Abstract Perhaps the most common criticism of socially responsible investment funds is that imposing non‐financial screens restricts opportunities, reduces diversification efficiencies and thereby adversely impacts performance. In this study we investigate proposition test whether number employed has a linear or curvilinear relation with return. Moreover, analyse link between screening intensity risk. Screening no effect on unadjusted (raw) returns idiosyncratic However, find significant...

We investigate the effect of environmental, social and governance factors on financial performance UK firms. examine three separately to disentangle relation each with performance. find no difference in firms high or low rankings. The also do not differ their systematic risks, book-to-market ratios momentum exposures. However, high-rated are consistently larger. Our findings demonstrate that investors can incorporate criteria into investment strategies without incurring any significant cost...

The 2015 Paris Agreement set a global warming limit of 2°C above preindustrial levels. Corporations play an important role in achieving this objective, and methods have recently been developed to map climate targets specific industries, individual corporations within those industries. In article, we assess whether Sustainability ratings capture corporate performance meeting the target. We analyze nine rating schemes used by investors three commonly academic studies. Most do consider...

Purpose The purpose of this paper is to examine how the practices, processes and expertise embedded within Social Impact Bonds (SIBs) distinctively mediate tensions between outcome payers’ competing contradictory programmatic discourses. Design/methodology/approach We use qualitative research methods employ concepts drawn from governmentality literature analyse interviews with SIB payers. Findings SIBs are shown challenge degree negative influence biopolitics, neoliberalism financialization...

This paper investigates and compares the determinants of fund flows for socially responsible investment (SRI) funds conventional funds. We consider impact current past measures monthly annual return on flow. The results suggest SRI are less sensitive to returns than Our model also shows that flow is persistent investors more likely invest in a they already own relative investors. These reflect difficulty face finding alternative investments meet their non-financial goals.

Abstract We investigate whether Australian fund managers are able to deliver persistent performance using Carhart’s (1997) four‐factor model. Short‐ and long‐term persistence is examined the sample also divided into unit trusts superannuation funds. do not find evidence of in any that winner (loser) funds tend hold past stocks. Winner loser both appear have positive exposure small

We design an experiment to understand how social preferences affect investment decisions through stock allocations and probability assessments. The major preference channel is asymmetric in outcomes – although negative positive responsible (RI) externalities have the same magnitudes, greater impact on choices. effect persistent, but heterogenous. also find asymmetries belief formation learning constitute a secondary channel. Overall, our results are consistent with important stylized...

We investigate the effect of environmental, social and governance factors on financial performance a sample UK firms. examine three separately in order to disentangle relation each with performance. find that, overall, there is no difference firms which achieve high or low rankings. Additionally, ranking do not appear very different terms their systematic risks, book-to-market ratios momentum exposures. However, high-rated are consistently larger size. Our results indicate that investors...

This study investigates whether the relation between aggregate fund flow and market returns differs retail institutional funds. For sample, we document a contemporaneous also find evidence of feedback trading. In contrast, there is little for sample. Consequently, it appears that investors use different investment strategies, with following more naive strategy. We no inducing price pressure either type fund.