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SOCIALLY RESPONSIBLE INVESTING AND PORTFOLIO DIVERSIFICATION
Author(s) -
Bello Zakri Y.
Publication year - 2005
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/j.1475-6803.2005.00113.x
Subject(s) - diversification (marketing strategy) , portfolio , fund of funds , business , closed end fund , passive management , foreign portfolio investment , investment portfolio , financial economics , global assets under management , monetary economics , economics , finance , institutional investor , microeconomics , return on investment , corporate governance , open ended investment company , marketing , production (economics) , market liquidity
I use a sample of socially responsible stock mutual funds matched to randomly selected conventional funds of similar net assets to investigate differences in characteristics of assets held, portfolio diversification, and variable effects of diversification on investment performance. I find that socially responsible funds do not differ significantly from conventional funds in terms of any of these attributes. Moreover, the effect of diversification on investment performance is not different between the two groups. Both groups underperform the Domini 400 Social Index and S&P 500 during the study period.