eCite Digital Repository

The value of a Principles for Responsible Investing designation: A setting for environmental social and governance natural experiments

Citation

Daugaard, D, The value of a Principles for Responsible Investing designation: A setting for environmental social and governance natural experiments, 3rd Annual Conference of the Global Research Alliance for Sustainable Finance and Investment (GRASFI 2020), 8-11 September 2020, Virtual Conference, Online (New York, USA) (2020) [Refereed Conference Paper]


Preview
PDF
Pending copyright assessment - Request a copy
834Kb
  

Official URL: https://ccsi.columbia.edu/events/global-research-a...

Abstract

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 are 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 Details

Item Type:Refereed Conference Paper
Keywords:socially responsible investing, natural experiment, environmental, social and governance issues, fund flows
Research Division:Commerce, Management, Tourism and Services
Research Group:Banking, finance and investment
Research Field:Finance
Objective Division:Commercial Services and Tourism
Objective Group:Financial services
Objective Field:Finance services
UTAS Author:Daugaard, D (Associate Professor Dan Daugaard)
ID Code:148901
Year Published:2020
Deposited By:Finance
Deposited On:2022-02-17
Last Modified:2022-02-18
Downloads:0

Repository Staff Only: item control page