This difference is substantial and highly statistically significant in all specifications. These results are consistent with two different hypotheses. First, unobservable factors at the management company level could be associated with both the decision to specialize in SRI funds and higher fees and performance. In this case, socially responsible investing itself would not have any effect on performance or fees. Alternatively, socially responsible investing could be associated with superior performance but only management companies that specialize in SRI would be able to exploit this advantage. .
