Socially responsible investment and managerial myopic behaviors: A case of Taiwan

• Main Authors: Miao-han Sun, 孫妙函
• Other Authors: 邱慈觀
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/86983987568400605993

碩士 === 國立中央大學 === 財務金融學系 === 101 === This paper explores whether a myopia phenomenon exhibits in Taiwan’s socially responsible investment (SRI) mutual funds. Myopia as an overweighting of a firm’s expected short-term earnings and an underweighting of expected long-term earnings. Socially responsible investment concerns about social, environmental and corporate governance (ESG) issues and it takes into account both the investors needs and investment’s impact on society. It is interests in long-term oriented investment strategies that include sustainability investing. Using socially responsible investment strategies can improve the degree of myopia phenomenon. We would like to examine do the socially responsible investment mutual funds choose its component stocks depending on their long-term value instead of short-term earnings. On the other hand, whether non-SRI mutual funds are concern about a firm’s short-term earnings and exhibit a myopia phenomenon? In addition, we apply CAPM, three-factor model and four-factor model to examine the difference of financial performances between SRI and non-SRI mutual funds. And use a myopia proxy variable to explore the degree of myopia. Our empirical results show that SRI mutual funds pay more attention on long-term value. Non-SRI mutual funds exhibit a myopia phenomenon. By comparison, non-SRI mutual funds are more myopic than SRI funds. Also, there is no significant difference of financial performance between these two kinds of mutual funds.