We investigate whether positive or negative screening impacts the performance and risk of socially responsible mutual funds. We mimic the characteristics of mutual funds and bootstrap firm returns to form portfolios which reflect actual mutual fund holdings. We find positive screening results in...

This work makes a significant contribution to the academic theme of financial performance of socially responsible mutual funds (SRMF) by studying the effects of social screenings size over the ethical mutual funds risk-adjusted performance. It also examines the effect of the amount of background...

This article establishes index suitability on a risk-adjusted basis for socially responsible investment (SRI) mutual funds that specify small-to-mid- or large-capitalization indexes as their performance benchmarks. Using a four-factor model, the authors calculate factor loadings for SRI mutual...

This paper examines how equity mutual fund managers make decisions on investing in ESG stocks. Using investor flows to proxy for fund managers' pecuniary incentive, we show that mutual funds with flows highly sensitive to performance invest less in ESG stocks, while funds with flows positively...