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Open access articles for 2015

Three articles recently published by researchers from within the Newton Centre for Endowment Asset Management have been granted open access. No sign up or registration is needed - just click and read.

The first two articles have been granted permanent open access by the journal publishers. The final article has been granted free access until 19 December 2015. Anyone wishing to read these articles need only click on the link to be taken to the final version of the article for free.

Dimson, Karakas & Li (2015) "Active ownership." The Review of Financial Studies, 29(12)

This paper analyses an extensive proprietary database of corporate social responsibility engagements with US public companies from 1999-2009. Engagements address environmental, social, and governance concerns. Successful (unsuccessful) engagements are followed by positive (zero) abnormal returns. Companies with inferior governance and socially conscious institutional investors are more likely to be engaged. Success in engagements is more probable if the engaged firm has reputational concerns and higher capacity to implement changes. Collaboration among activists is instrumental in increasing the success rate of environmental/social engagements. After successful engagements, particularly on environmental/social issues, companies experience improved accounting performance and governance and increased institutional ownership.

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Chambers & Dimson (2015). "The British origins of the US endowment model." Financial Analysts Journal, 71(2)

The US endowment model is an approach to investing popularized by Yale University that emphasises diversification and active management of equity-oriented, illiquid assets. The writings of the British economist John Maynard Keynes were a considerable influence on the investment philosophy of Yale's chief investment officer, David Swensen. How did Keynes gain these insights? We track Keynes's experiences managing the endowment of King's College, Cambridge, and show how some of the lessons he learned remain relevant to endowments and foundations today.

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Dimson, Rousseau & Spaenjers (2015) "The price of wine." Journal of Financial Economics, 118(2)

Using historical price records for Bordeaux Premiers Crus, we examine the impact of aging on wine prices and the long-term investment performance of fine wine. In line with the predictions of an illustrative model, young maturing wines from high-quality vintages provide the highest financial returns. Past maturity, famous châteaus deliver growing non-pecuniary benefits to their owners. Using an arithmetic repeat-sales regression over 1900-2012, we estimate a real financial return to wine investment (net of storage costs) of 4.1 per cent, which exceeds bonds, art, and stamps. Returns to wine and equities are positively correlated. Finally, we find evidence of in-sample return predictability.

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