MANAGERIAL SUSTAINABILITY INDEX (ISE) PERFORMANCE OF SÃO PAULO STOCK EXCHANGE

Abstract

Many are the reasons that lead companies to adhere to social movements, reasons that are not always assumed openly. Due to the concern with social responsibility and managerial sustainability, measures were developed to evaluate the stock prices of companies that invest in social and environmental responsibility, as the Dow Jones Sustainability, Ethical Fund and, recently, the Managerial Sustainability Index - ISE of the stock exchange of São Paulo. Based on the stakeholders theory and on the market efficiency hypothesis , the present study has as purpose discover whether the Managerial Sustainability Index (ISE) average profitability is similar to the profitability of other BOVESPA indexes, during the period from December of 2005 to November 2007. To reach the proposed objective, parametric and non-parametric tests were conducted, concluding that there are no significant differences between ISE and other BOVESPA indexes. The presented result cannot take to the conclusion that socially responsible investments present the same return as investments that don't adopt the same posture; however, the return average of the indexes is similar, once a relevant number of companies simultaneously compose more than one index.