Performance of Socially Responsible Investment Funds in China: A Comparison with Traditional Funds

Saci, Fateh; Jasimuddin, Sajjad M.; Hasan, Morshadul

doi:10.3390/su14031476

Cited by 7 publications

(8 citation statements)

References 56 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In China, social responsibility holds great importance, although the moral standards of companies remain unclear. Consequently, the Socially Responsible Investment Fund emerges as the preferred option for companies aiming to contribute to environmental protection and social welfare (Saci et al, 2022). Debates persist about whether Socially Responsible Funds truly adhere to ethical standards or if they are conventional funds masquerading as socially responsible.…”

Section: Studies On the Performance Of Socially Responsible Fundsmentioning

confidence: 99%

Socially Responsible Investment Funds—An Analysis Applied to Funds Domiciled in the Portuguese and Spanish Markets

Carvalho,

Mota,

Ramos

2023

Preprint

View full text Add to dashboard Cite

Socially Responsible Investments, also referred to as ethical or sustainable investments, have experienced rapid global growth in recent years. They represent an investment approach that incorporates social, environmental, and ethical considerations into decision-making processes. Consequently, the significance of SRIs has captured the attention of academics, prompting inquiries into the impact of integrating social criteria on portfolio performance. The primary objective of this work was to conduct a comparative study of the performance between socially responsible and non-socially responsible investment funds, using funds domiciled in Portugal and Spain. Various multi-factor models, including the three-factor model of Fama and French (1992), the four-factor model of Carhart (1997), and the five-factor model of Fama and French (2015), were employed to assess performance. The sample comprised 125 investment funds, with 43 identified as socially responsible and 82 as non-socially responsible. The study's findings indicate that there are no significant differences between socially responsible funds and their conventional counterparts. The majority of funds experience performance alterations during periods of crisis compared to crisis-free periods. Additionally, when comparing non-conditional models with conditional models, an improvement in the explanatory power of the latter is observed. This suggests that the inclusion of the dummy variable enhances the quality of fit for the models.

show abstract

Section: Studies On the Performance Of Socially Responsible Fundsmentioning

confidence: 99%

Socially Responsible Investment Funds—An Analysis Applied to Funds Domiciled in the Portuguese and Spanish Markets

Carvalho,

Mota,

Ramos

2023

Preprint

View full text Add to dashboard Cite

show abstract

“…Marti-Ballester (2021) analyzed the returns of 111 sustainable development-themed stock mutual funds in 2009-2019 using Jensen, Fama-French and Carhart's model. Saci et al (2022) investigated the performance of socially responsible investments using the daily returns of 64 funds in China between 2016 and 2019 to compare the performance of traditional funds.…”

Section: Comparative Performance Analysis Of Sustainable Themed Funds...mentioning

confidence: 99%

Comparative Performance Analysis of Sustainable Themed Funds with Traditional Funds in Turkey

2022

View full text Add to dashboard Cite

Sustainable finance aims to contribute to the development of an environmentally and socially sensitive production approach of economic activity in order to leave a more livable world to future generations with an environmental and social investment approach. It increases the importance of comparing the performances of sustainable-themed funds with traditional themed funds, for investors to consider investing with a socially responsible investment approach. In this study, the performances of sustainable-themed funds with traditional funds and indices in Turkey were analyzed comparatively. BIST Sustainable index (XUSRD) as the market index of sustainable funds; the BIST100 index (XU100) was chosen as the market index of traditional funds. Since the history of sustainable funds in Turkey is not very old, daily data for the years 2019-2022 were analyzed as the data period. In the study, firstly, the performances of the funds were compared with annual return, standard error, Sharpe ratio, Jensen's alpha and Treyner criterion. Then XU100 and XUSRD were selected as the market portfolio, and the returns and systemic risks of the portfolios were obtained with the Capital Asset Pricing Model (CAPM). According to the results obtained from the study, it has been observed that the performance of sustainable themed funds is better than their traditional substitutes and market indices.

show abstract

“…Additionally, many studies have evaluated that financial performance is significantly affected by ESG factors, whether positive (Lopez-Toro et al, 2021) or negative (Giannopoulos et al, 2022). Importantly, companies and mutual funds implementing ESG into their investment considerations have less risk as they improve stakeholder relations (Saci, Jasimuddin, and Hasan, 2022).…”

Section: A Introductionmentioning

confidence: 99%

Effects of ESG on Firm Performance and Firm Value: A Study of Indonesian and Malaysian Listed Companies

Rasyad,

Afgani,

Ali

2024

JIMS

View full text Add to dashboard Cite

The effect of ESG on firm value and financial performance of a company is a well-researched and controversial topic in academic research, as many authors conclude different results in their studies. Previous studies suggest that ESG has a positive effect on firm value or financial performance, while some studies suggest the opposite, while some studies also suggest that only specific factors within ESG such as environmental, social, and governance factors significantly affect firm value and financial performance of a company. To contribute to current literature in the field and to resolve the dispute in controversial results, this study aims to assess the significance of ESG on firm value and financial performance of Indonesian and/or Malaysian public-listed companies, to deduce whether ESG has positive or negative effect of firm value and financial performance, and to determine which individual factors of ESG has the most affect to the overall ESG score of each Indonesian and/or Malaysian public-listed companies. As there has been limited research on the topic in Indonesia and Malaysia, the author uses PLS-SEM to analyze the effects of ESG scores on firm value and financial performance of 10 Indonesian public-listed companies and 15 Malaysian public-listed companies using available financial and ESG scoring data from YahooFinance during the 3rd quarter of the 2022 year. The study done using PLS-SEM suggests that ESG has a significant positive effect on financial performance (proxied using ROA or Return of Assets) while ESG has no significant but positive effect on firm value (proxied using Tobin’s Q value). In addition, factor analysis of the PLS-SEM model shows that from three pillars of ESG, only social and governance scores have a correlation with the overall ESG score.

show abstract

Performance of Socially Responsible Investment Funds in China: A Comparison with Traditional Funds

Cited by 7 publications

References 56 publications

Socially Responsible Investment Funds—An Analysis Applied to Funds Domiciled in the Portuguese and Spanish Markets

Socially Responsible Investment Funds—An Analysis Applied to Funds Domiciled in the Portuguese and Spanish Markets

Comparative Performance Analysis of Sustainable Themed Funds with Traditional Funds in Turkey

Effects of ESG on Firm Performance and Firm Value: A Study of Indonesian and Malaysian Listed Companies

Contact Info

Product

Resources

About