Socially responsible investment: economic and psychological aspects of mutual funds management
Abstract
Data provided by both national and international organizations reveal the growing interest of individual investors in Sustainable and Responsible Investment (SRI) funds. Although they seek positive returns, these investors also expect these funds to invest in assets that meet Environmental, Social, and corporate Governance (ESG) criteria. These criteria impose a clear constraint on the strategies that SRI fund managers can pursue. Does the dual financial and ethical objective imply a distinctive behaviour by SRI fund managers? The main purpose of this article is to provide an economic and psychological view of SRI. Based on the literature review, we analyse whether there are differences in performance between conventional and SRI funds and investigate the relationship between performance and cash flow and the existence of the disposition effect in SRI, in order to provide managers and investors with a global view for their financial decision making.
Received: 06 July 2022
Accepted: 21 July 2022
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