Performance Persistence of Socially Responsible Investment Funds in the Asia Pacific Region

Hooi Hooi Lean, Wei Rong Ang, Russell Smyth

Research output: Chapter in Book/Report/Conference proceedingChapter (Book)Researchpeer-review

9 Citations (Scopus)

Abstract

We test for performance persistence of Socially Responsible Investment (SRI) funds in the Asia Pacific using the ranked portfolio approach and contingency tables. Overall, we find very little evidence of performance persistence. Our results are consistent with the weak form of the Efficient Market Hypothesis. From a practical perspective, our findings suggest that past performance is not a good guide to making investment decisions with respect to SRI funds and that investors can just as well engage in passive asset management, subject to dealing with agency problems.

Original languageEnglish
Title of host publicationHandbook of Asian Finance: REITs, Trading, and Fund Performance
EditorsDavid Lee Kuo Chuen, Greg N. Gregoriou
Place of PublicationSan Diego CA USA
PublisherElsevier
Pages377-392
Number of pages16
Volume2
ISBN (Electronic)9780128010631
ISBN (Print)9780128009864
DOIs
Publication statusPublished - 28 May 2014

Keywords

  • Asia pacific
  • Efficient market hypothesis
  • Investment decision
  • Performance persistence
  • Socially responsible investment

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