[Abstract]
From early 2003 through late 2010 this study ed and analyzed 71 domestically
operating (in South Korea) socially responsible investing (SRI) fund corporations
that satisfied the ion criteria for analysis. By comparatively analyzing the before-incorporation
and after-incorporation financial performances of these SRI fund corporations,
this study proved that these corporate entities performed relatively better financially
while being socially responsible albeit incurring costs for doing so-as compared to
their business performances when they were neglecting social responsibility-and were
viewed as superior investment targets by both institutional and individual investors. The
analysis results are as follows. First, it was discovered that the incorporation of SRI funds
has significant positive(+) effects on each of the two profitability characteristics of operating
profit margin and return on equity and on each of the two growth characteristics of revenue
growth and operating profit growth. Second, it was discovered that the bigger the scale of SRI
funds, the bigger the positive(+) significant effects exerted on the profitability characteristics of
operating profit margin and return on equity and on the growth characteristics of revenue
growth and operating profit growth. Third, the business performance did not show any significant
influence on the profitability characteristics of operating profit margin and return on
equity; however, it did show meaningful positive(+) effects on the growth characteristics of
revenue growth and operating profit growth. Fourth, the number of employees was found to
exert positive(+) influence on the profitability indicator of operating profit margin and on the
growth characteristics of revenue growth and operating profit growth. However, it did not show
exerting any significant influence on the profitability characteristic of return on equity.