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Does corporate social responsibility affect mutual fund performance and flows?

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  • El Ghoul, Sadok
  • Karoui, Aymen

Abstract

We use an asset-weighted composite corporate social responsibility (CSR) fund score to study the effects of CSR on fund performance and flows. Compared to low-CSR funds, high-CSR funds display poorer performance, stronger performance persistence, a weaker performance-flow relationship, and comparable persistence in flows. These findings are consistent with investors in high-CSR funds deriving utility from non-performance attributes.

Suggested Citation

  • El Ghoul, Sadok & Karoui, Aymen, 2017. "Does corporate social responsibility affect mutual fund performance and flows?," Journal of Banking & Finance, Elsevier, vol. 77(C), pages 53-63.
    • Handle: RePEc:eee:jbfina:v:77:y:2017:i:c:p:53-63
    DOI: 10.1016/j.jbankfin.2016.10.009
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    References listed on IDEAS

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    More about this item

    Keywords

    Corporate social responsibility; Mutual fund performance; Mutual fund flows; Socially responsible investing;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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