Ethical Window Dressing: SRI Funds are as Good as their Word

Muñoz, Fernando (Universidad de Zaragoza) ; Ortiz, Cristina (Universidad de Zaragoza) ; Vicente, Luis (Universidad de Zaragoza)

Resumen: In this research, we tested the existence of ethical window dressing in the Socially Responsible Investment (SRI) domestic equity funds registered in the US market. For this purpose, we compared the environmental, social, and corporate governance (ESG) attributes of disclosed and undisclosed portfolios. We reject that the ESG portfolio image is significantly better in reporting months than in non-reporting months. Examining portfolio trading based on different proxies, we found residual signals of ethical window dressing. None of these signals correspond to easy-to-interpret information. Thus, SRI funds do not manipulate the disclosed ESG image to attract money flows.

Idioma: Inglés

DOI: 10.1016/j.frl.2022.103109

Año: 2022

Publicado en: Finance Research Letters 49 (2022), 103109 [7 pp.]
ISSN: 1544-6123

Factor impacto JCR: 10.4 (2022)

Categ. JCR: BUSINESS, FINANCE rank: 1 / 111 = 0.009 (2022) - Q1 - T1

Factor impacto CITESCORE: 10.8 - Economics, Econometrics and Finance (Q1)

Factor impacto SCIMAGO: 2.231 - Finance (Q1)

Financiación: info:eu-repo/grantAgreement/ES/DGA/S38-20R
Financiación: info:eu-repo/grantAgreement/ES/MCIU-AEI-FEDER/RTI2018-093483-B-I00
Financiación: info:eu-repo/grantAgreement/ES/UZ/JIUZ-2020-SOC-02

Tipo y forma: Article (Published version)

Área (Departamento): Área Economía Finan. y Contab. (Dpto. Contabilidad y Finanzas)