Authors: Praveen K. Das; S.P. Uma Rao
Addresses: B.I. Moody III College of Business Administration, University of Louisiana at Lafayette, Lafayette, LA 70504, USA ' B.I. Moody III College of Business Administration, University of Louisiana at Lafayette, Lafayette, LA 70504, USA
Abstract: This paper examines the impact of 12b-1 fees of socially responsible mutual funds on funds' shareholders. Using a sample of 262 socially responsible funds, we find that 12b-1 fees are mainly deadweight costs and do not add any economic value to funds' shareholders. Our results suggest that fund shareholders of socially responsible funds pay the costs of 12b-1 plans but do not benefit in the form of lower operating expenses per share.
Keywords: socially responsible mutual funds; 12b-1 fees; ethical funds; ethics; shareholders; added value; social responsibility.
International Journal of Financial Services Management, 2016 Vol.8 No.4, pp.291 - 297
Accepted: 02 Sep 2016
Published online: 30 Jan 2017 *