Red and blue investing: Values and finance

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• 作者：Harrison  ; Hong^a ; Leonard  ; Kostovetsky^b ;   ; ^{Leonard.kostovetsky@simon.rochester.edu}
• 关键词：Mutual funds ; Political values ; Portfolio decisions ; SRI
• 刊名：Journal of Financial Economics
• 出版年：2012
• 出版时间：January 2012
• 年：2012
• 卷：103
• 期：1
• 页码：1-19
• 全文大小：428 K

文摘

Using data on the political contributions and stock holdings of U.S. investment managers, we find that mutual fund managers who make campaign donations to Democrats hold less of their portfolios (relative to non-donors or Republican donors) in companies that are deemed socially irresponsible (e.g., tobacco, guns, or defense firms or companies with bad employee relations or diversity records). Although explicit socially responsible investing (SRI) funds are more likely to be managed by Democratic managers, this result holds for non-SRI funds and after controlling for other fund and manager characteristics. The effect is more than one-half of the underweighting observed for SRI funds.