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dc.contributor.authorCopp, R
dc.contributor.authorKremmer, ML
dc.contributor.authorRoca, E
dc.contributor.editorRobert Bianchi
dc.date.accessioned2017-05-03T11:42:09Z
dc.date.available2017-05-03T11:42:09Z
dc.date.issued2010
dc.date.modified2011-01-25T06:53:39Z
dc.identifier.issn1030-9616
dc.identifier.doi10.1108/10309611011092583
dc.identifier.urihttp://hdl.handle.net/10072/35781
dc.description.abstractPurpose - The purpose of this paper is to investigate whether socially responsible investment (SRI) is less sensitive to market downturns than conventional investments; the legal implications for fund managers and trustees; and possible legislative reforms to allow conventional funds more scope to invest in SRI. Design/methodology/approach - The paper uses the market model to estimate betas over the past 15 years for SRI funds and conventional investment funds during economic downturns, as distinct from during more "normal" (non-recessionary) economic times. Findings - The beta risk of SRI, both in Australia and internationally, increases more than that of conventional investment during economic downturns. Traditional fund managers and trustees in Australia are therefore likely to breach their fiduciary duties if they go long - or remain long - in SRI funds during economic downturns, unless relevant legislation is reformed. Research limitations/implications - The methodology assumes that alpha and beta in the market model are constant. Second, it categorises the state of the market into "normal" economic conditions and downturns using dummy variables. More sophisticated techniques could be used in future research. Practical implications - The current law would prevent conventional funds from investing in SRI. If SRI is viewed as socially desirable, useful legislative reforms could include explicitly overriding the common law to allow conventional funds to invest in SRI; introducing a 150 percent tax deduction or investment allowance for SRI; and allowing SRI sub-funds to obtain deductible gift recipient status from the Australian Tax Office and other taxation authorities. Originality/value - The accurate assessment of risk in SRIs is an area which, despite its serious legal implications, is yet to be subjected to rigorous empirical investigation.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.format.extent204463 bytes
dc.format.mimetypeapplication/pdf
dc.languageEnglish
dc.language.isoeng
dc.publisherEmerald Group Publishing
dc.publisher.placeUnited Kingdom
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofpagefrom254
dc.relation.ispartofpageto266
dc.relation.ispartofissue3
dc.relation.ispartofjournalAccounting Research Journal
dc.relation.ispartofvolume23
dc.rights.retentionY
dc.subject.fieldofresearchAccounting, auditing and accountability
dc.subject.fieldofresearchBanking, finance and investment
dc.subject.fieldofresearchInvestment and risk management
dc.subject.fieldofresearchcode3501
dc.subject.fieldofresearchcode3502
dc.subject.fieldofresearchcode350208
dc.titleShould Funds Invest in Socially Responsible Investments during Downturns: Financial and Legal Implications of the Fund Manager’s Dilemma
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.facultyGriffith Business School, Department of Accounting, Finance and Economics
gro.rights.copyright© 2010 Emerald. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
gro.date.issued2010
gro.hasfulltextFull Text
gro.griffith.authorCopp, Richard I.


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