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SRI Funds: Nomen est Omen

Author

Listed:
  • Alexander Kempf
  • Peer Osthoff

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 with respect to 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.

Suggested Citation

  • Alexander Kempf & Peer Osthoff, 2008. "SRI Funds: Nomen est Omen," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(9‐10), pages 1276-1294, November.
    • Handle: RePEc:bla:jbfnac:v:35:y:2008:i:9-10:p:1276-1294
    DOI: 10.1111/j.1468-5957.2008.02107.x
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    References listed on IDEAS

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