IDEAS home Printed from https://ideas.repec.org/p/gro/rugsom/01e17.html
   My bibliography  Save this paper

Socially responsible investing and management style of mutual funds in the euronext stock markets

Author

Listed:
  • Plantinga, Auke
  • Scholtens, Bert

    (Groningen University)

Abstract

This paper analyses fund management styles on the Euronext stock exchanges. Especially, we investigate how social responsibility is accounted for. We use style analysis to assess fund performance in Belgium, France, and the Netherlands for over 800 investment funds during the 1990s. We find remarkable and significant differences in performance characteristics among these markets. Furthermore, we find that funds that to some extent mirror well known social responsibility indices tend to perform better than funds that bear no relationship with social responsible investment strategies.

Suggested Citation

  • Plantinga, Auke & Scholtens, Bert, 2001. "Socially responsible investing and management style of mutual funds in the euronext stock markets," Research Report 01E17, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    • Handle: RePEc:gro:rugsom:01e17
    as

    Download full text from publisher

    File URL: http://irs.ub.rug.nl/ppn/21798858X
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kim, Moon & Shukla, Ravi & Tomas, Michael, 2000. "Mutual fund objective misclassification," Journal of Economics and Business, Elsevier, vol. 52(4), pages 309-323.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Douglas Cumming & Sofia Johan, 2007. "Socially Responsible Institutional Investment in Private Equity," Journal of Business Ethics, Springer, vol. 75(4), pages 395-416, November.
    2. Mónica García-Melón & Blanca Pérez-Gladish & Tomás Gómez-Navarro & Paz Mendez-Rodriguez, 2016. "Assessing mutual funds’ corporate social responsibility: a multistakeholder-AHP based methodology," Annals of Operations Research, Springer, vol. 244(2), pages 475-503, September.
    3. Sonali Srivastava, 2017. "Tradeoff and Forecasting Approach for Social Responsible Investing: Artificial Neural Network," Vision, , vol. 21(2), pages 143-151, June.
    4. Jedynak Tomasz, 2017. "Is it Worth Being Good? – The Efficiency and Risk of Socially Responsible Investing in Light of Various Empirical Studies," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 13(3), pages 1-14, September.
    5. Dominique Diouf & Tessa Hebb & El Hadji Touré, 2016. "Exploring Factors that Influence Social Retail Investors’ Decisions: Evidence from Desjardins Fund," Journal of Business Ethics, Springer, vol. 134(1), pages 45-67, March.
    6. Syed, Ali Murad, 2017. "Socially responsible: Are they profitable?," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1504-1515.
    7. Säve-Söderbergh, Jenny, 2005. "Who is Willing to Let Ethics Guide His Economic Decision-Making? Evidence from Individual Investments in Ethical Funds," Working Paper Series 7/2005, Stockholm University, Swedish Institute for Social Research.
    8. Johan, S.A. & Cumming, D., 2006. "Corporate social responsibility : domestic and international private equity institutional investment," Discussion Paper 2006-002, Tilburg University, Tilburg Law and Economic Center.
    9. Stephanos Papadamou & Costas Siriopoulos, 2004. "American equity mutual funds in European markets: Hot hands phenomenon and style analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 9(2), pages 85-97.
    10. Hassan, M. Kabir & Girard, Eric, 2010. "Faith-Based Ethical Investing: The Case Of Dow Jones Islamic Indexes," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 17, pages 1-31.
    11. Ruy de Castro Sobrosa Neto & Carlos Rogério Montenegro de Lima & Daniel Goulart Bazil & Manoela de Oliveira Veras & José Baltazar Salgueirinho Osório de Andrade Guerra, 2020. "Sustainable development and corporate financial performance: A study based on the Brazilian Corporate Sustainability Index (ISE)," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 960-977, July.
    12. Stephanos Papadamou & Nikolaos A. Kyriazis & Lydia Mermigka, 2017. "Japanese Mutual Funds before and after the Crisis Outburst: A Style- and Performance-Analysis," IJFS, MDPI, vol. 5(1), pages 1-20, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Agapova, Anna & Kaprielyan, Margarita, 2023. "Diversification measures: Mutual fund family case," International Review of Financial Analysis, Elsevier, vol. 90(C).
    2. repec:dgr:rugsom:01e17 is not listed on IDEAS
    3. repec:onb:oenbwp:y:2005:i:9:b:1 is not listed on IDEAS
    4. Laurens Swinkels & Pieter Van Der Sluis, 2006. "Return-based style analysis with time-varying exposures," The European Journal of Finance, Taylor & Francis Journals, vol. 12(6-7), pages 529-552.
    5. Konstantina Pendaraki & Michael Doumpos & Constantin Zopounidis, 2003. "Assessing Equity Mutual Funds' Performance Using a Multicriteria Methodology: A Comparative Analysis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 1(1), pages 85-104.
    6. Yunmi Kim & Douglas Stone & Tae-Hwan Kim, 2021. "Testing for structural breaks in return-based style regression models," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 35(1), pages 61-76, March.
    7. Dhruv Desai & Ashmita Dhiman & Tushar Sharma & Deepika Sharma & Dhagash Mehta & Stefano Pasquali, 2023. "Quantifying Outlierness of Funds from their Categories using Supervised Similarity," Papers 2308.06882, arXiv.org.
    8. Vipul Satone & Dhruv Desai & Dhagash Mehta, 2021. "Fund2Vec: Mutual Funds Similarity using Graph Learning," Papers 2106.12987, arXiv.org.
    9. Alexander Kempf & Peer Osthoff, 2008. "SRI Funds: Nomen est Omen," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(9-10), pages 1276-1294.
    10. Irina Bezhentseva Mateus & Cesario Mateus & Natasa Todorovic, 2019. "Benchmark-adjusted performance of US equity mutual funds and the issue of prospectus benchmarks," Journal of Asset Management, Palgrave Macmillan, vol. 20(1), pages 15-30, February.
    11. Catherine Aaron & Isabelle Bilon & Sébastien Galanti & Yamina Tadjeddine, 2005. "Les styles de gestion de portefeuille existent-ils ?," Revue d'Économie Financière, Programme National Persée, vol. 81(4), pages 171-188.
    12. Todd Houge & Tim Lughran, 2006. "Do Invesrtors Capture the Value Premium?," Financial Management, Financial Management Association International, vol. 35(2), pages 5-19, June.
    13. Moreno, David & Marco, Paulina & Olmeda, Ignacio, 2006. "Self-organizing maps could improve the classification of Spanish mutual funds," European Journal of Operational Research, Elsevier, vol. 174(2), pages 1039-1054, October.
    14. Fernando Muñoz & María Vargas & Ruth Vicente, 2021. "Style-changing behaviour in the socially responsible mutual fund industry: consequences on financial and sustainable performance," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 12(5), pages 1027-1051, February.
    15. Peng, Hongfeng & Zhang, Zhenqi & Goodell, John W. & Li, Mingsheng, 2023. "Socially responsible investing: Is it for real or just for show?," International Review of Financial Analysis, Elsevier, vol. 86(C).
    16. Robert Faff & Annette Nguyen & Bonnie H.I. Ip & Philip Gharghori, 2012. "Return-based Style Analysis in Australian Funds," Multinational Finance Journal, Multinational Finance Journal, vol. 16(3-4), pages 155-188, September.
    17. 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.
    18. Kurniawan, Meinanda & How, Janice & Verhoeven, Peter, 2016. "Fund governance and style drift," Pacific-Basin Finance Journal, Elsevier, vol. 40(PA), pages 59-72.
    19. Dimitrios Vamvourellis & Mate Attila Toth & Dhruv Desai & Dhagash Mehta & Stefano Pasquali, 2022. "Learning Mutual Fund Categorization using Natural Language Processing," Papers 2207.04959, arXiv.org.
    20. Dhagash Mehta & Dhruv Desai & Jithin Pradeep, 2020. "Machine Learning Fund Categorizations," Papers 2006.00123, arXiv.org.
    21. Wee Yeap Lau, 2019. "Private Retirement Scheme Funds: Will the Asset Allocation Strategy Work For Retirees?," Shanlax International Journal of Economics, Shanlax Journals, vol. 8(1), pages 1-13, December.
    22. Liu, Jianxiang & Yi, WenYu, 2024. "Does the style drift caused by frequent cross-industry portfolio rebalancing harm fund performance? Evidence from China," Finance Research Letters, Elsevier, vol. 60(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gro:rugsom:01e17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hanneke Tamling (email available below). General contact details of provider: https://edirc.repec.org/data/ferugnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.