An Analysis on the Relation between Socially Responsible Investment and Firm Value

This paper analyzed the strategies of socially responsible investment and pointed out that socially responsible investment enhances a firm's value by improving its operating environment and reducing its financing costs in theory. And some empirical evidences also are found that there is a positive relation between SRI and firms' value. Social screens are relevant to firms' value. Socially responsible mutual funds have achieved good performance and the companies performed well on social responsibilities provide investors excellent return.