{"title":"Values and Value: University Endowments, Fiduciary Duties, and ESG Investing","authors":"Susan N. Gary","doi":"10.2139/SSRN.2656640","DOIUrl":"https://doi.org/10.2139/SSRN.2656640","url":null,"abstract":"The trustees managing university endowment funds must comply with fiduciary duties that require the trustees to act in the best interests of the university and to act as prudent investors when managing the funds. This article shows that these fiduciaries may adopt investment policies that consider material environmental, social, and governance (ESG) factors as part of an overall investment strategy. The article explains why older arguments that fiduciaries should avoid “social investing” are no longer relevant and how the prudent investor standard has evolved to include ESG investing. The article discusses the changes in socially responsible investing since the anti-apartheid era and reviews a significant number of empirical studies that show that ESG investing has had a neutral or positive effect on financial return. Based on the empirical work, evidence of the financial industry’s growing use of extra-financial factors in investment analysis, and recent guidance from the Department of Labor, the article concludes that a trustee responsible for a university endowment will not breach the duty of loyalty or the duty to act as a prudent investor by directing the endowment’s use of ESG investing as part of an overall financial investment strategy..","PeriodicalId":208593,"journal":{"name":"CGN: Endowments & Foundations as Investors (Sub-Topic)","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116959626","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
B. González‐Díaz, Roberto García Fernandez, Antonio Lopez Diaz
{"title":"Audit Reports of Public State-owned Foundations: Determining Factors in Audit Opinions (El Informe de Auditoria de las Fundaciones Publicas Estatales: Factores Determinantes del Tipo de Opinion)","authors":"B. González‐Díaz, Roberto García Fernandez, Antonio Lopez Diaz","doi":"10.2139/ssrn.2170473","DOIUrl":"https://doi.org/10.2139/ssrn.2170473","url":null,"abstract":"The aim of this paper is to determine the relationship between the opinion given in audit reports of public state-owned foundations and a set of characteristics pertaining to these foundations. Establishing such a relationship should help to improve foundation management and control. To this end a theoretical framework has been built, within which the expected effects of the different audit opinion variables are presented – foundation size, type of auditor, tax-year surplus, previous year’s opinion and which government department the foundation belongs to. Then, in order to develop the study, different logistic regression models have been calculated using a sample of 256 foundations audited over the period 2002 to 2008. The results highlight the fact that the opinion given in the previous year’s audit reports of public state-owned foundations is the main factor in determining the kind of opinion given in the current year. Other opinion-influencing factors are the government department link, foundation size and type of auditor.","PeriodicalId":208593,"journal":{"name":"CGN: Endowments & Foundations as Investors (Sub-Topic)","volume":"64 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-11-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115048640","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}