An Analysis of Organization Ethical Climate Influence, Intention and Socially Responsible Investment Behavior Among Unit Trust Fund Managers in Malaysia

2011 ◽  
Author(s):  
Abdullah Sallehhuddin ◽  
Md. Shukor Masuod ◽  
Al-Mansor Abu Said
Keyword(s):  
Ethical Climate ◽  
Socially Responsible Investment ◽  
Investment Behavior ◽  
Trust Fund ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Fund Managers ◽  
Unit Trust

scholarly journals Do Socially Responsible Investment Funds Sell Losses and Ride Gains? The Disposition Effect in SRI Funds

2021 ◽  
Vol 13 (15) ◽  
pp. 8142
Author(s):  
Beatrice Boumda ◽  
Darren Duxbury ◽  
Cristina Ortiz ◽  
Luis Vicente
Keyword(s):  
Mutual Fund ◽  
Economic Loss ◽  
Investment Strategy ◽  
Socially Responsible Investment ◽  
Disposition Effect ◽  
Socially Responsible ◽  
Investment Funds ◽  
Responsible Investment ◽  
Fund Managers ◽  
Ethical Investments

An increasing percentage of the total net assets under professional management is devoted to ethical investments. Socially responsible investment (SRI) funds have a dual objective: building an investment strategy based on environmental, social, and corporate governance (ESG) screens and providing financial returns to investors. In the current study, we investigate whether this dual objective has an influence on the behavior of mutual fund managers in the realization of gains and losses. Evidence has shown that most investors in SRI funds invest in those funds primarily because of their social concerns. If the motivations of SRI managers align with those of SRI investors, SRI managers might then have more incentives than conventional managers to hold onto losing stocks if they feel their social value compensates for the economic loss. We hypothesize that SRI managers would be less prone to the disposition effect than conventional managers. Pertaining to the disposition effect, we do not find evidence of a difference in the behavior of SRI fund managers compared with that of conventional fund managers. Our results hold, even when considering market trends, management structure, gender, and prior performance.

scholarly journals Sensitivity Of Socially Responsible Investment Behaviour To Experience And Size Of Funds

2020 ◽  
Vol 36 (2) ◽  
pp. 77-90
Author(s):  
Mohammad Talha ◽  
Abdullah Sallehhuddin Abdullah Salim ◽  
Abdul Aziz Abdul Jalil ◽  
Norzarina Md Yatim
Keyword(s):  
Ethical Climate ◽  
Talent Management ◽  
Moral Intensity ◽  
Subjective Norms ◽  
Moderating Effect ◽  
Socially Responsible ◽  
Fund Manager ◽  
Responsible Investment ◽  
Fund Managers ◽  
The Relationship

This paper examines the moderating effect of experience and size of fund towards socially responsible investment (SRI).A survey was conducted to get the responses of fund managers, and data were analysed using a multi-group approach of Structural Equation Modelling (SEM).At intentional level, there was a significant moderating effect on the relationship between attitudes and caring ethical climate towards an intention to SRI among less experienced fund managers. There was a significant moderating effect on the relationship between subjective norms and perceived behavioural control towards an intention to SRI among more experienced fund managers. There was also a significant moderating effect on the relationship between subjective norms and caring ethical climate towards an intention to SRI among small-sized fund managers. At behavioural level, there was a significant moderating effect on the relationship between moral intensity and SRI behaviour among less experienced fund managers. There was also a significant moderating effect on the relationship between moral intensity and caring ethical climate on SRI behaviour among bigger-sized fund managers. This paper conduits the literature gap by expanding the understanding on the moderating impact of experience and size of fund towards SRI, provides insights to policy makers in carrying out appropriate talent development strategies in accumulating the support of fund managers towards SRI-related initiatives in the capital market, and reveals the potential contribution of fund manager talent management in sustainable development through SRI. The paper offers vision on fund manager talent management to forefront the progress of SRI in emerging economies.

Purpose-washing of impact investing funds: motivations, occurrence and prevention

2019 ◽  
Vol 15 (7) ◽  
pp. 853-873 ◽  
Author(s):  
Suzanne Findlay ◽  
Michael Moran
Keyword(s):  
Design Methodology ◽  
Socially Responsible Investment ◽  
Global Markets ◽  
Socially Responsible ◽  
Impact Investing ◽  
Content Type ◽  
Responsible Investment ◽  
Fund Managers ◽  
Market Participants ◽  
Systematic Appraisal

Purpose As an emerging field of financing, impact investing is under-institutionalised and is in a legitimacy building phase. In an attempt to unpack how impact investing is deployed in global markets, the key elements of its definition (intentionality, returns and measurement) are examined through a review of academic and practitioner literature. A refined definition is developed which emphasises the key elements of intentionality and measurement as separating impact investment from the established field of socially responsible investment (SRI). Design/methodology/approach Funds and products from a publicly available database are systematically analysed against the refined definition to determine the rigour with which intentionality and measurement are applied by self-identified market participants. These elements are used as a proxy to determine “purpose-washing” – a process where funds are presented as impact investments but do not satisfy a tightly applied definition. Purpose-washing enables the possibility of “retrofitting”, where funds originally defined as other products (e.g. SRI) retrospectively claim to be impact investments. Findings Having found evidence of purpose-washing but not retrofitting, actions are identified to enhance impact investment’s integrity, focussing on intentionality, measurement and transparency. Clarity of definition and purpose are important for a field in the market-building phase, as a lack of clarity could have negative implications for integrity and growth. The authors postulate that purpose-washing may be attributed to twin but distinctive motivations by market participants: interest in fee-generation among fund managers and attempts to bolster field legitimacy by demonstrating sector growth among impact investing proponents. Originality value This paper represents a unique analysis of impact investments against a robust and refined definition. By doing so, it offers a systematic appraisal of impact investments and an overall assessment of market integrity in its field-building phase.

scholarly journals Explaining SRI behaviour of Malaysian unit trust fund managers using theory of planned behavior

2012 ◽  
Vol 9 (4) ◽  
pp. 108-117
Author(s):  
Mohammad Talha ◽  
Abdullah Sallehhuddin Abdullah Salim ◽  
Shukor Bin Masoud ◽  
Al-Mansor Abu Said
Keyword(s):  
Direct Effect ◽  
Perceived Control ◽  
Response Rate ◽  
Subjective Norms ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Fund Managers ◽  
Control Behavior ◽  
Unit Trust ◽  
Significant Direct Effect

This study aims to examine the impact of Theory of Planned Behavior components – attitude, subjective norms and perceived control behavior on perceived socially responsible investment (SRI) behavior among fund managers of unit trust fund companies with intention to engage in SRI as a mediating variable. This cross sectional study employs questionnaire to collect the opinion from respondents. Three hundred and twenty questionnaires have been distributed but only 84 have been returned by the fund managers, with a response rate of 26.25 per cent. A scan of such questionnaires further revealed that only 73 could be taken up for analysis. Thus, the usable rate is 22.81 percent. Structural Equation Modeling (SEM) that has been used in the study has revealed that the model has a good fit for the model (above minimum requirements for goodness of fit criteria) which indicates the appropriateness of instrument and measurement. The analysis shows that subjective norms have significant and positive direct effect on perceived SRI behavior. In addition, subjective norms also have a significant and positive indirect effect on perceived SRI behavior through intention to engage in SRI. Attitude has a positive and significant direct impact on intention, while it does not have a significant direct effect on perceived SRI behavior. Besides, the study has evidenced significant direct effect of intention on perceived SRI behavior. However, the study has not found any evidence to support the association of perceived control behavior with intention and perceived SRI behavior. The major limitation of this existing study is a lower response rate; nevertheless it provides good understanding on the interaction of attitude, subjective norms, perceived control behavior, intention and behavior in the context of socially responsible investment in emerging economies like Malaysia.

scholarly journals Responsible Investing: A Study on Non-Economic Goals and Investors’ Characteristics

2020 ◽  
Vol 9 (SI) ◽  
pp. 63-78
Author(s):  
Renuka Sharma ◽  
Kiran Mehta ◽  
Vishal Vyas
Keyword(s):  
Socially Responsible Investment ◽  
Individual Investors ◽  
Wealth Creation ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Fund Managers ◽  
Responsible Investing ◽  
Sustainable Investment ◽  
Rational Investment ◽  
The Relationship

The notion of rational investment is not attuned with the idea of socially responsible investment. Incongruence with conventional investments, the SRI/sustainable investment/ethical investment is pertained to ethical, environmental and social criteria (Eccles and Viviers,2011). All investors are not single-minded for an objective of wealth creation. The welfare of society and the environment are among the other drivers of investment. In certain cases, investors do prefer sustainable development to personal financial aspects (Beal et al., 2005). The present study has primarily focused on assessing the relationship between individual investors’ attributes and their noneconomic goal in order to comprehend their socially responsible investment behaviour specifically in Indian scenario. The findings of study are useful for fund managers, regulators and researchers as study has provided useful insights regarding behaviour of Indian investors for responsible investments.

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