The performance of socially responsible mutual funds: the role of fees and management companies

Javier Gil-Bazo, Pablo Ruiz-Verdú and Andre Santos (andreportela@gmail.com)

DEE - Working Papers. Business Economics. WB from Universidad Carlos III de Madrid. Departamento de Economía de la Empresa

Abstract: In this paper, we shed light on the debate about the financial performance of socially responsible investment (SRI) mutual funds by separately analyzing the contributions of before-fee performance and fees to SRI funds' performance and by investigating the role played by fund management companies in the determination of those variables. We apply the matching estimator methodology to obtain our results and find that in the period 1997-2005, US SRI funds had significantly higher fees and better before- and after-fee performance than conventional funds with similar characteristics. Differences, however, were driven exclusively by SRI funds run by management companies specialized in socially responsible investment.

Keywords: Socially; responsible; investment; Mutual; fund; fees; Mutual; fund; performance; Matching; estimators (search for similar items in EconPapers)
JEL-codes: A13 G12 G20 G23 (search for similar items in EconPapers)
Date: 2008-06
New Economics Papers: this item is included in nep-cfn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Journal Article: The Performance of Socially Responsible Mutual Funds: The Role of Fees and Management Companies (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:cte:wbrepe:wb083409

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