TY - UNPB
T1 - Socially Responsible Investments
T2 - Methodology, Risk and Performance
AU - Renneboog, L.D.R.
AU - Ter Horst, J.R.
AU - Zhang, C.
N1 - Subsequently published in Journal of Banking & Finance, 2008 (rt)
Pagination: 47
PY - 2007
Y1 - 2007
N2 - This paper surveys the literature on socially responsible investments (SRI). Over the past decade, SRI has experienced an explosive growth around the world. Particular to the SRI funds is that both financial goals and social objectives are pursued. While corporate social responsibility (CSR) - defined as good corporate governance, sound environmental standards, and good management towards stakeholder relations - may create value for shareholders, participating in other social and ethical issues is likely to destroy shareholder value. Furthermore, the risk-adjusted returns of SRI funds in the US and UK are not significantly different from those of conventional funds, whereas SRI funds in Continental Europe and Asia-Pacific strongly underperform benchmark portfolios. Finally, the volatility of money-flows is lower in SRI funds than of conventional funds, and SRI investors’ decisions to invest in an SRI fund are less affected by management fees than the decisions by conventional fund investors.
AB - This paper surveys the literature on socially responsible investments (SRI). Over the past decade, SRI has experienced an explosive growth around the world. Particular to the SRI funds is that both financial goals and social objectives are pursued. While corporate social responsibility (CSR) - defined as good corporate governance, sound environmental standards, and good management towards stakeholder relations - may create value for shareholders, participating in other social and ethical issues is likely to destroy shareholder value. Furthermore, the risk-adjusted returns of SRI funds in the US and UK are not significantly different from those of conventional funds, whereas SRI funds in Continental Europe and Asia-Pacific strongly underperform benchmark portfolios. Finally, the volatility of money-flows is lower in SRI funds than of conventional funds, and SRI investors’ decisions to invest in an SRI fund are less affected by management fees than the decisions by conventional fund investors.
KW - socially responsible investments
KW - ethical investing
KW - corporate social responsibility
KW - mutual funds
KW - performance evaluation
KW - money-flows
KW - investment screens
M3 - Discussion paper
VL - 2007-31
T3 - CentER Discussion Paper
BT - Socially Responsible Investments
PB - Finance
CY - Tilburg
ER -