Do Ethical Companies Have High Stock Prices or High Returns?

In this paper, we examine the performance of an impact investing strategy using most ethical companies to build portfolio. We test time-series and cross-sectional returns portfolio, explore financial analyst coverage firms, run regressions analyze valuation firms. Our empirical results reveal that portfolio consisting firms has a higher risk-adjusted return have lower stock valuations than comparable stocks. attribute our findings incomplete information in business ethics norms.