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Replication data for: Divest, Disregard, or Double Down? Philanthropic Endowment Investments in Objectionable Firms

Version
V0
Resource Type
Dataset
Creator
  • Roth Tran, Brigitte
Publication Date
2019-09-01
Description
  • Abstract

    How much, if at all, should an endowment invest in a firm whose activities run counter to the charitable missions the endowment funds? I offer the first model characterizing this type of investment decision. I introduce a strategy called "mission hedging," where—in contrast to traditional socially responsible investing—foundations may benefit from skewing investment toward the objectionable firm in order to align funding availability with need. I characterize the trade-offs driving foundation investment decisions. By leveraging the idiosyncratic firm risk typically diversified away in profit-maximizing portfolios, foundations may find that bad actors provide good opportunities to hedge mission-specific risks.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/aeri.20180347 (Text)
Publications
  • Tran, Brigitte Roth. “Divest, Disregard, or Double Down? Philanthropic Endowment Investments in Objectionable Firms.” American Economic Review: Insights 1, no. 2 (September 1, 2019): 241–56. https://doi.org/10.1257/aeri.20180347.
    • ID: 10.1257/aeri.20180347 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07

Roth Tran, Brigitte (2019): Replication data for: Divest, Disregard, or Double Down? Philanthropic Endowment Investments in Objectionable Firms. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116324