The Riskreturn Paradox Explored

Cover The Riskreturn Paradox Explored
The Riskreturn Paradox Explored
Edward H Bowman
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With Methodology I which was a complete coding of the 82 annual -17- reports for Corporate Social Responsibility it was determined that the set of companies with a high involvement had a 5 year average return on investment of 14, 7%, and the set of companies with a low rate of involvement in Corporate Social Responsibility activities had a 5 year average return on investment of 10. 2% (a difference significant beyond 0. 01).
With Methodology II which involved an accumulation of quotations from
...the top quartile companies and the bottom quartile companies for a special qualitative type of discriminant analysis, top i c-by- t op i c, the following topic which gave the title to the paper "Strategy and the Weather" is quoted: [6 ] "1. Food processing companies that are less successful complain about the weather.
There were many (seven) different comments mentioning unfavorable weather conditions in the low-quartile companies and n^ mention in the hi gh-quar t il e companies (and it should be repeated that the ROE figure which separates the company quartiles is an average for five years).


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