Socially responsible Investment Performance and the Financial System

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Can institutions explain differences in SRI markets? In this thesis Socially Responsible Investment (SRI) fund performance has been analysed for different time periods and with regards to the financial system. The performance of the SRI funds in 13 different countries has been compared to the performance of a market benchmark and they have been compared to the performance of similar conventional funds. Afterwards SRI fund performance has been analysed in a new setting: the SRI and conventional funds were categorised in two groups, either Common Law or Civil Law depending on the domicile country. Then the performance of SRI funds relative to conventional fund performance was analysed for these two groups to see if the performance of SRI funds was better relative to conventional funds in either financial system. We find that SRI funds actually mostly outperform conventional funds in the short-run, while SRI funds mostly underperform or do not statistically perform different in the long-run. We do also find that SRI funds perform relative to conventional funds better in Common Law countries than in Civil Law countries, and this performance difference increases over time.
Faculteit der Managementwetenschappen