An Empirical Study of Ethical Fund Performance and Its Relation with Fund Characteristics

The increasingly popularity of social responsible investing is a remarkable phenomenon of recent decades. And ethical funds have experienced rapid growth around the world. The evaluation of ethical fund performance has been achieving a lot of academic interests. This study employed a time series dat...

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Main Author: Chen, Jiaqi
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2013
Online Access:https://eprints.nottingham.ac.uk/26656/
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author Chen, Jiaqi
author_facet Chen, Jiaqi
author_sort Chen, Jiaqi
building Nottingham Research Data Repository
collection Online Access
description The increasingly popularity of social responsible investing is a remarkable phenomenon of recent decades. And ethical funds have experienced rapid growth around the world. The evaluation of ethical fund performance has been achieving a lot of academic interests. This study employed a time series data to examine the influence of market status and fund characteristics on the performance of ethical funds. Three mutual fund performance measurements are utilized in this study, which are 1-factor model from Sharp (1964) and Lintner (1965), 3-factor model from Fama and French's (1993), and 4-factor model from Carhart (1997). Mature, growing, and initial market statuses and fund characteristics which are fund size, age, expense ratio and social performance, are analysed and testes whether they have influences on the performance of ethical funds. This study obtains some findings. Market status has a significant influence on ethical fund performance. And fund characteristics have different effects on performance in different markets. There are two more interesting findings: a critical value exists in both fund size and fund social performance. Keywords: SRI, ethical funds, financial performance, fund characteristics, social performance
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format Dissertation (University of Nottingham only)
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spelling nottingham-266562017-10-19T13:31:38Z https://eprints.nottingham.ac.uk/26656/ An Empirical Study of Ethical Fund Performance and Its Relation with Fund Characteristics Chen, Jiaqi The increasingly popularity of social responsible investing is a remarkable phenomenon of recent decades. And ethical funds have experienced rapid growth around the world. The evaluation of ethical fund performance has been achieving a lot of academic interests. This study employed a time series data to examine the influence of market status and fund characteristics on the performance of ethical funds. Three mutual fund performance measurements are utilized in this study, which are 1-factor model from Sharp (1964) and Lintner (1965), 3-factor model from Fama and French's (1993), and 4-factor model from Carhart (1997). Mature, growing, and initial market statuses and fund characteristics which are fund size, age, expense ratio and social performance, are analysed and testes whether they have influences on the performance of ethical funds. This study obtains some findings. Market status has a significant influence on ethical fund performance. And fund characteristics have different effects on performance in different markets. There are two more interesting findings: a critical value exists in both fund size and fund social performance. Keywords: SRI, ethical funds, financial performance, fund characteristics, social performance 2013-09-19 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26656/1/Dissertation_.pdf Chen, Jiaqi (2013) An Empirical Study of Ethical Fund Performance and Its Relation with Fund Characteristics. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Chen, Jiaqi
An Empirical Study of Ethical Fund Performance and Its Relation with Fund Characteristics
title An Empirical Study of Ethical Fund Performance and Its Relation with Fund Characteristics
title_full An Empirical Study of Ethical Fund Performance and Its Relation with Fund Characteristics
title_fullStr An Empirical Study of Ethical Fund Performance and Its Relation with Fund Characteristics
title_full_unstemmed An Empirical Study of Ethical Fund Performance and Its Relation with Fund Characteristics
title_short An Empirical Study of Ethical Fund Performance and Its Relation with Fund Characteristics
title_sort empirical study of ethical fund performance and its relation with fund characteristics
url https://eprints.nottingham.ac.uk/26656/