Faculty Fellows Dr. Sharifzadeh and Dr. Hojat Pioneer Groundbreaking ESG Research on ETFs
Dr. Mohammad Sharifzadeh and Dr. Simin Hojat, esteemed professors at Westcliff University’s College of Business, are pioneering new insights into Environmental, Social, and Governance (ESG) factors. As recipients of the LITE Center’s Faculty Fellows Program – a platform to publish research through peer collaboration, conference presentations, and resource support, – their research embodies the program’s mission to foster innovative research and meaningful contributions to global issues.
Their study, “The Impact of Corporate Environmental, Social, and Governance (ESG) Behavior on Return Performance: A Quantitative Case Study of Exchange-Traded Funds (ETFs),” explores how ESG engagement affects both the financial performance and risk-return outcomes of ETFs. Unlike traditional studies focused on individual companies, the researchers analyzed 100 randomly selected U.S.-based equity ETFs, examining the individual components and risk score of ESG.
“Our research shows that ETFs with low ESG risk perform better in both financial performance and risk-return outcomes,” says Dr. Sharifzadeh. “This finding demonstrates that managing ESG risks can lead to better results for investors, offering valuable insights for those seeking to align financial goals with sustainability.”
How Responsible Investing Drives Sustainable Business Practices
Dr. Sharifzadeh traces the evolution of ESG from early 20th-century exclusionary actions to today’s focus on sustainable corporate practices that benefit both society and the environment.
Their research is not only a significant step for responsible investment but also highlights opportunities for future studies in ESG. Dr. Sharifzadeh and Dr. Hojat note that differing ESG frameworks, such as those from Morningstar, Thomson Reuters, and Morgan Stanly Capital International (MSCI), could further enhance understanding.
“There are several institutions providing ESG ratings,” notes Dr. Sharifzadeh. “We used Morningstar’s ESG scores, which focus on unmanaged risks. But other institutions, like Thomson Reuters and MSCI, measure ESG differently. Future research could explore how using different ESG frameworks might affect results.”
Ultimately, this research shows that responsible investing does not compromise returns, but instead encourages businesses to adopt sustainable practices. Dr. Sharifzadeh and Dr. Hojat’s work exemplifies the Faculty Fellows Program’s vision to empower faculty to drive change through innovative research.
Partners in Research and in Life
Dr. Sharifzadeh and Dr. Hojat’s trajectory as researchers is deeply intertwined with their personal story. The pair have been happily married for more than 50 years — a partnership that began at Oxford University in the UK. “We met at a conference led by the famous economist Joan Robinson,” recalls Dr. Hojat. “At the time, we were among the few Iranian graduate students at Oxford, and our research fields were closely related.”
Their shared passion for learning and discovery blossomed into a lifelong bond, and the couple married in 1973. Now, 51 years later and with two daughters, they continue to collaborate, bringing their combined expertise and dedication to every project they undertake. “It’s been an incredible journey,” says Dr. Hojat. “Working together allows us to merge our perspectives and push our research further than we could individually.”
A Proud Partnership with Westcliff University
Dr. Sharifzadeh and Dr. Hojat credit Westcliff’s Faculty Fellows Program for driving their success: “The structured timeline pushed us to focus and meet deadlines, which was invaluable.” They also praised the open-access platform for sharing research, fostering collaboration across faculty and students.
“Westcliff’s global community is truly special,” adds Dr. Hojat. “We learn a lot from different cultures as we see students from Bangladesh, India, China, and the rest of the world.”
Through initiatives like the Faculty Fellows program, Westcliff empowers its faculty to elevate their reputation for excellence on a global stage.