Daugaard, D, The value of a Principles for Responsible Investing designation: A setting for environmental social and governance natural experiments, 2021 AFAANZ Conference, 5-7 July 2021, Virtual Conference, Online (2021) [Conference Extract]
Fund flows determine assets under management and are therefore highly valued by investment managers. This article is concerned with whether the United Nationís Principles for Responsible Investing (PRI) can drive fund flows towards socially responsible investing (SRI) funds. If so, signing the PRI will be highly valued by investment managers and enable the PRI to influence investment practices and create a sustainable financial system.
There are significant endogeneity issues encountered in fund flow analysis, so innovative techniques are necessary. Natural experiments are considered the "gold standard" for addressing endogeneity problems. SRI fund flows are an ideal context for creating natural experiments using environmental, social and governance (ESG) events. Unfortunately, the results from these experiments raise doubts about the ability of the PRI to influence SRI fund flows. This outcome questions the value of signing the PRI for investment managers and implies the PRI has limited scope to contribute to sustainable developments.
|Item Type:||Conference Extract|
|Keywords:||socially responsible investing, environmental and social governance, fund flows, natural experiment|
|Research Division:||Commerce, Management, Tourism and Services|
|Research Group:||Banking, finance and investment|
|Research Field:||Environment and climate finance|
|Objective Division:||Commercial Services and Tourism|
|Objective Group:||Financial services|
|Objective Field:||Investment services (excl. superannuation)|
|UTAS Author:||Daugaard, D (Associate Professor Dan Daugaard)|
|Deposited By:||Economics and Finance|
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