RETF Prize winner Dr Ioannis Oikonomou

Monday, 13 May 2013

Dr Ioannis Oikonomou from the ICMA Centre was recently awarded the Research Endowment Trust Fund Prize for best research output for the Henley Business School.

He was awarded this for his research paper "The Impact of Corporate Social Performance on Financial Risk and Utility: A Longitudinal Analysis".

The research Dr Oikonomou is involved in is trying to establish whether firms that exhibit overall responsible and ethical behaviour - beyond what is required by law - can reap material financial benefits because of these practices. It asks the question whether corporate social performance can lead to significant, measurable economic and financial benefits for a firm and its shareholders.

The findings provide evidence that firms that are socially irresponsible (especially when it comes to environmental and employee issues) have stocks characterised by higher levels of overall volatility and financial risk. There are also indications which suggest that being socially responsible and proactively contributing to the benefit of stakeholders can also decrease financial risks - although these results are less conclusive.

What is perhaps even more interesting is that in times of overall financial turmoil, the value destroying effects of corporate socially irresponsibility become more pronounced, whereas during times of economic strength it is the value protective effects of corporate social responsibility that are strengthened.

Every year, the University's Research Endowment Trust Fund awards prizes for the best research outputs and to recognise outstanding research. The prizes are awarded to acknowledge the continuing importance of high quality research to the University. Competitions are run at faculty level, with nominees generated via competitions within schools and departments. This year, each faculty winner received £1,000.

Read an interview with Dr Oikonomou in the Research Review online