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.