The Performance of Socially Responsible Investment Funds in Europe

An Empirical Analysis
1. Auflage 2016
ISBN: 978-3-8441-0482-0
Verlag: Josef Eul Verlag GmbH

Buch, Englisch, Band 93, 296 Seiten, Paperback, Format (B × H): 148 mm x 210 mm, Gewicht: 460 g

Reihe: Finanzierung, Kapitalmarkt und Banken

Socially responsible investing (SRI) is an investment approach that combines investors’ financial as well as nonfinancial goals in the security selection process. Technically, investors can engage in SRI either by directly investing in companies that implement corporate social activities or by investing their money in SRI funds, which apply screening criteria to select securities. The screening process applied by the SRI funds has led to controversy among academics regarding whether the use of SRI screens in the security selection process influences the financial performance of the funds.

The empirical study analyzes whether or not the screening process applied by such funds influences their financial performance. Previous research mostly has focused on analyzing the performance of SRI equity funds established in the United States. The study at hand not only includes SRI equity funds, but also SRI balanced and fixed income funds established in Europe, the biggest market for SRI globally.

The study provides unexpected results that are not only of interest for investors, who want to get a better understanding of the effect on the financial performance of their portfolios in case SRI funds are added. The results are also relevant for SRI fund managers, who are interested in promoting their funds and attracting (new) investors, and for academics, whose research interests are e. g., located in the fields of SRI, fund portfolio performances and market efficiencies.

Autoren/Hrsg.

Kreibohm, Eva Maria

Inhaltsverzeichnis

1. Introduction

2. The market for socially responsible investing
2.1. The term socially responsible investing (SRI)
2.2. Historical development
2.3. Current market size
2.4. Regulatory background
2.5. Investor base
2.6. Investment strategies
2.7. Excursus: Impact investing
2.8. Interim conclusion

3. Opportunities for investors to get exposed to SRI
3.1. Direct investments
3.2. Indirect investments
3.3. Interim conclusion

4. Literature review
4.1. Investor risk aversion
4.2. Fund characteristics
4.3. Fund performance measurement
4.4. Theoretical debate on SRI fund performance
4.5. Empirical results on SRI fund performance
4.6. Interim conclusion

5. Assessing the performance of European-based SRI funds
5.1. Hypotheses development
5.2. Methodology
5.3. Data set
5.4. Interim conclusion

6. Empirical Results
6.1. Summary statistics
6.2. SRI fund performance
6.3. Additional analyses
6.4. Summary of results
6.5. Discussion of results

7. Conclusion

Über Autor(innen)

Kreibohm, Eva Maria
Eva Maria Kreibohm (nee Keller) studied business administration in Germany, Canada and the United States. She holds a Bachelor’s [BSc] and a Master’s [MSc] degree from WHU – Otto Beisheim School of Management. From 2012 to 2015, she was a research assistant and doctoral student at ESCP Europe, Campus Berlin. She received her Doctor’s degree [Dr. rer. pol.] from the Chair of Finance at ESCP Europe in July 2016.