Arribas, IvánEspinós-Vañó, María DoloresGarcía García, FernandoRiley, Nicola2024-01-252024-01-252021-05-200959-6526https://riunet.upv.es/handle/10251/202153[EN] The study analyses the real-life results from the DJSI World selection process and investigates whether companies are treated differently because of sectoral or geographical diversification needs of the index; furthermore, the question whether its methodology penalises ESG-related irresponsible corporate activities is investigated. The last is an important issue, as it is not unusual to find constituents of sustainable indices implicated in corporate scandals. This is a striking fact, contradicting the ethical and sustainable imperative such companies are supposed to comply with. The authors scrutinise data from a data panel containing 2872 firms between 2011 and 2016 and estimate a variety of logit models. The empirical evidence indicates that ESG-related controversies affect the probability to be included in the DJSI World. Surprisingly, whilst controversy-implicated companies which are already index members were penalised, the likelihood of selection for those companies which have not been selected for the index yet, remained unchanged.Reconocimiento - No comercial - Sin obra derivada (by-nc-nd)ControversyNegative screeningCorporate social responsibilitySocial rating agencySustainable investmentECONOMIA FINANCIERA Y CONTABILIDADArtículo10.1016/j.jclepro.2021.126711Abierto