Professional Education and Mutual Fund Voting on Environmental and Social Proposals

39 Pages Posted: 18 Jan 2024 Last revised: 7 May 2024

See all articles by Adam L. Aiken

Adam L. Aiken

Elon University

Choonsik Lee

University of Rhode Island

Matthew E. Souther

University of South Carolina - Darla Moore School of Business

Hasan Zafer Yuksel

University of Rhode Island - College of Business

Date Written: January 11, 2024

Abstract

We use the Chartered Financial Analyst (CFA) program’s growing focus on environmental and social (ES) issues to study the role of professional education on mutual fund voting. We find that CFA-designated managers show stronger support for ES proposals as the CFA curriculum increases focus on ES issues. ES support increases when a fund adds a CFA charterholder, and when a current manager earns a CFA charter. While we find evidence of strategic voting in social proposals, support for failed environmental proposals is informative of future ES risk. Broadly, professional education appears to provide analytical tools that influence manager voting.

Keywords: Professional education, CFA, Mutual funds, Environmental, Social, Sustainable investment

JEL Classification: G11, G23, J24, M14

Suggested Citation

Aiken, Adam L. and Lee, Choonsik and Souther, Matthew and Yuksel, Hasan Zafer, Professional Education and Mutual Fund Voting on Environmental and Social Proposals (January 11, 2024). Available at SSRN: https://ssrn.com/abstract=4691783 or http://dx.doi.org/10.2139/ssrn.4691783

Adam L. Aiken

Elon University ( email )

100 Campus Drive
Elon, NC 27244
United States

Choonsik Lee (Contact Author)

University of Rhode Island ( email )

Ballentine Hall
7 Lippitt Road
Kingston, RI 02881
United States

HOME PAGE: http://sites.google.com/site/choonsiklee79/

Matthew Souther

University of South Carolina - Darla Moore School of Business ( email )

1705 College St
Francis M. Hipp Building
Columbia, SC 29208
United States

Hasan Zafer Yuksel

University of Rhode Island - College of Business ( email )

7 Lippitt Road
Kingston, RI 02881-0802
United States

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