Grönblekningens effekt på fondflöden
(2025) NEKH02 20251Department of Economics
- Abstract
- This thesis investigates the effect of fund reclassification under the EU Sustainable Finance Disclosure Regulation (SFDR) on capital flows in the Swedish mutual fund market. Specifically, this study examines whether a downgrade from Article 9 to Article 8 affects investor behavior by analyzing net fund flows before and after reclassification. The study is based on a dataset covering the period 2021–2023 and applies a Difference-in-Differences methodology with fund specific fixed effects, comparing downgraded funds to a control group of Article 9 funds.
Contrary to expectations based on prior research and signaling theory, the results indicate no statistically significant effect on fund flows following the downgrade. Several potential... (More) - This thesis investigates the effect of fund reclassification under the EU Sustainable Finance Disclosure Regulation (SFDR) on capital flows in the Swedish mutual fund market. Specifically, this study examines whether a downgrade from Article 9 to Article 8 affects investor behavior by analyzing net fund flows before and after reclassification. The study is based on a dataset covering the period 2021–2023 and applies a Difference-in-Differences methodology with fund specific fixed effects, comparing downgraded funds to a control group of Article 9 funds.
Contrary to expectations based on prior research and signaling theory, the results indicate no statistically significant effect on fund flows following the downgrade. Several potential explanations are discussed, including the limited sample size, the use of annual data, and the possibility that the downgrades were perceived as precautionary rather than indicative of lower sustainability ambition.
The findings contribute to the growing literature on sustainable finance by highlighting the complexity of investor responses to regulatory changes and the importance of context when interpreting sustainability related fund labels. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9207528
- author
- Rydberg, Felicia LU and Ryhage, Isabel LU
- supervisor
- organization
- course
- NEKH02 20251
- year
- 2025
- type
- M2 - Bachelor Degree
- subject
- keywords
- SFDR, fund flows, sustainability, greenwashing, reclassification
- language
- Swedish
- id
- 9207528
- date added to LUP
- 2025-09-12 09:16:05
- date last changed
- 2025-09-12 09:16:05
@misc{9207528,
abstract = {{This thesis investigates the effect of fund reclassification under the EU Sustainable Finance Disclosure Regulation (SFDR) on capital flows in the Swedish mutual fund market. Specifically, this study examines whether a downgrade from Article 9 to Article 8 affects investor behavior by analyzing net fund flows before and after reclassification. The study is based on a dataset covering the period 2021–2023 and applies a Difference-in-Differences methodology with fund specific fixed effects, comparing downgraded funds to a control group of Article 9 funds.
Contrary to expectations based on prior research and signaling theory, the results indicate no statistically significant effect on fund flows following the downgrade. Several potential explanations are discussed, including the limited sample size, the use of annual data, and the possibility that the downgrades were perceived as precautionary rather than indicative of lower sustainability ambition.
The findings contribute to the growing literature on sustainable finance by highlighting the complexity of investor responses to regulatory changes and the importance of context when interpreting sustainability related fund labels.}},
author = {{Rydberg, Felicia and Ryhage, Isabel}},
language = {{swe}},
note = {{Student Paper}},
title = {{Grönblekningens effekt på fondflöden}},
year = {{2025}},
}