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dc.contributor.advisorLockwood, Larry
dc.contributor.authorJohnson, Daniel
dc.date2015-05-01
dc.date.accessioned2016-02-19T15:38:19Z
dc.date.available2016-02-19T15:38:19Z
dc.date.issued2015
dc.identifier.urihttps://repository.tcu.edu/handle/116099117/10358
dc.description.abstractThis study examines how YieldCo's fit within a socially responsible investment strategy and tests the validity of a long YieldCo, short parent sponsor hedge strategy. Three tests were utilized: first, YieldCo's were compared to their parent sponsor using cumulative historical (dividend-reinvested) returns. Second, the daily returns Yieldco's were compared to the daily returns of three major SRI indicies in order to derive abnormal returns. Finally, a hedge strategy involving going long a YieldCo and shorting its respective parent sponsor. On average, each YieldCo outperformed its parent by 23% from the date of IPO (31% annualized). YieldCos have outperformed the three major sustainabilty indicies. Additionally, on average, the hedged YieldCo strategy generated a positive alpha of 0.128% above the S&P 500 and a historical beta of (0.525) with a below 0.05 level of significant (p value). The implications of using YieldCos as socially responsible investments is discussed.
dc.subjectFinance
dc.subjectInvesting
dc.subjectSustainability
dc.titleYieldCo's as Socially Responsible Investment Vehicles
etd.degree.departmentFinance
local.collegeNeeley School of Business
local.collegeJohn V. Roach Honors College
local.departmentFinance


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