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Introduction
This study examines the relationships among nonprofessional investors' views regarding the relative importance of corporate social responsibility (CSR) performance and whether CSR performance affects firm investment returns, their use of socially responsible investment (SRI) screening tools and their actual SRI behavior. The demand for SRIs, either directly or through SRI mutual funds, has increased considerably in recent years, as the investing community has become increasingly aware of concerns about CSR (Friedman and Miles, 2001; Sparkes and Cowton, 2004; Nilsson, 2008; Berry and Junkus, 2013; Paetzold and Busch, 2014; USSIF, 2014). As of the beginning of 2014, more than one out of every six dollars under professional management in the USA is held in SRIs. These investments total US$6.57 trillion, a 76 per cent increase since the beginning of 2012 (USSIF, 2014). On a global scale, there are over 1,400 signatories to the United Nations-supported Principles for Responsible Investment (PRI). These firms manage a total amount of US$59 trillion of assets as of April 2015 (PRI, 2015a).
Research suggests that socially responsible investors use CSR performance information (Cohen et al. , 2011), and that the supply of such information is rapidly increasing (Holder-Webb et al. , 2009; KPMG, 2013). Individuals considering SRI, however, are often challenged by the unavailability of consistent, reliable information concerning companies' CSR performance (Paetzold and Busch, 2014; Eccles et al. , 2015). SRI screening tools (i.e. SRI screens) attempt to mitigate this problem by providing CSR data in a summarized, standardized format (Berry and Junkus, 2013). For example, the GMI ESG (Environmental, Social and Governance) Composite Rating is a measure of how effectively companies manage environmental, social and governance risks and address these opportunities (Fidelity Investments, 2015). The information aggregator (GMI Ratings) develops these ratings by gathering publicly available data, summarizing the data and rating each company's environmental, social and governance performance on a three-level scale. Similarly, the Newsweek (2015) Green Rankings summarize and present environmental performance metrics on standardized scales. Investors can use these SRI screens directly to invest in socially responsible companies, or rely on them indirectly by investing in a mutual fund such as the TIAA-CREF Social Choice Equity Fund, which uses ESG screens as part of its investment selection criteria (TIAA-CREF, 2015).
Despite the increasing demand...