access Q1
Scopus - coverage starting with 2017 material
Received: 2019-02-14  |  Accepted: 2019-05-20  |  Published: 2019-06-30

Title

Negative screening and sustainable portfolio diversification


Abstract

A critical issue for socially responsible investors is the selection of the potential companies to invest in. For retail investors, the easiest and more intuitive option is to apply a negative screening approach to avoid investing in companies with bad reputation. In this line, companies involved in scandals regarding irresponsible activities which have become notorious in the mass media will be excluded from the potential companies. Implementing this process in a consistent and objectivity way is not an easy task, especially with worldwide portfolios. Nevertheless, there already exist complex databases which offer sensitive information to investors. This paper describes one of these databases. Furthermore, the problems of implementing such a negative screening methodology are presented, which are mainly related with the proper diversification of the resulting investment portfolios.


Keywords

negative screening, bad reputation, negative media stories, ESG, controversies, sustainability, social corporate responsibility


JEL classifications

G15 , Q56


URI

http://jssidoi.org/jesi/article/305


DOI


Pages

1566-1586


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Arribas, Iván
University of Valencia, Valencia, Spain https://www.uv.es
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Espinós-Vañó, María Dolores
Polytechnic University of Valencia, Valencia, Spain http://www.upv.es
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García, Fernando
Polytechnic University of Valencia, Valencia, Spain http://www.upv.es
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Tamošiūnienė, Rima
Vilnius Gediminas Technical University, Vilnius, Lithuania https://www.vgtu.lt
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Journal title

Entrepreneurship and Sustainability Issues

Volume

6


Number

4


Issue date

June 2019


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References