Authors: Kempf, Alexander; Osthoff, Peer

Source: Journal of Business Finance & Accounting, Volume 35, Numbers 9-10, November/December 2008 , pp. 1276-1294(19)

Publisher: Wiley-Blackwell

Abstract:

: 

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 with respect to 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.

Keywords: socially responsible mutual funds; socially responsible investing; ethical investment

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1468-5957.2008.02107.x

Affiliations: 1: The authors are both from the Department of Finance and Centre for Financial Research (CFR), University of Cologne.

Publication date: 2008-11-01

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