UNIMAL Open Conference System, 2nd International Conference on Finance Economics and Business (ICOFEB)

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THE BOARD OF DIRECTORS ROLES IN PERFORMANCE OF ESG INVESTMENT FUNDS
Rafidah binti Othman

Last modified: 2023-11-04

Abstract


Environmental, social, and governance (“ESG”) or sustainable investing has been a new phenomenon in the investment world and the demand for it has become increasing as investors require better incorporate long-term financial risks and opportunities into their investment decision-making processes to generate long-term value. Nevertheless, incorporating the environmental, social and governance categories may result in the downside risks that may erode the investment value and increase credit risk over time. Hence, portfolio managers should manage their portfolio risk efficiently in their investment strategy. Since there is lack of study on the performance of the ESG funds, especially the role of the board of director towards of the ESG fund performance, this study will analyse the role of board of director in the implications ESG criteria in the performance of investment funds. The fund performance will measure the overall, selectivity and market timing ability of the fund which will shed light on the investor’s selection of ESG funds. To examine these relationship, the study will apply a quantitative method of analysis on selected ESG funds for the period of study from years 2019 to 2022. Since the period of study covers the pandemic session, therefor this study will break the analysis to reflect on the performance during the covid-19 pandemic and post-pandemic period.


Keywords


ESG, Sustainability Finance