• Abdulloh Mubarok Universitas Pancasakti Tegal, Indonesia
  • Mushawir Universitas Mercubuana Yogyakarta, Indonesia
  • Baihaqi Fanani Universitas Pancasakti Tegal, Indonesia
  • Ibnu Muttaqin Universitas Pancasakti Tegal, Indonesia
  • Raihan Raihan Universitas Pancasakti Tegal, Indonesia



Culture; Intentions; Personal Skills; E-commerce; Entrepreneur Mindset. competitiveness


The purpose of this article is to explore in depth the literature on the theories and models that underlie ethical investment research. Through a literature review study, the research found 10 journals that are ready to be reviewed. The literature search found several theories and models that underlie ethical investment research. The theories and models include agency theory, Angel and Rivoli model (1997), Heinkel, Krause and Zechner model (2001), Barnea, Heinkel and Krause model (2005) and Hypothesis Model of Ethical Investment and Stock Price Relationship of Derwall, Koedijk and Ter Horst (2011).


Al-Awadhi, A. M. (2017). Essays on Religious Beliefs and Stock Market Outcomes. A Thesis. School of Economics, Finance and Marketing College of Business RMIT University.

Albaity, M. dan Ahmad, R. (2011). Return performance and leverage effect in Islamic and socially responsible stock indices evidence from Dow Jones (DJ) and Financial Times Stock Exchange (FTSE). African Journal of Business Management, 5 (16), 6927–6939.

Angel, J. J. dan Rivoli, P. (1997). Does Ethical Investing Impose A Cost Upon The Firm A Theoritical Perspective. The Journal of Investing, Winter, 57–61.

Barnea, A. dan Rubin, A. (2006). Corporate Social Responsibility as a Conflict Between Shareholders. Journal of Business Ethics, 97(March), 1–34.

Claassen, D. B. (2010). Sin Stocks Returns & Collectivism versus Individualism (Issue April). Thesis. International Economics and Finance, Tilburg University, Amsterdam.

Cowton, C. J. (1994). The Development of Ethical Investment Products. In A. R. Prindl & B. Prodhan (Eds.), Ethical Conflicts in Finance (pp. 213–232). Blackwell Publishers.

Cowton, C. J. (2018). Socially Responsible Investing. In A. Lewis (Ed.), The Cambridge Handbook of Psychology and Economic Behaviour (pp. 285–304). Cambridge University Press.

Derwall, J., Koedijk, K. dan Ter Horst, J. (2011). A tale of values-driven and profit-seeking social investors. Journal of Banking and Finance, 35(8), 2137–2147.

Dunfee, T. W. (2003). Social Investing : or Backwater ? Journal of Business Ethics, 43(3), 247–252.

Easton, S. dan Pinder, S. (2018). Theory and empirical evidence on socially responsible investing and investment performance: Implications for fund trustees and their members. ACFS Commissioned Paper Series. Monash University.

Forte, G. dan Miglietta, F. (2011). A Comparison of Socially Responsible and Islamic Equity Investments. SSRN Electronic Journal, 21(21).

Friedman, M. (1970). The Social Responsibility of Business Is to Increase Its Profits. The New York Times Magazine, 1-6.

Gillet, P. dan Salaber-Ayton, J. (2017). The recent development and performance of ethical investments. In Routledge Handbook of Social and Sustainable Finance (pp. 530–546).

GSIA. (2018). 2018 Global Sustainable Investment Review.

Hanafi, S. M. (2013). Islamic Ethical Investment as Mechanism to Mitigate Agency Conflict: An Empirical Study in Indonesian Stock Exchange. Al-Jami‘ah, Vol. 51, No. 1. DOI: 10.14421/ajis.2013.511.189-216.

Heinkel, R., Kraus, A. dan Zechner, J. (2001). The Effect of Green Investment on Corporate Behavior. The Journal of Financial and Quantitative Analysis, 36(4), 431–449.

Hong, H.G., Kubik, J. D. dan Scheinkman, J. (2012). Financial Constraints on Corporate Goodness. Available at SSRN: or

Humphrey, J. E. dan Lee, D. D. (2011). Australian socially responsible funds – performance, risk and screening intensity. Journal of Business Ethics, 102(4), 519-535.

Jensen, M.C. dan Meckling, W.H. (1976). Theory of The Firm. Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics. 3, 305-360

Louche, C. dan Lydenberg, S. (2006). Socially Responsible Investment: Differences between Europe and United States. In Vlerick Leuven Gent Management School Working Paper Series 2006-22

Magnússon, M. B. dan Dyremyhr, T. E. (2011). Ethical Investments (Issue June). Thesis. Department of Finance, Copenhagen Business School.

Mazouz, K., Mohamed, A. dan Saadouni, B. (2016). Price Reaction of Ethically Screened Stocks: A Study of the Dow Jones Islamic Market World Index. Journal of Business Ethics, 154(3), 683–699.

Michelson, G., Wailes, N., van der Laan, S. dan Frost, G. (2004). Ethical Investment Processes and Outcomes. Journal of Business Ethics, 52(52), 1–10.

Mubarok, A. (2022). Investasi Etis (Konsep, Dasar Pertimbangan dan Pendekatan). Jesya: Jurnal Ekonomi & Ekonomi Syariah. Vol 5 No 1, 765-782

Ortas, E. dan Moneva, J. M. (2010). Conditional volatility in sustainable and traditional stock exchange indexes: analysis of the Spanish market. GCG: Revista de Globalización, Competitividad & Gobernabilidad, 4(2), 104–129.

Otoritas Jasa Keuangan. (2019). Statistik Saham Syariah. Direktorat Pasar Modal Syariah – Otoritas Jasa Keuangan.

Panda, B. dan Leepsa, N.M. (2017). Agency theory: Review of Theory and Evidence on Problems and Perspectives. Indian Journal of Corporate Governance. 10(1) 74–95

Pena, J. dan Cortez, M. C. (2017). Social screening and mutual fund performance: international evidence. 1–67. ANNUAL MEETINGS/2017-Athens/papers/EFMA2017_0206_fullpaper.pdf

Ramdhani, A., Ramdhani, M.A., dan Amin, A.A., 2014, Writing a Literature Review Research Paper : A step-by-step approach, Insan Akademika Publications, 03(01) : 47-56.

Reich, M. C., Wolff, R., Zaring, O., Zetterberg, L., dan Åhman, M. (2001). Ethical Investments-Towards a Sound Theory and Screening Methodology (B 1425, Issue October). Swedish Environmental Research Institute.

Renneboog, L., ter Horst, J., dan Zhang, C. (2007a). Socially Responsible Investments: Methodology, Risk Exposure and Performance. In ECGI W0rking Peper Series in Finance (175/2007; 2007-013, Issue 175).

Sandberg, J., Juravle, C., Hedesström, T. M. dan Hamilton, I. (2009). The heterogeneity of socially responsible investment. Journal of Business Ethics, 87(4), 519–533.

Schueth, S. (2003). Socially responsible investing in the United States. Journal of Business Ethics, 43(3), 189–194.

Sparkes, R. (2001). Ethical investment: whose ethics, which investment? Business Ethics: A European Review, 10(3), 194–205.

Vanwalleghem, D. (2013). The real effects of socially responsible investing: Disagreement on the doing well while doing good hypothesis and the cost of capital. 1-36.

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Widyawati, L. (2019). A systematic literature review of socially responsible investment and environmental social governance metrics. Bus Strat Env., 1–19.




How to Cite

Abdulloh Mubarok, Mushawir, Baihaqi Fanani, Ibnu Muttaqin, & Raihan, R. (2022). THEORY AND MODELS UNDERLYING ETHICAL INVESTMENT RESEARCH. International Journal of Social Science, 2(1), 1187–1192.