The Value of "Keeping the Faith" in a Bear Market

Spohn, Karen O.
January 2009
Proceedings of the Northeast Business & Economics Association;2009, p200
Academic Journal
In this paper, I examine financial performance and investor behavior of socially responsible investing (SRI) funds during the most recent bear market (October 2007 to February 2009). Previous studies lead to but do not include this downturn. In addition, I extend the current research by estimating risk-adjusted returns and fund flows of SRI mutual funds disaggregated at the faith-based and secular fund level. Results indicate there is no significant difference in the mean financial performance between faith-based and secular funds in the U.S. from 2003 to 2009. This includes the bear market as well. In addition, investors sacrifice .264% or 26.4 basis points in financial performance to pursue the faith-based attribute.


Related Articles

  • Cointegration of Major Stock Market Indices during the 2008 Global Financial Distress. Assidenou, Komlavi Elubueni // International Journal of Economics & Finance;May2011, Vol. 3 Issue 2, p212 

    This paper investigates the cointegration properties of major capital markets indices during the September, 2008 I August, 2009 episode of the financial and banking crises originated in U.S markets. Based on daily closing prices of international stock markets indices, the analysis shows that...

  • Rationalising risk. Hugo, Janet // Finweek;11/25/2010, p46 

    The article focuses on rational investing as a strategic selection and allocation which handles the booming market in South Africa. It raises questions on the trustees investment on the overheated markets and the impact of global financial crisis to enterprises. Investment advisers common...

  • Dumping your fund. Freeman, Peter // Money (Australia Edition);Sep2009, Issue 116, p56 

    The article discusses the indicators that help investors review the funds they invested in based on the performance of these during the global financial crisis. While poor returns are not the sole basis for selling out on a fund, these can make investors work out why the funds performed poorly....

  • Full recovery? Amaral, Rodrigo // Fund Strategy;6/1/2009, p27 

    The article investigates the issue concerning the stability of the financial performance of banks in the midst of global financial crisis affecting businesses in Great Britain. It states that the financial stability of banks has caught the attention of investors due to the observation that they...

  • The Replacement of Safe Assets: Evidence from the U.S. Bond Portfolio. Bertaut, Carol; Tabova, Alexandra; Wong, Vivian // Working Papers -- U.S. Federal Reserve Board's International Fin;Oct2014, Issue 1120, preceding p1 

    The expansion in financial sector "safe" assets, largely in the form of structured products from the U.S. and the Caribbean, in the lead-up to the global financial crisis has by now been fairly well documented. Using a unique dataset derived from security-level data on U.S. portfolio holdings of...

  • Dividend Leader Duke Energy Rises Ahead Of Earnings. SCOTT STODDARD // Investors Business Daily;4/29/2016, p1 

    Top dividend stock

  • Investment Behavior and the Indian Stock Market Crash 2008: An Empirical Study of Student Investors. Ray, Koustubh Kanti // IUP Journal of Behavioral Finance;Sep2009, Vol. 6 Issue 3/4, p41 

    The year 2008 has been a year of global slowdown and slump for the global equity market, in general and stock markets of India, in particular. During 2008, Sensex (BSE Index) fell down from 21,206 (Indian Historical High of Sensex) to 16,000 points in a single month, i.e., in January 2008. In...

  • Biotech Remains Upbeat During the Summer. Burrill, G. Steven // BioPharm International;Oct2009, Vol. 22 Issue 10, p32 

    The article presents an analysis on the financial performance of the biotechnology industries in the U.S. Reportedly, the Burill Biotech Index posted a solid gain of almost 11 percent from June to August 2009 as reports surface that the economic downturn is over. The performance of biotechnology...

  • THE CHANGE OF INVESTMENTS IN GLOBAL CRISIS: PANEL DATA ANALYSIS. ┼×ener, Sefer; Savrul, Mesut // 12th International Conference on Finance & Banking: Structural &;2009, p532 

    Globalization has shown an active presence mainly in economic, political, social, cultural and technological fields. Transportation, communications, advances in manufacturing and political developments in the last 20 years have accelerated the globalization. Globalization has largely brought...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics