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The ethical finance as a response to the financial crises: an empirical survey of European SRFs performance


  • Francesco Gangi


  • Carmen Trotta



The research aims to verify the linkage between ethics and financial value through the analysis of the risk/return relationship of the socially responsible funds (SRFs). In particular, the study deepens theoretical and empirical aspects of the ethical finance during the last two strong financial crisis of 2008 and 2011, in order to verify if ethics pays-off during the most severe bear phases of the markets. So, the empirical work is focused on the comparison between the financial performance of a European panel of 107 Socially Responsible Funds and 87 conventional funds that are listed by Morningstar Direct. The results are consistent with the hypothesis for which the investments that consider social and ethical issues in the allocation process are less aggressive and able to contain the negative effects during the apical phases of crises. In this sense, the SRFs appear to behave as a sort of “refuge funds” for the investor. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Francesco Gangi & Carmen Trotta, 2015. "The ethical finance as a response to the financial crises: an empirical survey of European SRFs performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(2), pages 371-394, May.
  • Handle: RePEc:kap:jmgtgv:v:19:y:2015:i:2:p:371-394
    DOI: 10.1007/s10997-013-9264-7

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    References listed on IDEAS

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    Cited by:

    1. repec:spt:apfiba:v:8:y:2018:i:1:f:8_1_4 is not listed on IDEAS
    2. Francesco Gangi & Ida Camminatiello & Nicola Varrone, 2016. "Analysis of Private Socially Responsible Investment: The Impact of Personal Concern with Corporate Social Responsibility," Review of Economics & Finance, Better Advances Press, Canada, vol. 6, pages 47-62, November.

    More about this item


    Ethics; Ethical finance; Corporate social responsibility; Socially responsible investment; M14; G11; G23;

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors


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