SRI Funds: Nomen Est Omen

26 Pages Posted: 6 Mar 2008

See all articles by Alexander Kempf

Alexander Kempf

University of Cologne - Department of Finance & Centre for Financial Research (CFR)

Peer C. Osthoff

University of Cologne - Centre for Financial Research (CFR)

Multiple version iconThere are 2 versions of this paper

Date Written: August 31, 2007

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 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.

Keywords: Socially Responsible Mutual Funds, Socially Responsible Investing, Ethical Investment

JEL Classification: G11, G20, M14

Suggested Citation

Kempf, Alexander and Osthoff, Peer C., SRI Funds: Nomen Est Omen (August 31, 2007). Available at SSRN: https://ssrn.com/abstract=1101681 or http://dx.doi.org/10.2139/ssrn.1101681

Alexander Kempf

University of Cologne - Department of Finance & Centre for Financial Research (CFR) ( email )

Cologne, 50923
Germany
+49 221 470 2714 (Phone)
+49 221 470 3992 (Fax)

Peer C. Osthoff (Contact Author)

University of Cologne - Centre for Financial Research (CFR) ( email )

Albertus-Magnus Platz
Cologne, 50923
Germany

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