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Sustainability in Accounting, Finance & Economics (SAFE) Brown Bag Seminar with Dr Quan Nguyen
Sustainability in Accounting, Finance & Economics (SAFE) Brown Bag Seminar with Dr Quan Nguyen
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Title Ethical Funds and Return Manipulation
Co-authored with Professor Tao Chen (Nanyang Technological University, Singapore), Professor Ben R. Marshall and Professor Nuttawat Visaltanachoti (Massey University, New Zealand), and Professor Nhut H. Nguyen (AUT, New Zealand).
Abstract:
We study whether ethical funds focusing on ESG engage in less return manipulation. We show that portfolio pumping, which involves artificially inflating end-of-period portfolio returns, is less prevalent in ethical funds. Ethical fund flows are less sensitive to returns, so ethical fund managers have less pressure to engage in pumping following poor returns. The lower return manipulation of ethical funds is more prevalent when they receive more attention and when the political environment is more supportive of ethical investment. Manager characteristics also play a role. Portfolio pumping is lower for ethical funds when the managers include females and individuals with higher education.
Bio: