Advancing financial strategy: A comprehensive analysis of ESG and value investing for profit maximization
Authors
Doyle, Steven
Stan, Georgiana
Stan, Vlad
Cook, Harry
Issue Date
2024
Degree
BA (Hons) in Accounting and Finance
Publisher
Dublin Business School
Rights holder
Rights
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Abstract
This research explores the comparative expected returns between portfolios of value stocks and top-rated ESG (Environmental, Social, and Governance). Our analytical approach included a rigorous selection process for value stocks based on financial metrics and for ESG stocks based on their sustainability scores. Our comprehensive analysis included calculating expected returns, risk assessments, and portfolio optimizations, which were facilitated through advanced financial tools and methodologies.
This research underscores the shifting paradigms in investment strategies, where ethical considerations are increasingly becoming as crucial as financial outcomes. It asks the question can investors align themselves with broader environment and societal goals and still achieve profitable returns and open the path for further research that could extend the dept of the analysis.
The findings advocate for a broader acceptance and integration of ESG factors as a lucrative investment and a forerunner in the future of investment decision-making, supporting the notion that sustainable investing can indeed align with, or even enhance, financial goals.