Bensen, Karen L. and Jacquelin E. Humphrey, "Socially Responsible Investment funds: Investor reaction to current and past returns", Journal of Banking and Finance, 2008.

Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1001372

The paper is closely related to Bollen's (2004) emprical work on SRI and conventional mutual fund flows. One of the main extensions of this study, however, is that persistence in SRI fund flows is also examined. Specifcally, the paper compares the determinants of fund flows for socially responsible investment (SRI) funds and conventional funds in the United States. The results suggest SRI fund flows are less sensitive to returns than conventional funds. Also, fund flow is persistent and SRI investors are more likely to invest in a fund they already own relative to conventional investors. These reinvestments could reflect the difficulty (or relatively higher search costs) that socially responsible investors are confronted with in finding alternative funds that meet their non-financial objectives.