This study analyzed whether or not investment in socially responsible companies generated abnormal returns in comparison to the S&P 500. An Environmental, Social, and Governance Index consisting of 33 companies was created based on four different ESG rating agencies. In order to perform a meaningful comparison between said ESG Index and the S&P benchmark, the researcher used Eventus software to conduct an event study. Eventus analyzed stock price data of ESG and S&P companies at a specific point in time over a period of five years. It was determined that the ESG companies performed significantly stronger in comparison to the S&P in a bullish market. There are many economic factors that impact stock prices which cannot be held constant. However, in order to mitigate some market volatility, the researcher chose a five- year period ranging from 2013 which is well after the recovery from the Great Recession to 2017, before the most recent market downturns. This leaves room for future research in less favorable economic conditions to determine if companies continue investing in their ESG initiatives during a recession, as it becomes more costly to be ethical, and if investor attitudes and priorities shift during a downward economic trajectory
