Evaluating the Performance of Ethical and Non-Ethical Funds: A Matched Pair Analysis

24 Pages Posted: 28 Mar 2006

See all articles by N. Kreander

N. Kreander

University of Glasgow - Department of Accounting and Finance

R. H. Gray

University of St Andrews

D.M. Power

University of Dundee

C. D. Sinclair

University of Dundee

Abstract

This paper studies the performance of 60 European funds from four countries. The paper extends the UK matched pair approach for fund evaluation developed by Mallin et al. (1995) to a European setting. The findings suggest that there is no difference between ethical and non-ethical funds according to the performance measures employed. Neither type of fund displayed any ability to time the market. Finally, the results indicate that the management fee is a significant explanatory variable for the Jensen measure as Chen et al. (1992) and Grinblatt and Titman (1994) suggested.

Suggested Citation

Kreander, N. and Gray, R. H. and Power, David M. and Sinclair, C. Donald, Evaluating the Performance of Ethical and Non-Ethical Funds: A Matched Pair Analysis. Journal of Business Finance & Accounting, Vol. 32, No. 7-8, pp. 1465-1493, September 2005. Available at SSRN: https://ssrn.com/abstract=877431 or http://dx.doi.org/10.1111/j.0306-686X.2005.00636.x

N. Kreander (Contact Author)

University of Glasgow - Department of Accounting and Finance ( email )

65-71 Southpark Avenue
Glasgow, Scotland G12 8LE
United Kingdom

R. H. Gray

University of St Andrews ( email )

The Gateway
Gateway
St. Andrews, Fife KY16 9SS
United Kingdom

David M. Power

University of Dundee ( email )

Dundee, Scotland DD1 4HN
United Kingdom
(+44) 1382 344 854 (Phone)
(+44) 1382 224 419 (Fax)

C. Donald Sinclair

University of Dundee ( email )

Dundee, Scotland DD1 4HN
United Kingdom

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