SRI funds: Nomen est omen

We test the frequently made claim that SRI funds are conventional funds in disguise. For this purpose, we compare the portfolio holdings of SRI funds to conventional funds concerning their social and environmental standards. Our empirical study of US equity funds shows that SRI funds have a significantly higher ethical ranking than standard funds, i.e., they are not conventional funds in disguise. This result holds for all ethical criteria we investigate. It is stable over time and holds after controlling for several fund characteristics. Finally, we find no evidence that our result is generated by window dressing strategies of SRI funds.

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Year of publication:	2007
Authors:	Kempf, Alexander ; Osthoff, Peer
Publisher:	Cologne : University of Cologne, Centre for Financial Research (CFR)
Subject:	Socially Responsible Mutual Funds \| Socially Responsible Investing \| Ethical Investment

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Series:	CFR Working Paper ; 07-13
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	714985082 [GVK] hdl:10419/57726 [Handle] RePEc:zbw:cfrwps:0713 [RePEc]
Classification:	G11 - Portfolio Choice ; G20 - Financial Institutions and Services. General ; M14 - Corporate Culture; Social Responsibility
Source:	EconStor

Persistent link: https://www.econbiz.de/10010308678