Does Good Deed Sacrifice Financial Reward: A Study of SRI Index and Fund Performance in the UK

Socially responsible investment has experienced explosive growth during the past decade. It is interesting to know whether being socially responsible sacrifices financial reward. This study aims to examine the economic performance of SRI. In reviewing the literature, it is found that most of the stu...

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Main Author: Zhu, Qizhen
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2009
Online Access:https://eprints.nottingham.ac.uk/23087/
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author Zhu, Qizhen
author_facet Zhu, Qizhen
author_sort Zhu, Qizhen
building Nottingham Research Data Repository
collection Online Access
description Socially responsible investment has experienced explosive growth during the past decade. It is interesting to know whether being socially responsible sacrifices financial reward. This study aims to examine the economic performance of SRI. In reviewing the literature, it is found that most of the studies conclude a similar performance of SRI to conventional investment. In this study, performance of both SRI index and SRI funds are compared to the market index. Time series regression based on single index model is adopted. Jensen's alpha, Sharpe ratio, Treynor ratio, information ratio and M square measure are used as the tools to evaluate the performance. My research result shows that, (1) SRI index slightly underperform the market, and (2) SRI funds outperform both the SRI index and market index, and such outperformance is more significant during the global financial crisis in 2008.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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language English
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publishDate 2009
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spelling nottingham-230872018-02-15T20:17:05Z https://eprints.nottingham.ac.uk/23087/ Does Good Deed Sacrifice Financial Reward: A Study of SRI Index and Fund Performance in the UK Zhu, Qizhen Socially responsible investment has experienced explosive growth during the past decade. It is interesting to know whether being socially responsible sacrifices financial reward. This study aims to examine the economic performance of SRI. In reviewing the literature, it is found that most of the studies conclude a similar performance of SRI to conventional investment. In this study, performance of both SRI index and SRI funds are compared to the market index. Time series regression based on single index model is adopted. Jensen's alpha, Sharpe ratio, Treynor ratio, information ratio and M square measure are used as the tools to evaluate the performance. My research result shows that, (1) SRI index slightly underperform the market, and (2) SRI funds outperform both the SRI index and market index, and such outperformance is more significant during the global financial crisis in 2008. 2009-09-23 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/23087/1/dissertation.pdf Zhu, Qizhen (2009) Does Good Deed Sacrifice Financial Reward: A Study of SRI Index and Fund Performance in the UK. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Zhu, Qizhen
Does Good Deed Sacrifice Financial Reward: A Study of SRI Index and Fund Performance in the UK
title Does Good Deed Sacrifice Financial Reward: A Study of SRI Index and Fund Performance in the UK
title_full Does Good Deed Sacrifice Financial Reward: A Study of SRI Index and Fund Performance in the UK
title_fullStr Does Good Deed Sacrifice Financial Reward: A Study of SRI Index and Fund Performance in the UK
title_full_unstemmed Does Good Deed Sacrifice Financial Reward: A Study of SRI Index and Fund Performance in the UK
title_short Does Good Deed Sacrifice Financial Reward: A Study of SRI Index and Fund Performance in the UK
title_sort does good deed sacrifice financial reward: a study of sri index and fund performance in the uk
url https://eprints.nottingham.ac.uk/23087/