publication . Article . 2018

Financial Crisis and Corporate Social Responsible Mutual Fund Flows

Sitikantha Parida; Zhihong Wang;
Open Access
  • Published: 05 Jan 2018 Journal: International Journal of Financial Studies, volume 6, page 8 (eissn: 2227-7072, Copyright policy)
  • Publisher: MDPI AG
Abstract
In this paper, we investigate investment flows into mutual funds that hold more high corporate social responsible stocks (top CSR funds) vs. mutual funds that hold more low corporate social responsible stocks (bottom CSR funds). Using a large sample of equity mutual funds spanning 2003–2012, we find that top CSR funds on average receive about 5% less investment per annum compared to the other funds; whereas bottom CSR funds receive about 5.6% more investments. These relative negative and positive flows into the top and bottom CSR funds respectively were larger during the pre-financial crisis period (2003–2007). This trend, however, reversed during the financial ...
Subjects
free text keywords: G01, G11, G23, corporate social responsibility, mutual fund flows, financial crisis, flight to quality, ddc:330, Finance, HG1-9999
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