Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Haigh
Author-X-Name-First: Matthew
Author-X-Name-Last: Haigh
Title: The Journal of Sustainable Finance & Investment
Journal: Journal of Sustainable Finance & Investment
Pages: 3-4
Issue: 1
Volume: 1
Year: 2011
Month: 2
X-DOI: 10.3763/jsfi.2010.0001
File-URL: http://hdl.handle.net/10.3763/jsfi.2010.0001
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:1:p:3-4
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin J. Richardson
Author-X-Name-First: Benjamin J.
Author-X-Name-Last: Richardson
Title: From fiduciary duties to fiduciary relationships for socially responsible investing: responding to the will of beneficiaries
Abstract:
This article examines whether socially responsible investing (SRI) may be
legally permissible if it fulfils the will of the
beneficiaries in a fiduciary relationship, and considers
potential legal reforms to give better effect to the interests of
beneficiaries. It thus examines a relatively neglected aspect of fiduciary
finance, which so far has focused on whether SRI is ‘financially
material’ to investment performance. It argues that by reframing
fiduciary finance as an active relationship rather than
merely the mechanical application of legal duties, we may allow trustees
to invest socially pursuant to the wishes of beneficiaries. However, this
article also suggests that considerable legal and practical obstacles
confront this path to SRI. They include the trustees' duty to treat
different beneficiaries even-handedly and the traditionally passive role
that trust law has cast beneficiaries. Reliance on widely held social
customs and evaluation of third parties' interests as a proxy for the will
of beneficiaries, and the role of statutory reforms mandating consultation
with and representation of beneficiaries on the governing boards of
trustees, are also considered in this article. It concludes by suggesting
some potential legal reforms to strengthen reliance on the will of
beneficiaries as a means of SRI.
Journal: Journal of Sustainable Finance & Investment
Pages: 5-19
Issue: 1
Volume: 1
Year: 2011
Month: 2
X-DOI: 10.3763/jsfi.2010.0002
File-URL: http://hdl.handle.net/10.3763/jsfi.2010.0002
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:1:p:5-19
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Cadman
Author-X-Name-First: Timothy
Author-X-Name-Last: Cadman
Title: Evaluating the governance of responsible investment institutions: an environmental and social perspective
Abstract:
This article addresses some of the problems associated with the
integration of environmental and social values into the activities of
contemporary responsible investment institutions. The first of these
relates to the current participation gap between internal and external
interests in responsible investment decision-making. The second problem
concerns the lack of certainty regarding the normative basis under which
multi-stakeholders should participate in institutional governance.
Thirdly, there is at present no analytical framework with which to
evaluate the institutional quality of responsible investment within the
context of the global economy. In response, and building upon existing
research in the realms of international relations and environmental
politics, the article uses a framework of principles, criteria and
indicators to evaluate responsible investment institutions. The
assumptions of this framework are tested against a small-scale attitudes
survey regarding the governance quality of contemporary responsible
investment institutions. Recognizing the shortcomings of such a small
study, the article nevertheless finds a variety of perspectives, which
indicate that the integration of multi-stakeholders in responsible
investment institutions still has some way to go. The article concludes
with some observations on the nature of stakeholder involvement in
responsible investment, comments on the extent to which the environmental
social aspects of governance can be said to be institutionally embedded,
and offers some reflections on the contribution of such an approach to
governance analysis as a method for evaluating the contribution of
responsible investment institutions to advancing sustainable development.
Journal: Journal of Sustainable Finance & Investment
Pages: 20-29
Issue: 1
Volume: 1
Year: 2011
Month: 2
X-DOI: 10.3763/jsfi.2010.0004
File-URL: http://hdl.handle.net/10.3763/jsfi.2010.0004
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:1:p:20-29
Template-Type: ReDIF-Article 1.0
Author-Name: Taylor R. Gray
Author-X-Name-First: Taylor R.
Author-X-Name-Last: Gray
Title: Mapping a corporate governance exchange: a survey of Canadian shareholder resolutions 2000--2009
Abstract:
The landscape of shareholder resolutions within an economy provides
insight into the various perspectives as to what constitutes appropriate
corporate forms and functions. This landscape arises from a community of
practice and amounts to a public corporate governance exchange. Analysis
of all shareholder resolutions filed with Canadian corporations from 2000
to 2009 reveals that Canada's distinctly multi-jurisdictional model of
corporate governance and preponderance of block holdings serve to
significantly limit the corporate governance exchange. Compounding such
limitations is the tendency of large Canadian institutional shareholders
to refrain from engaging in the public corporate governance exchange,
thereby shrouding the behaviour of some of the most potentially
influential flows of finance. Interestingly, Canadian shareholders engage
in issues across 25 distinct themes relating to corporate environmental,
social and/or governance performance while favouring the latter. Perhaps
most consequentially, however, the public Canadian corporate governance
exchange is distinctly multi-jurisdictional, thereby indicating potential
regional divergence.
Journal: Journal of Sustainable Finance & Investment
Pages: 30-43
Issue: 1
Volume: 1
Year: 2011
Month: 2
X-DOI: 10.3763/jsfi.2010.0005
File-URL: http://hdl.handle.net/10.3763/jsfi.2010.0005
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:1:p:30-43
Template-Type: ReDIF-Article 1.0
Author-Name: Ian Hamilton
Author-X-Name-First: Ian
Author-X-Name-Last: Hamilton
Author-Name: Jessica Eriksson
Author-X-Name-First: Jessica
Author-X-Name-Last: Eriksson
Title: Influence strategies in shareholder engagement: a case study of all Swedish national pension funds
Abstract:
Investors spend money and resources trying to reduce the environmental,
social and governance risks in companies they own. If unattended, these
risks may cause reputational damage not only to the portfolio firm but
also to its owner. In this article, we study five Swedish national pension
funds and the influence strategies used in shareholder engagement.
Knowledge about influence strategies is important because successful
shareholder engagements can lead to more sustainable corporate behaviour
and a lower risk to the investor. In addition to the traditional power and
legitimacy dependencies that have been reported as influential in deciding
stakeholder salience, our findings reveal five additional factors useful
for determining influence strategies in shareholder engagement. We provide
a conceptual model showing how these factors interlink with choices of
influence strategies, offering a practical use of this study. Stakeholder
theory has been used as our theoretical frame of reference, based on
existing influence strategy literature using a stakeholder—firm
perspective.
Journal: Journal of Sustainable Finance & Investment
Pages: 44-61
Issue: 1
Volume: 1
Year: 2011
Month: 2
X-DOI: 10.3763/jsfi.2010.0006
File-URL: http://hdl.handle.net/10.3763/jsfi.2010.0006
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:1:p:44-61
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel A. Huppé
Author-X-Name-First: Gabriel A.
Author-X-Name-Last: Huppé
Author-Name: Tessa Hebb
Author-X-Name-First: Tessa
Author-X-Name-Last: Hebb
Title: The virtue of CalPERS' Emerging Equity Markets Principles
Abstract:
This article argues that CalPERS' new principles-based approach to
investing in emerging markets stands at the midpoint between its previous
alpha-generation policy of complete country-level divestment and its beta
enhancement associated with universal investing in its domestic and
developed markets. Although CalPERS' previous policy addressed macro-level
standards at a country level by negatively screening out companies in
restricted countries, it precluded CalPERS' normal practice of corporate
engagement to raise environmental, social and governance (ESG) standards
at the company level in these markets. We argue that the new policy brings
CalPERS' emerging market portfolio more closely in line with its policies
of engagement. We describe this policy as ‘enhanced alpha
generation’. We use CalPERS' emerging market portfolio holdings
data and cross-reference these company holdings with KLD data to contract
extra-financial merits of the new policy. We further examine the share
prices of these firms against standard industry benchmarks to determine
the policy's material impact on CalPERS' portfolio. We conduct interviews
with CalPERS' investment managers—both internal and
external—to determine how the new emerging market investment
principles are incorporated in investment processes. This allows us to
identify two approaches to the implementation of the Principles: a
‘hard-fast’ screening approach, and a ‘value
tradeoff’ approach. One of which entailed significant opportunity
costs. These findings, when assessed in the context of various trends in
the investment environment, and issues brought fourth in our
interviews—with related investment practitioners, CalPERS'
trustees, and leading ESG experts at KLD and Verité—sheds light on
the future state of ESG investing in emerging markets.
Journal: Journal of Sustainable Finance & Investment
Pages: 62-76
Issue: 1
Volume: 1
Year: 2011
Month: 2
X-DOI: 10.3763/jsfi.2010.0007
File-URL: http://hdl.handle.net/10.3763/jsfi.2010.0007
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:1:p:62-76
Template-Type: ReDIF-Article 1.0
Author-Name: Eleanor Bloxham
Author-X-Name-First: Eleanor
Author-X-Name-Last: Bloxham
Title: Corporate governance and sustainability: new and old models of thinking
Abstract:
The definition of investor must be stretched beyond normal nomenclature
to encompass all stakeholders of the firm, including internal decision
makers, to understand sustainable finance in its broadest context. A
robust corporate governance model aids the assessment of firms chosen for
investment and can be used to answer the question of whether or not
corporate governance and allegiance to sustainability is implemented in a
meaningful way—perhaps yielding some surprising answers.
Journal: Journal of Sustainable Finance & Investment
Pages: 77-80
Issue: 1
Volume: 1
Year: 2011
Month: 2
X-DOI: 10.3763/jsfi.2010.0003
File-URL: http://hdl.handle.net/10.3763/jsfi.2010.0003
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:1:p:77-80
Template-Type: ReDIF-Article 1.0
Author-Name: Steve Waygood
Author-X-Name-First: Steve
Author-X-Name-Last: Waygood
Title: How do the capital markets undermine sustainable development? What can be done to correct this?
Abstract:
This article sets out how the capital markets relate to sustainable
development issues and makes some modest proposals for how to improve our
capital markets. It argues that capital markets' influence over corporate
sustainable development originates via two principal routes: (i) financial
influence—the buying and selling of equity shares and debt on the
capital market influences the cost of capital for listed companies; and,
(ii) investor advocacy influence—shareholders are the principals of
the business and can exercise their rights of share ownership over their
agents, the company directors, by sending explicit signals regarding the
management of the company. Capital markets generally do not need to
understand nor reward sustainable behaviour. This is either because the
markets are inefficient and do not reward good behaviour, or because
market failures means that investors do not need to worry about the very
long term costs as they are outside of their investment time horizons. In
order to change this, we should focus on the incentives of all key players
within the capital supply chain such that they are all sanctioned and
incentivized partly on their sustainability performance. The market also
needs much better market information on the sustainability performance of
companies. Better training of market participants on the materiality of
sustainability issues as well as how they can be factored into valuation
analysis would also help. However, before capital markets can be genuinely
sustainable we need capital market policy makers to have greater regard
for future generations when setting policy. This will require greater
government intervention, particularly around the regulation of investor
delivery of responsible ownership.
Journal: Journal of Sustainable Finance & Investment
Pages: 81-87
Issue: 1
Volume: 1
Year: 2011
Month: 2
X-DOI: 10.3763/jsfi.2010.0008
File-URL: http://hdl.handle.net/10.3763/jsfi.2010.0008
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:1:p:81-87
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Haigh
Author-X-Name-First: Matthew
Author-X-Name-Last: Haigh
Title: The Journal of Sustainable Finance & Investment
Journal: Journal of Sustainable Finance & Investment
Pages: 91-92
Issue: 2
Volume: 1
Year: 2011
Month: 4
X-DOI: 10.1080/20430795.2011.582330
File-URL: http://hdl.handle.net/10.1080/20430795.2011.582330
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:2:p:91-92
Template-Type: ReDIF-Article 1.0
Author-Name: Michel T. J. Rakotomavo
Author-X-Name-First: Michel T. J.
Author-X-Name-Last: Rakotomavo
Title: Preferences of retail investors and institutions for corporate social performance
Abstract:
I examine the preference of investors for corporate social performance
(CSP). The evidence suggests that retail stock investors tend to be
attracted to companies that have CSP strengths in community, employee
relations, corporate governance and human rights. As a group, institutions
tend to express their CSP preference through negative screening. Aggregate
institutional holdings are not positively associated with CSP strengths,
but are negatively associated with CSP weaknesses in diversity,
environment, human rights and product. The negative screens used by most
types of institutions focus on diversity and human rights. The holdings of
specific institutional types such as banks, investment companies and
pension funds are positively correlated with various CSP strengths, while
those of insurance companies and investment advisors are not.
Journal: Journal of Sustainable Finance & Investment
Pages: 93-102
Issue: 2
Volume: 1
Year: 2011
Month: 4
X-DOI: 10.1080/20430795.2011.582322
File-URL: http://hdl.handle.net/10.1080/20430795.2011.582322
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:2:p:93-102
Template-Type: ReDIF-Article 1.0
Author-Name: Ivo Mulder
Author-X-Name-First: Ivo
Author-X-Name-Last: Mulder
Author-Name: Thomas Koellner
Author-X-Name-First: Thomas
Author-X-Name-Last: Koellner
Title: Hardwiring green: how banks account for biodiversity risks and opportunities
Abstract:
This article aims at providing better insight into the way in which banks
currently deal with biodiversity in their business operations, what their
underlying motivations are for doing so, and how the banking sector
perceives biodiversity as a business risk or opportunity. Analysis of
publicly available information telephone interviews and a questionnaire
revealed that only five of the 50 banks have taken considerable steps to
account for biodiversity risks and opportunities on an organizational
level and within lending portfolios (scores higher than 67%). Most banks,
however, remain at the starting grid, with scores to address biodiversity
issues on a group or holding level and within lending products and
services lower than 33%. In terms of risks related to biodiversity, banks
believe that their sector is primarily exposed to reputational risk and,
perhaps surprisingly, to credit risk. Motivations for banks to develop
policies to account for biodiversity centre on reducing reputational risk
and the wish to act ecologically responsible, while being able to
differentiate from competitors is seen as a major business opportunity.
Journal: Journal of Sustainable Finance & Investment
Pages: 103-120
Issue: 2
Volume: 1
Year: 2011
Month: 4
X-DOI: 10.1080/20430795.2011.582323
File-URL: http://hdl.handle.net/10.1080/20430795.2011.582323
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:2:p:103-120
Template-Type: ReDIF-Article 1.0
Author-Name: Stéphanie Giamporcaro
Author-X-Name-First: Stéphanie
Author-X-Name-Last: Giamporcaro
Title: Sustainable and responsible investment in emerging markets: integrating environmental risks in the South African investment industry
Abstract:
This article analyses the views of South African investment organizations
about the likelihood of commodification of environmental risks in their
investment decision-making processes. It is based on an empirical
qualitative survey of 22 investment organizations, which are signatories
to the United Nation's Principles for Responsible Investment. We describe
a range of issues, identified by the investment professionals interviewed,
that are likely to prevent or accelerate the internalization of
environmental risks in the South African investment industry. The chance
that broader commodification will occur within the South African
investment industry seems to be linked to a realization of an adequate
political framing. This means legislating standardized environmental
disclosures by corporations and a long-term commitment by institutional
investors to sustainable and responsible investment philosophies. The
tension between social developmental goals and environmental goals is seen
as a major political obstacle at the national level.
Journal: Journal of Sustainable Finance & Investment
Pages: 121-137
Issue: 2
Volume: 1
Year: 2011
Month: 4
X-DOI: 10.1080/20430795.2011.582324
File-URL: http://hdl.handle.net/10.1080/20430795.2011.582324
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:2:p:121-137
Template-Type: ReDIF-Article 1.0
Author-Name: K. Branker
Author-X-Name-First: K.
Author-X-Name-Last: Branker
Author-Name: E. Shackles
Author-X-Name-First: E.
Author-X-Name-Last: Shackles
Author-Name: J. M. Pearce
Author-X-Name-First: J. M.
Author-X-Name-Last: Pearce
Title: Peer-to-peer financing mechanisms to accelerate renewable energy deployment
Abstract:
Despite the clear need to reduce greenhouse gas emissions, lack of access
to capital and appropriate financing mechanisms has limited the deployment
of renewable energy technologies (RETs). Feed-in tariff (FIT) programmes
have been used successfully in many countries to make RETs more
economically feasible. Unfortunately, the large capital costs of RETs can
result both in the slow uptake of FIT programmes and incomplete capture of
deployment potential. Subsidies are concentrated in financial institutions
rather than the greater population as traditional bank loans are required
to fund RET projects. This article critically analyses and considers the
political, financial and logistical risks of an innovative peer-to-peer
(P2P) financing mechanism. This mechanism has the goal of increasing RET
deployment capacity under an FIT programme in an effort to equitably
distribute both the environmental and economic advantages throughout the
entire population. Using the Ontario FIT programme as a case study, this
article illustrates how the guaranteed income stream from a solar
photovoltaic system can be modelled as an investment and how P2P lending
mechanisms can then be used to provide capital for the initial costs. The
requirements for and limitations of these types of funding mechanisms for
RETs are quantified and discussed and future work to deploy this
methodology is described.
Journal: Journal of Sustainable Finance & Investment
Pages: 138-155
Issue: 2
Volume: 1
Year: 2011
Month: 4
X-DOI: 10.1080/20430795.2011.582325
File-URL: http://hdl.handle.net/10.1080/20430795.2011.582325
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:2:p:138-155
Template-Type: ReDIF-Article 1.0
Author-Name: Eleanor Bloxham
Author-X-Name-First: Eleanor
Author-X-Name-Last: Bloxham
Title: The knowledge gap between investors and companies
Abstract:
Additional disclosure is the often sought remedy to facilitate
sustainable investing. To invest sustainably, however, investors need to
more carefully evaluate the disclosures they already receive.
Journal: Journal of Sustainable Finance & Investment
Pages: 156-158
Issue: 2
Volume: 1
Year: 2011
Month: 4
X-DOI: 10.1080/20430795.2011.582326
File-URL: http://hdl.handle.net/10.1080/20430795.2011.582326
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:2:p:156-158
Template-Type: ReDIF-Article 1.0
Author-Name: John Holland
Author-X-Name-First: John
Author-X-Name-Last: Holland
Title: A conceptual framework for changes in fund management and accountability relative to ESG issues
Abstract:
Major developments in socially responsible investment (SRI) and in
environmental, social and governance (ESG) issues for fund managers (FMs)
have occurred in the past decade. Much positive change has occurred but
problems of disclosure, transparency and accountability remain. This
article argues that trustees, FM investors and investee companies all
require shared knowledge to overcome, in part, these problems. This
involves clear concepts of accountability, and knowledge of fund
management and of the associated ‘chain of accountability’
to enhance visibility and transparency. Dealing with the problems also
requires development of an analytic framework based on relevant literature
and theory. These empirical and analytic constructs combine to form a
novel conceptual framework that is used to identify a clear set of areas
to change FM investment decision making in a coherent way relative to ESG
issues. The constructs and the change strategy are also used together to
analyse how one can create favourable conditions for enhanced
accountability. Ethical problems and climate change issues will be used as
the main examples of ESG issues. The article has policy implications for
the UK ‘Stewardship Code’ (2010), the legal responsibilities
of key players and for the ‘Carbon Disclosure Project’.
Journal: Journal of Sustainable Finance & Investment
Pages: 159-177
Issue: 2
Volume: 1
Year: 2011
Month: 4
X-DOI: 10.1080/20430795.2011.582328
File-URL: http://hdl.handle.net/10.1080/20430795.2011.582328
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:2:p:159-177
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Haigh
Author-X-Name-First: Matthew
Author-X-Name-Last: Haigh
Title: Dialectics in sustainability
Journal: Journal of Sustainable Finance & Investment
Pages: 179-179
Issue: 3-4
Volume: 1
Year: 2011
Month: 10
X-DOI: 10.1080/20430795.2012.656469
File-URL: http://hdl.handle.net/10.1080/20430795.2012.656469
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:3-4:p:179-179
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel A. Huppé
Author-X-Name-First: Gabriel A.
Author-X-Name-Last: Huppé
Author-Name: Priya Bala-Miller
Author-X-Name-First: Priya
Author-X-Name-Last: Bala-Miller
Title: Shareholder passivity: a viable explanation for corporate governance failures at NewsCorp?
Abstract:
Why would shareholders remain passive despite economic incentives to
address corporate governance failings at the company level? In crafting a
response to this question, our article addresses contemporary debates on
the monitoring role of investors in ensuring the companies they own
maximize shareholder value and adhere to high standards of corporate
governance. Although rich, the existing literature primarily addresses the
normative issue of whether shareholders should take on
oversight functions, rather than factors that may induce or inhibit
oversight. Responding to this gap in the literature, we examine
shareholder passivity through a qualitative case analysis of the behaviour
of NewsCorp investors. We argue that the corporate governance failures at
NewsCorp resulted not just from absent internal controls at the Board
level, but also from the failure of available external governance
mechanisms. Our findings show that agency-level, structural and cultural
barriers stymied the efforts of activist investors seeking corporate
governance reform at NewsCorp. We draw the insights of investors together
within a set of policy recommendations that could mitigate shareholder
passivity. In keeping with our exploratory focus, we propose promising
theoretical trajectories for advancing the related research programme
through approaches that better account for the interplay between
structure, agency and culture.
Journal: Journal of Sustainable Finance & Investment
Pages: 180-194
Issue: 3-4
Volume: 1
Year: 2011
Month: 10
X-DOI: 10.1080/20430795.2012.656474
File-URL: http://hdl.handle.net/10.1080/20430795.2012.656474
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:3-4:p:180-194
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Chow
Author-X-Name-First: Christine
Author-X-Name-Last: Chow
Title: Establishing a corporate sustainability monitoring tool using the shareholder engagement commitment indicator
Abstract:
This article explains the construction of a shareholder engagement
commitment (SEC) indicator that enables the comparison of shareholder
engagement activities for responsible investment from a company
perspective. The study of four elements in engagement that are tied to the
robustness of interaction between shareholders and companies enables this
comparison. The elements are (i) the frequency of
shareholders’ interest in the responsible behaviour of their
investments; (ii) the magnitude of support from other
shareholders on the issues raised; (iii) the efficiency
of company responses and (iv) the sustainability of
engagement solutions previously addressed. The SEC indicator is a stable
indicator that enables cross-country and cross-company comparisons, as
well as time-series comparison for the same company. It is potentially
useful for regulators, non-government organizations (NGOs), investors and
companies to monitor the corporate social responsibility progress of an
organization. In addition to descriptive assessment and case studies
techniques, shareholder engagement can now be studied using quantitative
methods that allow causal analysis.
Journal: Journal of Sustainable Finance & Investment
Pages: 195-208
Issue: 3-4
Volume: 1
Year: 2011
Month: 10
X-DOI: 10.1080/20430795.2012.656471
File-URL: http://hdl.handle.net/10.1080/20430795.2012.656471
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:3-4:p:195-208
Template-Type: ReDIF-Article 1.0
Author-Name: Kristina Praestbro Nielsen
Author-X-Name-First: Kristina Praestbro
Author-X-Name-Last: Nielsen
Author-Name: Rikke Winther Noergaard
Author-X-Name-First: Rikke Winther
Author-X-Name-Last: Noergaard
Title: CSR and mainstream investing: a new match? -- an analysis of the existing ESG integration methods in theory and practice and the way forward
Abstract:
Companies and investors perceive the value of corporate social
responsibility (CSR) differently; companies strive to obtain a competitive
advantage and long-term value by working strategically with CSR, whereas
investors see major barriers of integrating environmental, social and
governance (ESG) factors into financial valuation models. Investors'
current methods of applying ESG data in a financial valuation are
categorized as either a ‘single decision model’ where only
financial data are valued or a ‘dual decision model’ where
both financial data and ESG factors are considered sequentially. As some
socially responsible investment funds are able to outperform the market,
we argue that the two models identified are insufficient to capture the
additional value. On the basis of previous attempts to theoretically link
CSR and economic performance, we propose that a new ‘integrated
decision model’ should integrate financial data and ESG factors,
but should not be based on existing valuation methods. Moreover, it should
pursue a single objective, namely ‘value maximization’. A
case study on the Danish company Novozymes shows that, in practice, each
identified group of the interviewed investors value ESG data differently.
One sophisticated investor group implicitly integrates ESG factors into a
long-term focused valuation, where considerable value is attributed to ESG
factors.
Journal: Journal of Sustainable Finance & Investment
Pages: 209-221
Issue: 3-4
Volume: 1
Year: 2011
Month: 10
X-DOI: 10.1080/20430795.2012.655889
File-URL: http://hdl.handle.net/10.1080/20430795.2012.655889
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:3-4:p:209-221
Template-Type: ReDIF-Article 1.0
Author-Name: Yulia Levashova
Author-X-Name-First: Yulia
Author-X-Name-Last: Levashova
Title: Role of sustainable development in Bilateral Investment Treaties: recent trends and developments
Abstract:
In the last decade, international investment law has undergone an
explosive growth, which is characterized by the proliferation of Bilateral
Investment Treaties (BITs) and a growing number of investment-treaty
arbitrations. The effect of BITs on developing countries (host states) can
be far-reaching. There are cases when host states attempt to pursue the
objectives of sustainable development have interfered with investments of
foreign investors, and subsequently have violated BITs. Increasingly, the
claim is made that broader societal interests, such as sustainable
development, should be incorporated into BITs. In this article, important
trends on the role of sustainable development in international investment
law are analysed. Examples of states that attempt to incorporate
sustainable development in their BITs are compared with states that oppose
such reforms. This comparison shows that there is a lack of consistency
and consensus on the future of the role of sustainable development in
international investment law.
Journal: Journal of Sustainable Finance & Investment
Pages: 222-229
Issue: 3-4
Volume: 1
Year: 2011
Month: 10
X-DOI: 10.1080/20430795.2012.655890
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Template-Type: ReDIF-Article 1.0
Author-Name: Erhard Theophil Wonneberger
Author-X-Name-First: Erhard Theophil
Author-X-Name-Last: Wonneberger
Author-Name: Harald A. Mieg
Author-X-Name-First: Harald A.
Author-X-Name-Last: Mieg
Title: Trust in money: hard, soft and idealistic factors in Euro, gold and German community currencies
Abstract:
In this article, we want to prepare the grounds for a psychology of trust
in money, trust being key to sustainable money systems. On the basis of an
analysis of functional money characteristics, we constructed 12 scales for
trust-related money aspects: liquidity, fungibility, stability, backing,
credibility of the issuers, system security, image, manageability and
idealistic aspects. In an online study (N = 394)
comprising a sub-sample of 97 users of community currencies in Germany, we
tested the scales for three currencies: Euro, gold and community
currencies. We could confirm the hypothesis of a divide between a hard,
economic factor and a soft factor of trust in money. In addition, we found
a third, idealistic factor in community currencies. The three currencies
significantly differed with regard to the 12 trust-related functional
aspects and specific uses: Euro is preferred for purchase and investing
and gold for storage and community currencies for donations. The
discussion centres on the concept of trust applied to money.
Journal: Journal of Sustainable Finance & Investment
Pages: 230-240
Issue: 3-4
Volume: 1
Year: 2011
Month: 10
X-DOI: 10.1080/20430795.2012.655891
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Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo F. Crespo
Author-X-Name-First: Ricardo F.
Author-X-Name-Last: Crespo
Author-Name: Irene van Staveren
Author-X-Name-First: Irene
Author-X-Name-Last: van Staveren
Title: Would we have had this crisis if women had been running the financial sector?
Abstract:
The two main ethical approaches, utilitarianism and deontology, have not
been able to prevent some of the behaviours underlying the financial
crisis. A third ethics, the ethics of care, might have been more effective
than the other two in preventing the last financial crisis. The ethics of
care is a feminist ethical theory concerned with relationships. It can be
applied to a wide variety of relationships and has been tested in
experimental settings, suggesting that women tend to behave more in ways
that can be understood in terms of relationships, whereas men tend to
behave more in terms of rules. Using these ethical theories, we analyse
the crisis pointing at what are its causal behavioural attitudes and
institutions.
Journal: Journal of Sustainable Finance & Investment
Pages: 241-250
Issue: 3-4
Volume: 1
Year: 2011
Month: 10
X-DOI: 10.1080/20430795.2012.655892
File-URL: http://hdl.handle.net/10.1080/20430795.2012.655892
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Handle: RePEc:taf:jsustf:v:1:y:2011:i:3-4:p:241-250
Template-Type: ReDIF-Article 1.0
Author-Name: Carole Biau
Author-X-Name-First: Carole
Author-X-Name-Last: Biau
Title: The ‘Governance Gap’, or missing links in transnational chains of accountability for extractive industry investment
Abstract:
This article seeks to address the urgent need for emerging-market
economies to more firmly tackle the corporate social responsibility (CSR)
of their overseas enterprises in Africa. Focusing on Africa's mining
sector, it analyses complementarities among: international guidelines for
multinational enterprises (Section 2); domestic management norms from
countries of origin (Section 3); and African countries’ legal
frameworks for CSR (Section 4). Three emerging-market countries are
investigated (China, India and South Africa), while Canada -- a
‘traditional’ investor long engaged in mining in Africa --
is used as a ‘benchmark’ for assessing whether the CSR
characteristics of emerging-market companies differ from those of more
‘experienced’ investors. The article has two aims. First, to
build toward a framework that could help emerging-market investors engage
in mutual learning and systemize their CSR approaches in accordance with
African host government requirements. And secondly, to shed light on the
chains of accountability stretching from governing bodies in countries of
origin, to company operations in Africa. This analysis reveals a clear
‘governance gap’ between CSR constraints imposed on
companies operating within their countries of origin, and the more lenient
standards to which companies investing overseas are held. Section 5 and
the Conclusion investigate mechanisms for bridging this
‘gap’.
Journal: Journal of Sustainable Finance & Investment
Pages: 251-260
Issue: 3-4
Volume: 1
Year: 2011
Month: 10
X-DOI: 10.1080/20430795.2012.655893
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Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Haigh
Author-X-Name-First: Matthew
Author-X-Name-Last: Haigh
Title: Connecting sustainability goals to financing activity
Journal: Journal of Sustainable Finance & Investment
Pages: 85-87
Issue: 2
Volume: 2
Year: 2012
Month: 4
X-DOI: 10.1080/20430795.2012.711973
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:2:p:85-87
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Haigh
Author-X-Name-First: Matthew
Author-X-Name-Last: Haigh
Title: Publishing and defining sustainable finance and investment
Abstract:
Provides an overview of the aims and scopes of journals and magazines
publishing the outcomes of responsible investment research. Discusses
interconnected terms such as responsibility, sustainability, ecology,
financing and investing.
Journal: Journal of Sustainable Finance & Investment
Pages: 88-94
Issue: 2
Volume: 2
Year: 2012
Month: 4
X-DOI: 10.1080/20430795.2012.688797
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Template-Type: ReDIF-Article 1.0
Author-Name: Janvier D. Nkurunziza
Author-X-Name-First: Janvier D.
Author-X-Name-Last: Nkurunziza
Title: Responsible lending: credit may precipitate firm failure in volatile macroeconomic environments
Abstract:
This article models firm survival in Kenyan manufacturing with a
particular emphasis on the effect of credit on firm resilience. The
article explores how firms coped with the challenging economic environment
that prevailed in the 1990s particularly the effect of the dramatic
increase in interest rates. The key finding is that the burden of loans
precipitated firm failure in the 1990s but overdrafts did not seem to have
had a significant impact on firm failure. Furthermore, older firms appear
to have resisted better than younger ones, but there is no evidence that
large firms had higher survival rates. These results are robust to
different specifications, namely probit models, Cox proportional hazard
models and exponential, Gompertz and Weibull parametric hazard models. The
main contribution of the article is to highlight the role of responsible
lending as credit may lead some categories of firms to failure in
shock-prone developing economies. The study also shows that the key
factors explaining firm survival in developed economies, namely size and
age, are not necessarily the most relevant determinants of firm survival
in developing economies. Methodologically, this article is one of the few
that have applied hazard analysis to firms in developing economies.
Journal: Journal of Sustainable Finance & Investment
Pages: 95-118
Issue: 2
Volume: 2
Year: 2012
Month: 4
X-DOI: 10.1080/20430795.2012.688796
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Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Haigh
Author-X-Name-First: Matthew
Author-X-Name-Last: Haigh
Title: Fiduciary finance ≠ stakeholder management: a reply to Cadman's governance theory
Abstract:
This article deals with the question of the integration of climate-change
concern in the investment industry. The article is motivated by the
prevailing institutional approach to understanding organizational
governance set out in Tim Cadman (2011) [Evaluating the governance of
responsible investment institutions: an environmental and social
perspective. Journal of Sustainable Finance & Investment
1, no. 1: 20--9]. A case is used to illustrate problems with the framework
that has been put forward. The analytical approach draws on critical
discourse and visual semiotics methods, and interview research. Attention
is directed to the ways in which text and illustration, in combination,
are read. Used for this purpose is material bearing on the involvement or
otherwise of the funds management sector in the United Nations Framework
Convention on Climate Change policy regime. The examined material, it is
argued, reinforces imagined levels of prosperity through business
activity, while assuming away any need to downscale that activity.
Maintenance of the policy regime is not the central issue here: what
is at stake is human communities and ecological systems.
The governance framework put forward by Cadman can be considered in that
light.
Journal: Journal of Sustainable Finance & Investment
Pages: 119-135
Issue: 2
Volume: 2
Year: 2012
Month: 6
X-DOI: 10.1080/20430795.2012.703125
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:2:p:119-135
Template-Type: ReDIF-Article 1.0
Author-Name: William Nikolakis
Author-X-Name-First: William
Author-X-Name-Last: Nikolakis
Author-Name: David H. Cohen
Author-X-Name-First: David H.
Author-X-Name-Last: Cohen
Author-Name: Harry W. Nelson
Author-X-Name-First: Harry W.
Author-X-Name-Last: Nelson
Title: What matters for socially responsible investment (SRI) in the natural resources sectors? SRI mutual funds and forestry in North America
Abstract:
Socially responsible investment mutual funds have played an active role
in encouraging sustainability in the natural resources sectors,
particularly in North America's forest industry which tends to be reactive
in adopting sustainable practices. A survey of socially responsible
investment mutual funds in Canada and the US was first undertaken in 2006
and then replicated in 2010--11 to understand the implications of this
growing investment practice on the natural resources sector, with a focus
on forestry. While we did not expect to find a convergence in
environmental, social or governance criteria among funds, this study found
that environmental criteria are most important to respondents in
evaluating natural resource stocks, and that this is stable over time and
consistent according to fund size. Governance criteria became prominent in
2010--11, perhaps a result of the Global Financial Crisis. These results
build on literature examining the investment evaluation process for
socially responsible mutual funds. What the findings highlight is that
evaluation criteria are dynamic, responding to changing attitudes and
firms should consider this in developing their sustainability agenda. Some
socially responsible mutual funds have played a unique role in the forest
sector, working collectively with Non-Government Organisations and civil
actors to influence forest companies to improve sustainability, and have
divested shares in forest companies that do not comply with their demands.
Our results improve understanding for what is important to socially
responsible mutual funds in evaluating the forest sector. The study shows
a decline in importance for forest certification over the period and that
the Forest Stewardship Council scheme is viewed as most credible by
respondents. However, poor financial returns in the forest sector may
constrain further attention from socially responsible mutual funds.
Journal: Journal of Sustainable Finance & Investment
Pages: 136-151
Issue: 2
Volume: 2
Year: 2012
Month: 5
X-DOI: 10.1080/20430795.2012.690724
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Template-Type: ReDIF-Article 1.0
Author-Name: Wim Vandekerckhove
Author-X-Name-First: Wim
Author-X-Name-Last: Vandekerckhove
Author-Name: Jos Leys
Author-X-Name-First: Jos
Author-X-Name-Last: Leys
Title: Dear Sir, we are not an NGO
Abstract:
With the financial crisis, socially responsible investment (SRI) has
gained attention. SRI designates a variety of rationales and techniques
for including non-financial criteria into investment decisions. One
technique of SRI consists of investors engaging with investee corporations
on issues of concern. The aim is twofold. First, the investor hopes to get
more information on corporate policies and practices with regard to
allegations of improper behaviour, made by third parties (NGOs, unions,
press). Second, the investor tries to influence these practices by
signalling investor concern to top management over certain issues.
However, the engagement process itself remains opaque, especially in
Europe where shareholder activism (SRI activists voting at AGM) is
relatively unknown, and where ‘soft engagement’
(behind-closed-doors-dialogue) is more popular. This article takes an
organizational rhetoric approach to provide insights into the complexities
and ambiguities that are at play in the interaction between
representatives of SRI investors and corporations. We use data from an
investor engagement process (letters to and from management and boards of
investee corporations) on three cases of corporate activities in Myanmar.
Our findings are that the investor initiative has a hard time getting
investees to answer a number of straightforward questions about the
investee's risk exposure and risk management with regard to being involved
in breaches of International Labour Organization core conventions. From
our organizational rhetoric analysis we offer plausible explanations for
this both on investor side (ambiguity of intent, lack of credibility on
investor side) and on corporate side (ambiguity of audience to respond to,
lack of engagement experience, the assumption that moral arguments are
expected rather than proper risk management).
Journal: Journal of Sustainable Finance & Investment
Pages: 152-161
Issue: 2
Volume: 2
Year: 2012
Month: 2
X-DOI: 10.1080/20430795.2012.688795
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:2:p:152-161
Template-Type: ReDIF-Article 1.0
Author-Name: Heather Hachigian
Author-X-Name-First: Heather
Author-X-Name-Last: Hachigian
Author-Name: Sarah M. McGill
Author-X-Name-First: Sarah M.
Author-X-Name-Last: McGill
Title: Introduction
Journal: Journal of Sustainable Finance & Investment
Pages: 163-165
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.742631
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:3-4:p:163-165
Template-Type: ReDIF-Article 1.0
Author-Name: Heather Hachigian
Author-X-Name-First: Heather
Author-X-Name-Last: Hachigian
Author-Name: Sarah M. McGill
Author-X-Name-First: Sarah M.
Author-X-Name-Last: McGill
Title: Reframing the governance challenge for sustainable investment
Abstract:
In an era of borderless financial markets the financial sector can serve
as an important mechanism for addressing long-term environmental, economic
and social degradation. In particular, institutional investors tasked with
long-term asset--liability management are integrating environmental,
social and governance considerations into their decision-making and
ownership practices to navigate future investment opportunities and
threats. Despite the increase in sustainable investment initiatives, the
transition to a more sustainable economy remains an aspiration. We argue
this is because sustainable investment has been conceived and executed
largely through existing governance frameworks, which are incongruent with
the ‘sustainability’ problems facing institutional
investors. To illustrate this point, we draw a distinction between
traditional and sustainability problems, arguing that the latter are
characterized by residuals (as opposed to externalities), such as conflict
and behavioural biases, and that these residuals are irreducible. This
distinction provides critical insight into why institutional investors
must invest in their own governance to meet the challenges and
opportunities that sustainability problems raise. While far from a
comprehensive research agenda, the article draws on shared insights from
the graduate student papers in this special issue to explore questions of
innovation in governance required to confront sustainability issues.
Journal: Journal of Sustainable Finance & Investment
Pages: 166-178
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.742632
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Template-Type: ReDIF-Article 1.0
Author-Name: Yukie Saito
Author-X-Name-First: Yukie
Author-X-Name-Last: Saito
Title: Corporate governance and active engagement in Japan: transformation in the face of incremental shareholder value?
Abstract:
In this article is examined the consequences of an increasing emphasis on
shareholder value as a result of corporate ownership structural change for
shareholder activism and corporate governance reforms. By focussing on
active engagement through shareholder proposals in Japan, it is shown that
limited actors and their motivations lead to narrow agenda setting.
Further, by analysing the determinants of corporate governance structure,
it is also shown that larger firms tend to undertake a greater degree of
institutional change in corporate governance, depending upon their
ownership structure. Finally, this study shows that mitigating agency
problems through board structural reform is not the major source of active
engagement through the submission of shareholder proposals in Japan, where
shareholder activism has not yet developed to realise shareholder value.
Journal: Journal of Sustainable Finance & Investment
Pages: 179-197
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.742633
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Template-Type: ReDIF-Article 1.0
Author-Name: Dane P. Rook
Author-X-Name-First: Dane P.
Author-X-Name-Last: Rook
Title: How can we know if investors are coherently linking sustainability concepts?
Abstract:
The influences of sustainability factors on long-term financial market
dynamics are complex. Investors’ abilities to coherently link
sustainability concepts from across diverse domains may dictate success in
navigating long-term complexities. A coherent understanding can avoid
unintended consequences and mitigate governance conflicts for
institutional investors. Analysis of whether investors are coherently
linking sustainability concepts presents an underexplored empirical
challenge for both psychology and finance. This article presents a
methodology for measuring how coherently investors link sustainability
concepts. The approach uses the concept of investment beliefs and
straightforward mathematical techniques on a unique small-sample dataset
of the self-reported investment beliefs of senior asset managers on
sustainable investments and long-termism. Three findings emerge. First,
investors are able to successfully link small numbers of sustainability
concepts in a coherent way, but have difficulty doing so for larger
numbers of concepts. Second, expert investors seem to be making global
linkages among sustainable investment concepts from different domains
(global linkages) and thus may be cultivating broad worldviews on
sustainability. Third, some sustainability concepts link together more
coherently for investors than others. This article advocates further
research into the coherence of sustainable investment understanding, as
well as a scrutiny by investors of their own investment belief systems.
Journal: Journal of Sustainable Finance & Investment
Pages: 198-221
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.742634
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:3-4:p:198-221
Template-Type: ReDIF-Article 1.0
Author-Name: Sarah M. McGill
Author-X-Name-First: Sarah M.
Author-X-Name-Last: McGill
Title: ‘Peak’ phosphorus? The implications of phosphate scarcity for sustainable investors
Abstract:
Inorganic phosphate-based fertilisers have done much to alleviate the
grave problem of global hunger, yet these gains have also come at the
expense of a critical dependence on a finite mineral resource. According
to various projections, current economic global reserves of phosphate
rock, approximately 90% of which is used to manufacture chemical
fertilisers, are diminishing and will be depleted within as few as 40--150
years -- a phenomenon commonly known as peak phosphorus.
This article argues that much like the idea of peak oil before it, the
peak phosphorus claim tends not to distinguish between long-term concerns
about one day ‘running out’ of phosphate rock and the more
immediate, multi-dimensional socio-economic causes and effects of poor
resource management. The article shows the importance of a more nuanced
understanding of the problem of resource scarcity to the sustainable
investing agenda. In particular, the concentration of the majority of
remaining global phosphate reserves in a handful of geopolitically
sensitive countries and state-capitalist corporations presents a number of
unexplored challenges to investors.
Journal: Journal of Sustainable Finance & Investment
Pages: 222-239
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.742635
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Template-Type: ReDIF-Article 1.0
Author-Name: Caitlin A. McElroy
Author-X-Name-First: Caitlin A.
Author-X-Name-Last: McElroy
Title: Corporate foundations in the mining industry: the relationship between responsible investment and social investment
Abstract:
This article explores the relationship between responsible investment
(RI) initiatives in capital markets and lending institutions, and the
performance of social investment as a specific form of corporate social
responsibility (CSR) in the mining industry. It focuses on how the nature
of institutional investment initiatives encourages certain organizational
structures for CSR activities. The argument is developed by exploring an
inherent conflict between the business case motivations for CSR as
promoted by RI initiatives, and the legitimacy of CSR activities being
based on their performance-fulfilling normative CSR values. Corporate
foundations in the mining industry provide the empirical context for
examination. These organizations distribute the benefits of mining
operations through social investment. They are -- interestingly -- both
connected to their sponsoring mining firms and yet self-governed. The
organizational form of corporate foundations works as a strategic response
to RI initiatives because the form allows social investment practices at a
distance from the corporation to maintain its normative legitimacy and
thus create the CSR desired by investors. Framed by an institutional
economic geography lens, this organizational dynamic indicates that the
inherent conflict in RI initiatives produces greater attention to the form
of delivery of CSR than to its functions.
Journal: Journal of Sustainable Finance & Investment
Pages: 240-256
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.742636
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Template-Type: ReDIF-Article 1.0
Author-Name: J. Ryan Hogarth
Author-X-Name-First: J.
Author-X-Name-Last: Ryan Hogarth
Title: The role of climate finance in innovation systems
Abstract:
This paper addresses questions over the function and institutional
arrangements of climate finance from an innovation systems perspective. It
examines the barriers that prevent developing countries from transitioning
to low-carbon and climate-resilient economies, and the interventions
necessary to overcome those barriers. It finds that the barriers to
innovation and economic change are much more pervasive than a lack of
incentives. They include issues like insufficient knowledge flows and
technical capacity in research and development and business; inadequate
network formation around value chains; capital constraints due to
undeveloped capital markets; and unstable and inappropriate policy
regimes. To overcome these barriers, climate finance will need to be
deployed through technology-push policies, strategic niche management and
demand-pull policies. It will also need to incentivise and enable
developing country governments to implement the ‘sustainable
innovation policy regimes’ necessary to guide transitions to
low-carbon and climate-resilient economies. Concerning the institutional
arrangements of climate finance, this paper argues that climate finance
should flow through national funding entities, and that the United Nations
Framework Convention on Climate Change should adopt crediting mechanisms
for Nationally Appropriate Mitigation Actions or Sectoral No-Lose Targets.
Journal: Journal of Sustainable Finance & Investment
Pages: 257-274
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.742637
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:3-4:p:257-274
Template-Type: ReDIF-Article 1.0
Author-Name: Adam D. Dixon
Author-X-Name-First: Adam D.
Author-X-Name-Last: Dixon
Author-Name: Ashby H.B. Monk
Author-X-Name-First: Ashby H.B.
Author-X-Name-Last: Monk
Title: Reconciling transparency and long-term investing within sovereign funds
Abstract:
One of the potential consequences of the international community's focus
on transparency and commercial orientation, when it comes to sovereign
wealth funds, has been to shorten the latter's investment time horizons.
As a result, these theoretically long-term investors are pressured into
behaving like many short-term investors in the marketplace today, pushed
by structural conditions that demand short-term performance in order to
secure legitimacy. In evaluating the tension between transparency and
long-term investing, we offer a conceptual framework for thinking through
different types of transparency pertaining to the investment process as a
means of discussing and communicating acceptable and non-acceptable
asymmetric information in relation to financial performance.
Journal: Journal of Sustainable Finance & Investment
Pages: 275-286
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.703126
File-URL: http://hdl.handle.net/10.1080/20430795.2012.703126
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:3-4:p:275-286
Template-Type: ReDIF-Article 1.0
Author-Name: Hoasiuhu Francis
Author-X-Name-First: Hoasiuhu
Author-X-Name-Last: Francis
Title: Developing a self-sustaining protected area system: a feasibility study of national tourism fee and green infrastructure in the Solomon Islands
Abstract:
This research explores how the notion of efficiency could help translate
environmental policies into practices to achieve policies targets. The
Institutional Analysis Development framework provides the evaluative tool
and method. It follows with articulating policy directives alongside the
Sustainable Finance of protected area system management perspective. As
such, the research offers an interdisciplinary perspective on conservation
management particularly in developing island countries where conservation
is dominantly financed from international aid and characterized by a
shorter time frame. This research serves as a feasibility study for the
development of sustainable finance for environmental protection in the
Solomon Islands. Data were collected from interviews, minutes, official
documents and face-to-face communication during 2010--2012. Reflecting on
the case study, more than 50% of the Solomon Islands’ environmental
laws are redundant; as such, ensuring the cohesive flow of rules between
laws, policies and management plan is viewed here as a first step towards
effectiveness. It follows with the argument that environmental laws
require to be distinguished from criminal laws and as such enforcement
should be viewed within the perspective of providing provisions for
innovative financing, self-reliance and ownership. Following these
arguments the paper recommends that aid agencies should redirect their
policies towards resource mobilization and creating internal financing to
support conservation. These initiatives should also include provisions for
integrating urban green management in natural resources management. A
Solomon Island Environmental Trust Fund is proposed here, where national
tourism fees and green infrastructure are proposed as two potential
revenues.
Journal: Journal of Sustainable Finance & Investment
Pages: 287-302
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.715576
File-URL: http://hdl.handle.net/10.1080/20430795.2012.715576
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:3-4:p:287-302
Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Bianchi
Author-X-Name-First: Robert J.
Author-X-Name-Last: Bianchi
Author-Name: Michael E. Drew
Author-X-Name-First: Michael E.
Author-X-Name-Last: Drew
Title: Sustainable stock indices and long-term portfolio decisions
Abstract:
What is the long-term behaviour of sustainable stock index returns and
the accretive benefits to portfolio diversification? We consider these
issues through the prism of a long-term investor by replicating the risk
and reward behaviour of sustainable stock indices from 1927 through 2010.
We find that these indices exhibit long-term mean, variance and tail-risk
characteristics that are commensurate with conventional U.S. stocks. We
also reveal that recent performance appears worse than their performance
over the long term. On the question of portfolio diversification, we find
that only one of the three sustainable stock indices investigated
dominates the efficient frontier. Our findings suggest that the stock
screening process of these indices has important implications regarding
the desirability of these investments for long-term investors.
Journal: Journal of Sustainable Finance & Investment
Pages: 303-317
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.715577
File-URL: http://hdl.handle.net/10.1080/20430795.2012.715577
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:3-4:p:303-317
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Vives
Author-X-Name-First: Antonio
Author-X-Name-Last: Vives
Author-Name: Baljit Wadhwa
Author-X-Name-First: Baljit
Author-X-Name-Last: Wadhwa
Title: Sustainability indices in emerging markets: impact on responsible practices and financial market development
Abstract:
Sustainability indices are generally created to serve as a benchmark for
sustainable investment. In all markets, but particularly in emerging
markets, these indices can also contribute to stimulate responsible
practices in companies that want to be part of the index and those that
are already members. Furthermore, they can contribute to the deepening of
the capital markets, not only by serving as a benchmark, but also by
developing interest in responsible investment on the part of foreign and
domestic institutional investors. To play these roles, the admission,
selection and removal process of companies into sustainability indices
must have particular characteristics. For example, there should be a
relatively large stock of eligible companies. Furthermore, the investment
environment in the capital markets must also be relatively developed for
investors to appreciate the long-term value of responsible companies and
analysts must have the right incentives to promote responsible
investments. Under certain conditions, the indices can also help to
attract foreign capital, seeking international diversification, to the
local capital markets. Even though there are more than 50 general and
specialized sustainability indices, there are only seven associated with
stock exchanges in developing countries: South Africa, Brazil, Egypt,
Indonesia, China, India, Turkey and Mexico. This study analyses the
conditions that make for effective sustainability indices in promoting
capital market development and responsible practices and the impacts that
corporations and investors can expect. This study includes, as an example,
evidence from an evaluation of the impact of the BM&FBovespa
Sustainability Index in Brazil. We also include recommendations for the
design of sustainability indices in emerging markets.
Journal: Journal of Sustainable Finance & Investment
Pages: 318-337
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.715578
File-URL: http://hdl.handle.net/10.1080/20430795.2012.715578
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:3-4:p:318-337
Template-Type: ReDIF-Article 1.0
Author-Name: Marien de Haan
Author-X-Name-First: Marien
Author-X-Name-Last: de Haan
Author-Name: Lammertjan Dam
Author-X-Name-First: Lammertjan
Author-X-Name-Last: Dam
Author-Name: Bert Scholtens
Author-X-Name-First: Bert
Author-X-Name-Last: Scholtens
Title: The drivers of the relationship between corporate environmental performance and stock market returns
Abstract:
Is there a relationship between corporate environmental performance (CEP)
and stock returns? And if so, what drives this relationship: changes in
corporate risk exposure or mispricing because of investors' taste for high
CEP stocks, based on personal values or social norms? To answer these
questions, we use a new and comprehensive ranking that measures the
environmental performance of the 500 largest publicly traded US
corporations. Our methodology is based on the Fama--French--Carhart
four-factor asset-pricing model. In addition, we incorporate a fifth
factor to capture common CEP-related risks. The results point to a
negative relationship between CEP and stock returns, partially driven by
common CEP-related risks. At the same time though, the influence of taste
cannot be ruled out.
Journal: Journal of Sustainable Finance & Investment
Pages: 338-375
Issue: 3-4
Volume: 2
Year: 2012
Month: 10
X-DOI: 10.1080/20430795.2012.738601
File-URL: http://hdl.handle.net/10.1080/20430795.2012.738601
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:3-4:p:338-375
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin J. Richardson
Author-X-Name-First: Benjamin J.
Author-X-Name-Last: Richardson
Title: Fiduciary responsibility in retail funds: clarifying the prospects for SRI
Abstract:
This article assesses the fiduciary law context governing socially
responsible investing (SRI) in retail funds in order to understand the
scope for promoting sustainable development. Most scholarship on this
subject has focused on institutional investors such as pension plans, yet
the legal, institutional and market context of retail funds has some
distinct characteristics. The article argues that although the retail
sector offers the most generous legal space for SRI of any financial
sector, SRI practice is far from mainstream owing to a range of
organizational and economic impediments coupled with the drawbacks of a
relatively permissive legal milieu. This article highlights that the
obsessive focus on the supposed fiduciary law barrier to SRI can overlook
other institutional obstacles to its practice, as well as to stress that
it is insufficient merely to have a legally enabling framework if we wish
SRI to make a more fundamental contribution to sustainability.
Furthermore, any analysis of the fiduciary responsibility of retail funds
is incomplete without taking into account the impact of other legal
standards and duties in this sector such as from contract law and
financial regulation.
Journal: Journal of Sustainable Finance & Investment
Pages: 1-16
Issue: 1
Volume: 3
Year: 2013
Month: 1
X-DOI: 10.1080/20430795.2012.751349
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Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Beyhaghi
Author-X-Name-First: Mehdi
Author-X-Name-Last: Beyhaghi
Author-Name: James P. Hawley
Author-X-Name-First: James P.
Author-X-Name-Last: Hawley
Title: Modern portfolio theory and risk management: assumptions and unintended consequences
Abstract:
This article presents an overview of the assumptions and unintended
consequences of the widespread adoption of modern portfolio theory (MPT)
in the context of the growth of large institutional investors. We examine
the many so-called risk management practices and financial products that
have been built on MPT since its inception in the 1950s. We argue that the
very success due to its initial insights had the unintended consequence,
given its widespread adoption, of contributing to the undermining the
foundation of the financial system in a variety of ways. This study has
relevance for both the ongoing analyses of the recent financial crisis, as
well as for various existing and proposed financial reforms.
Journal: Journal of Sustainable Finance & Investment
Pages: 17-37
Issue: 1
Volume: 3
Year: 2013
Month: 1
X-DOI: 10.1080/20430795.2012.738600
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Template-Type: ReDIF-Article 1.0
Author-Name: Scott J. Niblock
Author-X-Name-First: Scott J.
Author-X-Name-Last: Niblock
Author-Name: Jennifer L. Harrison
Author-X-Name-First: Jennifer L.
Author-X-Name-Last: Harrison
Title: Carbon markets in times of VUCA: a weak-form efficiency investigation of the phase II EU ETS
Abstract:
We examine the weak-form efficiency status of the European carbon market
over periods of sustained volatility, uncertainty, complexity and
ambiguity. We use 1,035 daily spot price data observations from the Phase
II European Union Emissions Trading Scheme from 2008 to 2012, along with
random walk and trading rule profitability tests. To establish the
evolution of weak-form efficiency, the time period under investigation is
further divided into two distinct crisis periods, i.e. global financial
crisis (GFC) period and European sovereign debt crisis (ESDC) period.
Period 1 random walk test findings provide limited
support for price return predictability in the European carbon market
during the GFC. Period 2 results show that price return
predictabilities became non-existent during the ESDC. Trading rule
profitability findings reveal that after applying simple trading rules
(that account for risk and transaction costs), price return
predictabilities cannot be manipulated to profit above a naive
buy-and-hold strategy in the European carbon market. Despite ongoing
market volatility, economic uncertainty and complexity, and global climate
change policy ambiguity, it appears that the EU ETS is becoming more
weak-form efficient.
Journal: Journal of Sustainable Finance & Investment
Pages: 38-56
Issue: 1
Volume: 3
Year: 2013
Month: 1
X-DOI: 10.1080/20430795.2013.765381
File-URL: http://hdl.handle.net/10.1080/20430795.2013.765381
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Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Olatunbosun Benjamin
Author-X-Name-First: Emmanuel Olatunbosun
Author-X-Name-Last: Benjamin
Title: Credit risk modelling and sustainable agriculture: asset evaluation and rural carbon revenue
Abstract:
Two important reasons for the limited access to formal credit experienced
by rural small farmers in developing countries are information asymmetry
and lack of collateral. For formal lenders, these conditions present a
challenge to prudent risk management. Sustainable agriculture in
sub-Saharan Africa may abate these challenges. This article extends
Katchova and Barry's (2005) risk model to include environmental services
cash flow in the asset evaluation of farms in Southern Africa. In the
presence of falling land prices, future distance-to-default of
carbon-certified smallholders would improve considerably with a default
probability of approximately 40% as compared with that without
certification.
Journal: Journal of Sustainable Finance & Investment
Pages: 57-69
Issue: 1
Volume: 3
Year: 2013
Month: 1
X-DOI: 10.1080/20430795.2013.765382
File-URL: http://hdl.handle.net/10.1080/20430795.2013.765382
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Template-Type: ReDIF-Article 1.0
Author-Name: Tessa Hebb
Author-X-Name-First: Tessa
Author-X-Name-Last: Hebb
Title: Impact investing and responsible investing: what does it mean?
Journal: Journal of Sustainable Finance & Investment
Pages: 71-74
Issue: 2
Volume: 3
Year: 2013
Month: 4
X-DOI: 10.1080/20430795.2013.776255
File-URL: http://hdl.handle.net/10.1080/20430795.2013.776255
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Template-Type: ReDIF-Article 1.0
Author-Name: David Wood
Author-X-Name-First: David
Author-X-Name-Last: Wood
Author-Name: Ben Thornley
Author-X-Name-First: Ben
Author-X-Name-Last: Thornley
Author-Name: Katie Grace
Author-X-Name-First: Katie
Author-X-Name-Last: Grace
Title: Institutional impact investing: practice and policy
Abstract:
This article examines how public policy can and does play a
role in enabling impact investing by U.S. institutional asset owners. We
outline how government often plays a key role as underwriter, co-investor,
regulator, procurer of goods and services, or provider of subsidies and
technical assistance, thus enabling intentional investment for social and
environmental benefits by asset owners. The article focuses on how policy
intersects with the specific legal requirements and a distinct investment
culture that often constrain the ability of institutions to invest with
impact. These barriers must be taken into account for the institutional
role in impact investing to grow beyond the current limited activity.
Careful coordination between policymakers and institutional investors will
be essential in building private investment markets that deliver positive
social impact. We concentrate on more narrowly construed impact investment
policies. Examples include geographically targeted economic development,
and energy-efficient real estate investments.
Journal: Journal of Sustainable Finance & Investment
Pages: 75-94
Issue: 2
Volume: 3
Year: 2013
Month: 4
X-DOI: 10.1080/20430795.2013.776256
File-URL: http://hdl.handle.net/10.1080/20430795.2013.776256
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Template-Type: ReDIF-Article 1.0
Author-Name: Edward T. Jackson
Author-X-Name-First: Edward T.
Author-X-Name-Last: Jackson
Title: Interrogating the theory of change: evaluating impact investing where it matters most
Abstract:
How is impact investing evaluated? How can and should it be
evaluated? Over the past 5 years, there has been solid progress in
developing social impact metrics at the industry-wide, firm and investment
levels and the industry is becoming increasingly data-rich. Nevertheless,
evaluation practices still tend to focus on counting inputs and outputs,
and telling stories. Moreover, an important element is too often
underdeveloped, invisible, not explicit or missing altogether. That
element is theory of change, an approach and tool drawn from the field of
program evaluation. This article reviews cases where theory of change has,
in fact, been used to good effect at various levels of the impact
investing industry. It also discusses a range of qualitative and
quantitative methods which could be usefully blended with the theory of
change approach, and affirms the equally important imperatives of
accountability and learning across all combinations of methods. The
article concludes that a more comprehensive application of theory of
change to all levels of the field is required - and especially to the
micro-level of individuals, households and communities, where the results
of impact investments matter most. Such an approach can help build an
impact investing industry that is adaptive, transparent and
self-sustaining. To this end, creating an ongoing dialogue between the
development evaluation field and the impact investing industry, and
designing and launching new education and training initiatives, are key
tasks in the years ahead.
Journal: Journal of Sustainable Finance & Investment
Pages: 95-110
Issue: 2
Volume: 3
Year: 2013
Month: 4
X-DOI: 10.1080/20430795.2013.776257
File-URL: http://hdl.handle.net/10.1080/20430795.2013.776257
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:2:p:95-110
Template-Type: ReDIF-Article 1.0
Author-Name: Marguerite Mendell
Author-X-Name-First: Marguerite
Author-X-Name-Last: Mendell
Author-Name: Erica Barbosa
Author-X-Name-First: Erica
Author-X-Name-Last: Barbosa
Title: Impact investing: a preliminary analysis of emergent primary and secondary exchange platforms
Abstract:
The purpose of this article is to present a brief synthesis
of the impact investment market as it relates to barriers to the full
development of this market. We examine some developments that have emerged
to address these barriers. We include a brief overview of the impact
investing field and the current landscape of social enterprises, the vast
majority of which are non-profit organizations increasingly engaged in
business activity. We address the lack of liquidity in this market and the
need for secondary markets that enable investor exit. We present a
preliminary summary of findings on a few exchange platforms - primary and
secondary - that have emerged very recently to coordinate this market in
several countries.
Journal: Journal of Sustainable Finance & Investment
Pages: 111-123
Issue: 2
Volume: 3
Year: 2013
Month: 4
X-DOI: 10.1080/20430795.2013.776258
File-URL: http://hdl.handle.net/10.1080/20430795.2013.776258
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:2:p:111-123
Template-Type: ReDIF-Article 1.0
Author-Name: Sean Geobey
Author-X-Name-First: Sean
Author-X-Name-Last: Geobey
Author-Name: Olaf Weber
Author-X-Name-First: Olaf
Author-X-Name-Last: Weber
Title: Lessons in operationalizing social finance: the case of Vancouver City Savings Credit Union
Abstract:
With $16.2 billion of assets the Vancouver City Savings
Credit Union (Vancity) has the largest asset base of any member of the
Global Alliance on Banking and Values, a global association of ethical
banks, and also has the largest asset base of Canada's credit unions. This
article analyses the social financing Vancity conducts and the disclosure
of the social impact of the products and services they offer. The results
suggest that they are on the path to realizing a 100% social finance
portfolio but that they have not arrived there yet. In particular, their
personal retail products and services still offer room for improvement.
Furthermore, their reporting lacks an indicator based on comparative
figures that would allow stakeholders to compare the impact of Vancity's
products and services with those of other financial institutions.
Journal: Journal of Sustainable Finance & Investment
Pages: 124-137
Issue: 2
Volume: 3
Year: 2013
Month: 4
X-DOI: 10.1080/20430795.2013.776259
File-URL: http://hdl.handle.net/10.1080/20430795.2013.776259
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:2:p:124-137
Template-Type: ReDIF-Article 1.0
Author-Name: Madeleine Evans
Author-X-Name-First: Madeleine
Author-X-Name-Last: Evans
Title: Meeting the challenge of impact investing: how can contracting practices secure social impact without sacrificing performance?
Abstract:
Impact investors seek financial return and positive economic,
social or environmental impact. While certain segments of the impact
investing industry see strong returns and high positive impact as
conflicting objectives, others argue that strong performance across both
objectives can be simultaneously achieved. Despite the importance of this
question to the industry, no widely accepted framework exists that enables
impact investors to determine whether and how they will be able to invest
without a trade-off. This article draws on contract theory and the
analysis of incentives in multitask principal-agent relationships in an
attempt to fill the void. For impact investors, this article pioneers a
theoretical framework for the discussion of strategy, offering a first set
of hypotheses that can be elaborated through further theoretical work and
tested against actual experience. Within contract theory, this article
fits most closely alongside the applied multitask literature concerned
with an agent assigned to a financial and an environmental task
(Sinclair-Desgagné, B., and H. L. Gabel. 1997. "Environmental Auditing in
Management Systems and Public Policy." Journal of Environmental
Economics and Management 33 (3): 331-346; Lothe, S., I. Myrtveit,
and T. Trapani. 1999. "Compensation Systems for Improving Environmental
Performance." Business Strategy and the Environment 8
(6): 313-321; Lothe, S., and I. Myrtveit. 2003. "Compensation Systems for
Green Strategy Implementation: Parametric and Non-Parametric Approaches."
Business Strategy and the Environment 12 (3): 191-203),
while the theory referenced within bridges models from Holmstrom and
Milgrom (1991. "Multitask Principal-Agent Analyses: Incentive Contracts,
Asset Ownership, and Job Design." Journal of Law, Economics, &
Organization 7: 24-52), Feltham and Xie (1994. "Performance
Measure Congruity and Diversity in Multitask Principal/Agent Relations."
The Accounting Review 69 (3): 429-453) and Budde (2007.
"Performance Measure Congruity and the Balanced Scorecard."
Journal of Accounting Research 45 (3): 515-539).
Journal: Journal of Sustainable Finance & Investment
Pages: 138-154
Issue: 2
Volume: 3
Year: 2013
Month: 4
X-DOI: 10.1080/20430795.2013.776260
File-URL: http://hdl.handle.net/10.1080/20430795.2013.776260
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Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas E. Florek
Author-X-Name-First: Nicholas E.
Author-X-Name-Last: Florek
Title: Enabling social enterprise through regulatory innovation: a case study from the United Kingdom
Abstract:
Social enterprise, broadly defined as the innovative use of
resources to achieve social goals, is an expanding part of the global
economy that has the potential to address pressing social problems ranging
from education to health care. It is a growing component of what is often
referred to as the third sector; the part of the economy that encompasses
organizations that are neither governmental nor for-profit business
institutions. Within the last two decades, governments have begun to take
note of this trend and make policy changes to support the sustained
emergence of these enterprises. One policy option that has recently
emerged in Europe and the United States is the creation of a separate
regulatory framework for social enterprises via new forms of legal
organization. This article explores the effectiveness of one new type of
social enterprise legal organization, the UK's Community Interest Company.
By analysing data collected from the UK's National Survey of Third
Sector Organisations in 2009, this article asks whether
organizations operating as Community Interest Companies exhibit some of
the characteristics that policy makers intended to foster when drafting
the new legislation? Our findings suggest that the hypothesized
relationship is positive in both these cases but the results of the
analysis support only a positive relationship between community interest
companies and prioritization of earned income. Community interest
companies are more likely to rely on earned income for at least 50% of
their funding than any other organizational form among third sector
organizations.
Journal: Journal of Sustainable Finance & Investment
Pages: 155-175
Issue: 2
Volume: 3
Year: 2013
Month: 4
X-DOI: 10.1080/20430795.2013.776261
File-URL: http://hdl.handle.net/10.1080/20430795.2013.776261
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:2:p:155-175
Template-Type: ReDIF-Article 1.0
Author-Name: Kristian Alm
Author-X-Name-First: Kristian
Author-X-Name-Last: Alm
Author-Name: Riikka Sievänen
Author-X-Name-First: Riikka
Author-X-Name-Last: Sievänen
Title: Institutional investors, climate change and human rights
Journal: Journal of Sustainable Finance & Investment
Pages: 177-183
Issue: 3
Volume: 3
Year: 2013
Month: 7
X-DOI: 10.1080/20430795.2013.791139
File-URL: http://hdl.handle.net/10.1080/20430795.2013.791139
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:3:p:177-183
Template-Type: ReDIF-Article 1.0
Author-Name: Kristian Alm
Author-X-Name-First: Kristian
Author-X-Name-Last: Alm
Title: 'The dark side of the moon': a theoretical framework of complicity applied to the Norwegian Government Pension Fund Global
Abstract:
This article analyses the risks associated with the Norwegian
Government Pension Fund Global's (NGPFG) complicity in the violation of
foreign citizens and their human rights as carried out by the fund's
numerous portfolio companies. The NGPFG is a Sovereign Wealth Fund (SWF).
In contrast to the SWF's in the Middle East, the NGPFG is the only SWF
that is located in a country with high democratic standards. The fund is
one of the largest institutional investors on the global financial scene.
As of October 2012, the fund possessed assets of 3755 trillion NOK (652
billion US$), invested only overseas in 7354 companies. Of this amount,
58.7% is invested in private limited companies, 41% in bond-issuing
companies and 0.3% in real estate. On the basis of current research on
shareholders' complicity, this article develops a theoretical framework on
investor complicity. The article applies this theoretical framework of
complicity to several empirical phenomena characterizing the macro-, meso-
and micro-level of the NGPFG portfolio.
Journal: Journal of Sustainable Finance & Investment
Pages: 184-203
Issue: 3
Volume: 3
Year: 2013
Month: 7
X-DOI: 10.1080/20430795.2013.791140
File-URL: http://hdl.handle.net/10.1080/20430795.2013.791140
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:3:p:184-203
Template-Type: ReDIF-Article 1.0
Author-Name: Riikka Sievänen
Author-X-Name-First: Riikka
Author-X-Name-Last: Sievänen
Title: The non-response of pension funds to climate change and human rights
Abstract:
Our analysis suggests that pension funds face challenges when
they implement into practice the usual definition of responsible
investment: the integration of environmental, social and corporate
governance factors into investment decision making. The current definition
of responsible investment seems to allow various interpretations and may
therefore discourage pension funds from developing clear responsible
investment practices that would allow them to address public policies such
as climate change and human rights.
Journal: Journal of Sustainable Finance & Investment
Pages: 204-222
Issue: 3
Volume: 3
Year: 2013
Month: 7
X-DOI: 10.1080/20430795.2013.791141
File-URL: http://hdl.handle.net/10.1080/20430795.2013.791141
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:3:p:204-222
Template-Type: ReDIF-Article 1.0
Author-Name: Ville-Pekka Sorsa
Author-X-Name-First: Ville-Pekka
Author-X-Name-Last: Sorsa
Title: Social responsibility and the political: studying the politics of social responsibility in institutional investment
Abstract:
The political aspects of social responsibility (SR) have been
much debated in academia, but so far there has been little attention paid
to how the political usage of SR discourse shapes everyday practices in
organizations. The first purpose of this essay is to develop a framework
based on post-foundational political thought and institutionalist
approaches to SR in order to explain how the usage of SR discourse shapes
activities in organizations. The second purpose is to demonstrate the
application of this framework in order to analyse the politics of SR in
institutional investment. This article first studies what kind of
theoretical foci are provided by influential reviews in SR and socially
responsible investment (SRI) literature. It then demonstrates, by means of
a sample case study focused on Finnish pension insurance companies, how SR
discourse can politically shape institutional investment practices. The
findings suggest that SR discourse can politically shape investment
practice by means of factors that would typically be excluded from
explanation if studied on the basis of the literature reviewed.
Journal: Journal of Sustainable Finance & Investment
Pages: 223-237
Issue: 3
Volume: 3
Year: 2013
Month: 7
X-DOI: 10.1080/20430795.2013.791142
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:3:p:223-237
Template-Type: ReDIF-Article 1.0
Author-Name: William Rees
Author-X-Name-First: William
Author-X-Name-Last: Rees
Author-Name: Tatiana Rodionova
Author-X-Name-First: Tatiana
Author-X-Name-Last: Rodionova
Title: What type of controlling investors impact on which elements of corporate social responsibility?
Abstract:
Using a large sample of 3541 companies drawn from 30
countries during the period from 2002 to 2010, we analysed the impact of
strategic shareholdings on different elements of corporate social
responsibility (CSR). We find that total strategic or closely held equity
holdings adversely affect the environmental, social and governance scores
provided by ASSET4. However, this effect is largely driven by entrenched
and undiversified holdings such as family and corporate cross-holdings,
whereas diversified institutional investments typically have an
insignificant impact. The influence of undiversified holdings includes
particularly strong negative impacts on measures that include climate
change, environmental management, business ethics and human rights. Thus
the impact of ownership on CSR performance differs depending on both the
type of owner and the type of CSR.
Journal: Journal of Sustainable Finance & Investment
Pages: 238-263
Issue: 3
Volume: 3
Year: 2013
Month: 7
X-DOI: 10.1080/20430795.2013.791143
File-URL: http://hdl.handle.net/10.1080/20430795.2013.791143
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:3:p:238-263
Template-Type: ReDIF-Article 1.0
Author-Name: Ole Alexander Jensen
Author-X-Name-First: Ole Alexander
Author-X-Name-Last: Jensen
Author-Name: Peter Seele
Author-X-Name-First: Peter
Author-X-Name-Last: Seele
Title: An analysis of sovereign wealth and pension funds' ethical investment guidelines and their commitment thereto
Abstract:
Sovereign wealth and pension funds make use of investment
guidelines as they invest for substantial part public money also, and
thus, are subject to greater public scrutiny and expectations of
environmental sustainability than privately owned funds. Thus informed,
this article studies 13 sovereign wealth and pension funds selected by
their appearance in the Truman scoreboard as having ethical investment
guidelines addressing social and environmental issues. To analyse the
ethical investment guidelines, the investigation first determines whether
or not the selected funds conform to the Global Compact (RQ1). The
investigation then determines if the selected funds also make use of
sanctions to bring their ethical guidelines to bear (RQ2). The findings of
the quantitative content analysis of the funds' ethical guidelines reveal
that a quarter per cent of the funds fully adhere to the Global Compact.
One of the funds ensures their ethical guidelines are put into practice by
sanctions as exclusions from the fund by divestment. Finally, the authors
arrive at the conclusion that only funds with published investment
guidelines and applicable sanctions may influence corporate behaviour, and
thus, take up their (as well as their investments') social and
environmental responsibilities.
Journal: Journal of Sustainable Finance & Investment
Pages: 264-282
Issue: 3
Volume: 3
Year: 2013
Month: 7
X-DOI: 10.1080/20430795.2013.791144
File-URL: http://hdl.handle.net/10.1080/20430795.2013.791144
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:3:p:264-282
Template-Type: ReDIF-Article 1.0
Author-Name: Neil Eccles
Author-X-Name-First: Neil
Author-X-Name-Last: Eccles
Title: Sustainable investment, Dickens, Malthus and Marx
Abstract:
The essay which you are contemplating
reading at this moment winds a tortuous path from Dickens to Malthus to
Marx to today. It weaves like a drunk from an 'empty signifier', through
an oxymoron and finally settles on a paradox. And with a boldness
indicating a certain degree of psychosis it contemplates the coming of the
'triangle'.
Journal: Journal of Sustainable Finance & Investment
Pages: 287-302
Issue: 4
Volume: 3
Year: 2013
Month: 10
X-DOI: 10.1080/20430795.2013.821398
File-URL: http://hdl.handle.net/10.1080/20430795.2013.821398
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:4:p:287-302
Template-Type: ReDIF-Article 1.0
Author-Name: Elton McGoun
Author-X-Name-First: Elton
Author-X-Name-Last: McGoun
Author-Name: Jason Makansi
Author-X-Name-First: Jason
Author-X-Name-Last: Makansi
Title: Markets, metaphors, and mania
Abstract:
Financial markets have sufficient power
over the real economy to enable them to expand their profitable activities
and extract compensation for their services from the real economy -- not
necessarily commensurate with the economic value of those services --
without the real economy being aware of it being done. Given that markets
have this ability to manipulate the economy to their advantage, there is
no guarantee that the equilibrium size of the market -- meaning that there
is no incentive for firms to either enter or exit -- is the equilibrium
size of the market for the most efficient operation of the real economy.
Financial markets are quite literally parasites in every biological sense
of the word, and more widespread recognition of this apt metaphor might
lead to more effective public policy decision-making. Market insiders are
not selfless public servants but are looking out for their own
self-interest. There is a market for financial services that itself has
few, if any, characteristics of a free market.
Journal: Journal of Sustainable Finance & Investment
Pages: 303-313
Issue: 4
Volume: 3
Year: 2013
Month: 10
X-DOI: 10.1080/20430795.2013.770647
File-URL: http://hdl.handle.net/10.1080/20430795.2013.770647
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:4:p:303-313
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Tischer
Author-X-Name-First: Daniel
Author-X-Name-Last: Tischer
Title: Swimming against the tide: ethical banks as countermovement
Abstract:
This paper adds to the literature on bank
ethics, social movements and stakeholder engagement by presenting ethical
banks (EBs) as a countermovement to the process of financialisation.
Following the 2008 financial crisis, ethical banks have expanded markedly.
Some suggest that this growth is opportunist in nature and reasoned in the
public's disenfranchment with commercial banks. However, this paper seeks
to demonstrate how British EBs have been, and remain, connected to social
movements and civil society organisations (CSOs). It employs a
mixed-method approach to review EB coverage in media and to explore three
UK-based EBs' connections with CSOs via Social Network Analysis, with the
aim to compare them to, and contrast them from, building societies, credit
unions and other alternative banks. The link between EBs and CSOs were
further examined in interviews with EBs. Findings support the idea of EBs
in the UK as countermovement by highlighting how connections with CSOs
constrain EBs behaviour, but at the same time give EBs privileged access
to niche markets.
Journal: Journal of Sustainable Finance & Investment
Pages: 314-332
Issue: 4
Volume: 3
Year: 2013
Month: 10
X-DOI: 10.1080/20430795.2013.837807
File-URL: http://hdl.handle.net/10.1080/20430795.2013.837807
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:4:p:314-332
Template-Type: ReDIF-Article 1.0
Author-Name: Yves Gendron
Author-X-Name-First: Yves
Author-X-Name-Last: Gendron
Title: Learning from mistakes: can the Global Financial Crisis translate into social progress?
Abstract:
In this essay, I take position against the
idea that contemporary societies necessarily learn from mistakes. Drawing
on a constellation of different though converging theoretical templates, I
first criticize the claim that the Global Financial Crisis will somehow
inevitably translate into progress in the field of finance practice,
through a plethora of measures such as a more effective and constraining
regulatory environment. Learning from mistakes constitutes, and will
always constitute, a fragile endeavour. Yet, in spite of the difficulties
involved, I also maintain that some progress can be made, for instance
when people are rendered more aware of the difficulties involved in
realizing social change, and of the key issues and risks they face,
individually and collectively, on the shorter and longer
run. In this respect, I argue that the core of finance research has played
a significant role in lessening society's ability to learn from mistakes
-- since finance's lack of diversity in research styles translates into a
body of knowledge which is not particularly meaningful when trying to make
sense of infrequent yet highly significant events unfolding in the
political economy. Although I am aware of the underlying obstacles, there
is a need for finance academics to increase their commitment to the ideal
of research diversity and engage more thoroughly in the examination of
finance in action.
Journal: Journal of Sustainable Finance & Investment
Pages: 333-343
Issue: 4
Volume: 3
Year: 2013
Month: 10
X-DOI: 10.1080/20430795.2013.823854
File-URL: http://hdl.handle.net/10.1080/20430795.2013.823854
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Template-Type: ReDIF-Article 1.0
Author-Name: David Gleicher
Author-X-Name-First: David
Author-X-Name-Last: Gleicher
Title: Rethinking money and the state: a semiotic turn
Abstract:
A novel conception of money and the State
is offered, in the context of post-golden-age financial and political
systems (roughly from 1980 to the present), and with regard to the
sovereign-currency States, focusing particularly on the USA. The basic
elements of the paper are: (1) a novel semiotic understanding of money as
language rather than as a unit of measure, money understood to communicate
goods-ownership to the public, and debt ownership to the corporation; (2)
a discussion of financial unsustainability under the present system in
which the banking oligopolies possess a newfound freedom to create money
capital both more independently and on a significantly larger scale than
under the previous Glass--Steagall regime; (3) a critique of the
neo-liberal simulation (in the sense of Baudrillard) of government debt
and dissimulation of the sovereign-currency State, able to create money at
will; (4) a delineation of two fundamental policy objectives: to genuinely
meet the State's obligation to assure the life and pursuit of happiness
that all citizens are entitled to, and secondly, to decompress
ever-expanding and ever-dangerous capital; (5) specific, highly original
policy actions are put forward, aimed at meeting these policy objectives,
notably lifting budgetary constraints on federal government spending and
transforming the central bank into a repository of guaranteed household
deposits.
Journal: Journal of Sustainable Finance & Investment
Pages: 344-359
Issue: 4
Volume: 3
Year: 2013
Month: 10
X-DOI: 10.1080/20430795.2013.854109
File-URL: http://hdl.handle.net/10.1080/20430795.2013.854109
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:4:p:344-359
Template-Type: ReDIF-Article 1.0
Author-Name: Mary Ho
Author-X-Name-First: Mary
Author-X-Name-Last: Ho
Title: The social construction perspective on ESG issues in SRI indices
Abstract:
How are socially responsible investment
(SRI) indices' and environment, social and governance (ESG) criteria
derived? This article reviews the social construction theory and examines
how the existing literature addresses and offers insights that can assist
in answering the question. The article argues that social construction
theory offers crucial insights into the development of ESG criteria in SRI
indices and normative corporate sustainability practices. An examination
of the development of ESG issues and SRI indices' ESG criteria from 1990s
onwards has been presented.
Journal: Journal of Sustainable Finance & Investment
Pages: 360-373
Issue: 4
Volume: 3
Year: 2013
Month: 10
X-DOI: 10.1080/20430795.2013.772889
File-URL: http://hdl.handle.net/10.1080/20430795.2013.772889
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Handle: RePEc:taf:jsustf:v:3:y:2013:i:4:p:360-373
Template-Type: ReDIF-Article 1.0
Author-Name: Olaf Weber
Author-X-Name-First: Olaf
Author-X-Name-Last: Weber
Title: The financial sector's impact on sustainable development
Journal: Journal of Sustainable Finance & Investment
Pages: 1-8
Issue: 1
Volume: 4
Year: 2014
Month: 1
X-DOI: 10.1080/20430795.2014.887345
File-URL: http://hdl.handle.net/10.1080/20430795.2014.887345
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:1:p:1-8
Template-Type: ReDIF-Article 1.0
Author-Name: Arnim Wiek
Author-X-Name-First: Arnim
Author-X-Name-Last: Wiek
Author-Name: Olaf Weber
Author-X-Name-First: Olaf
Author-X-Name-Last: Weber
Title: Sustainability challenges and the ambivalent role of the financial sector
Abstract:
Over the past few decades, the financial
sector has sought to positively contributing to sustainable development
through innovative products and services. However, in its
business-as-usual the financial sector continues to contribute to military
interventions, environmental degradation, growing disparity of incomes,
de-coupling of finance and real economy, and global economic crises. This
article presents a framework of how to appraise the positive and negative
contributions of the financial sector to sustainable development, from a
systems perspective. On this base, the article proposes an approach for
designing effective finance interventions to complex sustainability
problems. Based on similar experiences from studies on water governance
and technology development, the approach proposes a participatory
procedure, first, to identify the role of the financial sector in complex
sustainability problem constellations and, second, to develop intervention
strategies for financial intermediaries interested in shifting their role
and mitigating the identified problems. We discuss challenges of
establishing causal links within the problem constellation, which is a
prerequisite for successful intervention design, as well as in the
cause-effect structure of the interventions themselves. The article
concludes with outlining future research needs.
Journal: Journal of Sustainable Finance & Investment
Pages: 9-20
Issue: 1
Volume: 4
Year: 2014
Month: 1
X-DOI: 10.1080/20430795.2014.887349
File-URL: http://hdl.handle.net/10.1080/20430795.2014.887349
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Template-Type: ReDIF-Article 1.0
Author-Name: Paul Shrivastava
Author-X-Name-First: Paul
Author-X-Name-Last: Shrivastava
Author-Name: Amr Addas
Author-X-Name-First: Amr
Author-X-Name-Last: Addas
Title: The impact of corporate governance on sustainability performance
Abstract:
We examine the relationship between
corporate governance and sustainability, using the extensive Bloomberg
Environmental, Social and Governance (ESG) data universe. Eccles, Ioannou,
and Serafeim [2012. The Impact of a Corporate Culture of
Sustainability on Corporate Behavior and Performance. National
Bureau of Economic Research, Inc., NBER Working Papers: 17950] argued that
a corporate culture of sustainability plays an important role in various
facets of a firm's corporate behaviour and performance. We argue that
quality corporate governance itself can engender high sustainability
performance. We also build on the work of Aras and Crowther [2008.
"Governance and Sustainability: An Investigation into the Relationship
Between Corporate Governance and Corporate Sustainability."
Management Decision 46 (3): 433-448] by investigating the
relationship between specific corporate governance and sustainability
characteristics of S&P 100 companies in the USA. Our initial exploratory
findings suggest that environmental disclosure scores and ESG disclosure
scores are strongly influenced by governance disclosure scores. Board
meeting attendance is an important predictor of both scores, suggesting
that more disciplined boards result in better sustainability performance.
Boards with a higher percentage of independent directors also have higher
disclosure scores and are more likely to have climate change and an
environmental supply chain management policy in place. They are also more
likely to be Global Reporting Initiative compliant, to have a green
building policy and social supply chain management. A disturbing pattern
emerges, however, when assessing firms' follow-through on declared
commitments. It turns out that few firms that purport to have climate
change policies in place have actually discussed climate change risks or
opportunities. We discuss some implications of these preliminary findings.
Journal: Journal of Sustainable Finance & Investment
Pages: 21-37
Issue: 1
Volume: 4
Year: 2014
Month: 1
X-DOI: 10.1080/20430795.2014.887346
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Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Steiauf
Author-X-Name-First: Thomas
Author-X-Name-Last: Steiauf
Author-Name: Henry Schäfer
Author-X-Name-First: Henry
Author-X-Name-Last: Schäfer
Title: From integration to impact - a new investment climate for Germany's SRI landscape
Abstract:
For a long time Germany has been an
underperformer in Socially/Sustainable and Responsible Investment (SRI)
which are typically based on mutual investment funds. As many Cooperative
and Savings Banks now very successfully offer investments into bio energy
or solar projects/companies (among others), SRI seems to stand at the edge
of a relaunch. This paper examines the current situation and trends
regarding the German market of SRI in the field of climate protection
funds, the availability of its products and their perception by private
retail investors. As a starting point for further empirical research, the
paper describes the derivation of a research question that consists of an
analysis of German retail investors' preferences for climate change
related investments in mutual funds. Along with this, we describe the
research methodology with which we intend to find out how the financial
market in Germany and its financial institutions can ease the change in
energy policy and climate change in Germany when designing climate
protection fund products that match the preferences of the investors.
Journal: Journal of Sustainable Finance & Investment
Pages: 38-60
Issue: 1
Volume: 4
Year: 2014
Month: 1
X-DOI: 10.1080/20430795.2014.887347
File-URL: http://hdl.handle.net/10.1080/20430795.2014.887347
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Template-Type: ReDIF-Article 1.0
Author-Name: Jason Thistlethwaite
Author-X-Name-First: Jason
Author-X-Name-Last: Thistlethwaite
Title: Private governance and sustainable finance
Abstract:
The use of private environmental
governance (PEG) represents a unique strategy designed to help generate
political authority for sustainable financial practices. Several
collaborations between financial firms and environmental non-governmental
organizations, including the Carbon Disclosure Project, Investor Network
on Climate Risk and Climate Disclosure Standards Board, have embraced PEG
to improve the financial disclosure of climate change risks within
financial markets. How does this strategy use sustainable financial
practices in ways that generate authority? This paper argues that PEG
helps deploy technical knowledge in ways that cultivate support among
politically influential constituencies for the adoption of sustainable
financial practices. To make this conclusion, the paper will borrow from
Global Environmental Politics and International Political Economy research
on the use of private governance as a mechanism that steers and
coordinates behavior. This focus on private governance helps address an
important gap within sustainable finance research on the link between
technical practices that reduce environmental externalities and political
authority.
Journal: Journal of Sustainable Finance & Investment
Pages: 61-75
Issue: 1
Volume: 4
Year: 2014
Month: 1
X-DOI: 10.1080/20430795.2014.887348
File-URL: http://hdl.handle.net/10.1080/20430795.2014.887348
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Template-Type: ReDIF-Article 1.0
Author-Name: Katrin Kaufer
Author-X-Name-First: Katrin
Author-X-Name-Last: Kaufer
Title: Social responsibility as a core business model in banking: a case study in the financial sector
Abstract:
This paper offers an in-depth case study
of a bank that combines profitability with social responsibility as its
core business model. The case study reveals the interdependence between
innovations of financial products and societal challenges in the areas
that the bank is operating in, and identifies limitations and challenges
of this business model.
Journal: Journal of Sustainable Finance & Investment
Pages: 76-89
Issue: 1
Volume: 4
Year: 2014
Month: 1
X-DOI: 10.1080/20430795.2014.887350
File-URL: http://hdl.handle.net/10.1080/20430795.2014.887350
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:1:p:76-89
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Haigh
Author-X-Name-First: Matthew
Author-X-Name-Last: Haigh
Title: Finance and ethics
Journal: Journal of Sustainable Finance & Investment
Pages: 91-92
Issue: 2
Volume: 4
Year: 2014
Month: 4
X-DOI: 10.1080/20430795.2014.894703
File-URL: http://hdl.handle.net/10.1080/20430795.2014.894703
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:2:p:91-92
Template-Type: ReDIF-Article 1.0
Author-Name: Ioannis E. Nikolaou
Author-X-Name-First: Ioannis E.
Author-X-Name-Last: Nikolaou
Author-Name: George Kourouklaris
Author-X-Name-First: George
Author-X-Name-Last: Kourouklaris
Author-Name: Thomas A. Tsalis
Author-X-Name-First: Thomas A.
Author-X-Name-Last: Tsalis
Title: A framework to assist the financial community in incorporating water risks into their investment decisions
Abstract:
Recently, much attention has been paid to
the fundamental meaning of water resources, with regard to the efficient
operation of the business community and the viability of the financial
market by a range of financial stakeholders such as the banking sector,
insurance companies and investors. The main concern of these actors is to
avoid significant financial losses associated with water problems namely,
the deterioration of water quality, water overuse, supply chain risks and
climate change effects. This article proposes a framework to assess
business risks that are associated with water resource problems. The
proposed framework is based on ideas from current benchmarking and scoring
accounting systems which drew data from published corporate environmental
reports. By identifying the relationship between environmental and
financial issues, it would enable actors of financial markets to make
better investment decisions. It was applied to a number of Greek
businesses certified by the Environmental Management and Audit Schemes
certification system.
Journal: Journal of Sustainable Finance & Investment
Pages: 93-109
Issue: 2
Volume: 4
Year: 2014
Month: 4
X-DOI: 10.1080/20430795.2013.823853
File-URL: http://hdl.handle.net/10.1080/20430795.2013.823853
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Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Tobias Peylo
Author-X-Name-First: Benjamin Tobias
Author-X-Name-Last: Peylo
Author-Name: Stefan Schaltegger
Author-X-Name-First: Stefan
Author-X-Name-Last: Schaltegger
Title: An equation with many variables: unhiding the relationship between sustainability and investment performance
Abstract:
Financial investment performance of stock
portfolios is driven by many factors of influence like portfolio
diversification, quality of funds management or gravitational effects of
market phases. It is, therefore, quite possible that relationships between
sustainability and financial performance elude measurability because they
may be overshadowed and dominated by other, more powerful or temporarily
more influential factors. Using a new quantitative model for portfolio
optimisation that simultaneously controls for both financial and
sustainability related effects, we investigate whether and how different
levels of sustainability in stock portfolios influence investment return
when other factors with known influence on investment performance are
neutralised. The model is applied to the German Stock Market Index
Deutscher Aktienindex (DAX) for the period of 2003-2012 with regard to
varying market phases. The findings show a distinct yet nonlinear
relationship between sustainability and investment performance that is
especially strong in phases of crisis. These results may indicate a
business case for socially responsible investment (SRI) that has not yet
been fully capitalised with the existing SRI instruments.
Journal: Journal of Sustainable Finance & Investment
Pages: 110-126
Issue: 2
Volume: 4
Year: 2014
Month: 4
X-DOI: 10.1080/20430795.2013.837808
File-URL: http://hdl.handle.net/10.1080/20430795.2013.837808
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Template-Type: ReDIF-Article 1.0
Author-Name: Laura Mervelskemper
Author-X-Name-First: Laura
Author-X-Name-Last: Mervelskemper
Author-Name: Daniel Kaltofen
Author-X-Name-First: Daniel
Author-X-Name-Last: Kaltofen
Author-Name: Stefan Stein
Author-X-Name-First: Stefan
Author-X-Name-Last: Stein
Title: Are sustainable investment funds worth the effort?
Abstract:
The eco-efficiency approach [Schaltegger,
S., and A. Sturm. 1990. "Ökologische Rationalität." Die
Unternehmung 44 (4): 273-290; Holliday Jr., C. O., S.
Schmidheiny, and P. Watts. 2002. Walking the Talk: The Business
Case for Sustainable Development. San Francisco: Berrett-Koehler
Publishers] suggest an outclassing shareholder value for sustainable
investments as a result of more efficient risk and resource management,
broader consumer acceptance and legitimation, fewer stakeholder conflicts,
a higher level of labour satisfaction and a higher innovation rate. By
contrast, modern portfolio theory, according to Markowitz [1952.
"Portfolio Selection." The Journal of Finance 7 (1):
77-91] and Sharpe [1963. "A Simplified Model for Portfolio Analysis."
Management Science 9 (2): 277-293], postulates a limited
risk diversification and thus sub-optimal risk-adjusted returns for any
less than perfect diversified asset portfolio like sustainable investment
funds. Costs for running a firm 'sustainable' are supposed to decrease
profits and destroy shareholder value even further. However, most previous
empirical research found sustainable investment to be priced adequately.
The scope of this study is to validate and update these results for the
recent financial crisis from mid-2007 until mid-2011 including both strong
bear and bull market climates. Comparing the performance of 47 actively
managed German sustainable investment funds with the Morgan Stanley
Capital International World Index as a benchmark, we do not find
significant evidence for a mispricing of sustainable investments both
during and post the financial crisis. The results underline that investors
in German sustainability funds still do not have to sacrifice financial
performance. For companies, our findings confirm the effectiveness to use
stock markets as a source of capital even in the financial crisis.
Journal: Journal of Sustainable Finance & Investment
Pages: 127-146
Issue: 2
Volume: 4
Year: 2014
Month: 4
X-DOI: 10.1080/20430795.2013.837809
File-URL: http://hdl.handle.net/10.1080/20430795.2013.837809
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:2:p:127-146
Template-Type: ReDIF-Article 1.0
Author-Name: Margot Hill Clarvis
Author-X-Name-First: Margot
Author-X-Name-Last: Hill Clarvis
Author-Name: Martin Halle
Author-X-Name-First: Martin
Author-X-Name-Last: Halle
Author-Name: Ivo Mulder
Author-X-Name-First: Ivo
Author-X-Name-Last: Mulder
Author-Name: Masaru Yarime
Author-X-Name-First: Masaru
Author-X-Name-Last: Yarime
Title: Towards a new framework to account for environmental risk in sovereign credit risk analysis
Abstract:
Despite the growing body of evidence on
ecosystem degradation and on-going development in measuring its economic
implications, there remains a lack of understanding and integration of
environmental risks into investment decision. There is, therefore,
currently a weak financial rationale and a limited choice of tools to
assess the materiality of environmental risk for the sovereign bond
market. Improving investor understanding of the materiality of
environmental risks is likely to be crucial to limiting risk exposure of
important investments and to encouraging the transition to a greener more
sustainable economy. This article presents the development and initial
application of a framework that aims to improve the financial rationale
for assessing the materiality of environmental risk in the sovereign bond
market. It is the result of a collaborative and inter-disciplinary project
of researchers and practitioners from a group of financial institutions,
the United Nations Environment Programme Finance Initiative, and Global
Footprint Network. Results not only show the long- and short-term
implications of environmental risk for a wide variety of resource
profiles, but also how these risks relate to macroeconomic factors that
are already recognised as relevant to sovereign credit risk. This,
therefore, presents a more accurate reflection of how these factors might
influence the risk or return situation for an investor. More collaborative
and innovative research between scientists and practitioners could improve
both knowledge and methods to effectively account for the financial
materiality of natural resource risks for a country's economy.
Journal: Journal of Sustainable Finance & Investment
Pages: 147-160
Issue: 2
Volume: 4
Year: 2014
Month: 4
X-DOI: 10.1080/20430795.2013.837810
File-URL: http://hdl.handle.net/10.1080/20430795.2013.837810
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:2:p:147-160
Template-Type: ReDIF-Article 1.0
Author-Name: Bogdan Dragos
Author-X-Name-First: Bogdan
Author-X-Name-Last: Dragos
Author-Name: Inigo Wilkins
Author-X-Name-First: Inigo
Author-X-Name-Last: Wilkins
Title: An ecological/evolutionary perspective on high-frequency trading
Abstract:
What follows is an account of the concepts
of information and noise as they apply to an analysis of high-frequency
trading according to 'heterodox economics'. The text proposes a framework
according to which finance can best be understood as a complex technical
system tightly coupled to other social, economic systems. To be more
precise, the paper attempts to show how finance is not just any complex
system but it can be understood as an ecology of evolving socio-technical
systems, sub-systems such as investment banks, hedge funds, high-frequency
trading traders, retail investors, pensions funds, etc. All of these are
the technical building blocks of our financial markets. Moreover, we
attempt to show how concepts from other disciplines, such as entropy,
information and noise, can be useful in opening up the world of finance
from its traditional economic milieu. Although the following text is
confined to the discursive realm of humanities/social sciences, it echoes
the analytical approaches of econophysics and experimental economics and
particularly the ongoing research around 'computational evolutionary
economics' [Mirowski, P. 2007. "Markets Come to Bits: Evolution,
Computation and Markomata in Economic Science." Journal of
Economic Behavior & Organization 63: 209-242; Mirowski, P. 2010.
"Inherent Vice: Minsky, Markomata, and the Tendency of Markets to
Undermine Themselves." Journal of Institutional Economics
6: 415-443]. This becomes particularly relevant in the context of the
so-called robot phase transition from human-dominated trading to the more
automatic electronic trading. The current microstructure of automatic
market-making can be understood as an 'ecological niche' developed by
ultra-fast trading algorithms which 'feed' on the asymmetries and
disparities of the wider 'financial ecology'. They do this by dissipating
noise and adding to the complexity of market microstructure a behaviour
that can push the whole ecology to critical thresholds, sometimes referred
to as flash crashes. This whole process can ultimately be described by
Philip Mirowski's notion of 'inherent vice', as well as by Sir Robert
May's concept of instability 'which develops in ecosystems upon increasing
bio-diversity' [Caccioli, F., M. Marsili, and P. Vivo. 2007. "Eroding
Market Stability by Proliferation of Financial Instruments." The
European Physical Journal B - Condensed Matter and Complex
Systems 71: 467-479 ; Haldane, A., and R. May. 2011. "Systemic
Risk in Banking Ecosystems." Nature 469: 351-355].
Journal: Journal of Sustainable Finance & Investment
Pages: 161-175
Issue: 2
Volume: 4
Year: 2014
Month: 4
X-DOI: 10.1080/20430795.2014.883300
File-URL: http://hdl.handle.net/10.1080/20430795.2014.883300
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:2:p:161-175
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Sajid Saeed
Author-X-Name-First: Muhammad Sajid
Author-X-Name-Last: Saeed
Title: A cross-country analysis to investigate the true role of microfinance institutions in developed and developing economies
Abstract:
It is perceived that the microfinance
institutions (MFIs) served millions of poor people by providing them easy
access to loans with better repayment rates. The purpose of this study is
to conduct a cross-country comparison among three Asian developing
countries (Bangladesh, Pakistan, and India) and two developed economies
(UK and USA) to evaluate the effectiveness of their MFIs in serving
low-income people. The microfinance data for six years from 2006 to 2011
are collected from authentic sources. The findings of the study reveal
that Bangladesh and India are comparatively ahead of other nations in
serving poor people by providing them microcredits.
Journal: Journal of Sustainable Finance & Investment
Pages: 176-191
Issue: 2
Volume: 4
Year: 2014
Month: 4
X-DOI: 10.1080/20430795.2014.883301
File-URL: http://hdl.handle.net/10.1080/20430795.2014.883301
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:2:p:176-191
Template-Type: ReDIF-Article 1.0
Author-Name: Felipe Calderon
Author-X-Name-First: Felipe
Author-X-Name-Last: Calderon
Author-Name: Li Choy Chong
Author-X-Name-First: Li Choy
Author-X-Name-Last: Chong
Title: Dilemma of sustainable lending
Abstract:
This exploratory study investigates how
banks, engaged in sustainable lending, monitor the performance of small
and medium entrepreneur (SME) borrowers to be environmentally and socially
responsible throughout the life of the loan. We focus on domestic banks
that have adopted sustainable lending in their commercial lending
activities to SMEs. A phenomenological inquiry into the lived experiences
of four bankers based in Europe and one banker in North America revealed
the lack of formal performance measurement systems to monitor compliance
with sustainability requirements. We identify that banks resorted to the
use of storytelling to report on the performance of their sustainable
lending activities. The study concludes with two recommendations for
banks. First, banks could avail of the services of external consultants
who specialize in the measurement of sustainability activities. Second,
banks could develop internal expertise through training and hiring of
personnel with experience in measuring environmental and social impacts.
Journal: Journal of Sustainable Finance & Investment
Pages: 192-209
Issue: 2
Volume: 4
Year: 2014
Month: 4
X-DOI: 10.1080/20430795.2014.883302
File-URL: http://hdl.handle.net/10.1080/20430795.2014.883302
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:2:p:192-209
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Haigh
Author-X-Name-First: Matthew
Author-X-Name-Last: Haigh
Title: Call for Papers for the Social Finance and Sustainable Finance Stream: The 14th Finance, Risk and Accounting Perspectives Conference Oriel College, University of Oxford 22nd-24th September 2014 Conference pages http://www.acrn.eu/finance
Journal: Journal of Sustainable Finance & Investment
Pages: 210-210
Issue: 2
Volume: 4
Year: 2014
Month: 4
X-DOI: 10.1080/20430795.2014.891968
File-URL: http://hdl.handle.net/10.1080/20430795.2014.891968
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:2:p:210-210
Template-Type: ReDIF-Article 1.0
Author-Name: Magnus Jansson
Author-X-Name-First: Magnus
Author-X-Name-Last: Jansson
Author-Name: Joakim Sandberg
Author-X-Name-First: Joakim
Author-X-Name-Last: Sandberg
Author-Name: Anders Biel
Author-X-Name-First: Anders
Author-X-Name-Last: Biel
Author-Name: Tommy Gärling
Author-X-Name-First: Tommy
Author-X-Name-Last: Gärling
Title: Should pension funds' fiduciary duty be extended to include social, ethical and environmental concerns? A study of beneficiaries' preferences
Abstract:
Many fund managers, lawyers and academics
assume that pension funds' legal responsibility to manage assets in the
best interests of their beneficiaries (their fiduciary duty) rules out
including social, ethical and environmental concerns in investments. A
counter-argument is that beneficiaries' best interests can be interpreted
more broadly to also encompass such concerns. We seek to contribute to
resolving this controversy by measuring preferences for social responsible
investment (SRI) among beneficiaries of pension funds. The data from a
survey questionnaire answered by 1119 future beneficiaries of the Swedish
pension system show that beneficiaries on average prefer their pension
funds to go beyond financial concerns and engage in SRI. Analysing the
determinants of the preferences, we find support for a model including
both financial motives (beliefs about financial risk and returns) and
values-based motives (self-transcendent value priorities). Our results
give unique insights into the psychological drivers of beneficiaries'
preferences that are highly pertinent to present attempts at rethinking
the aims of pension investments.
Journal: Journal of Sustainable Finance & Investment
Pages: 213-229
Issue: 3
Volume: 4
Year: 2014
Month: 7
X-DOI: 10.1080/20430795.2014.928997
File-URL: http://hdl.handle.net/10.1080/20430795.2014.928997
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:3:p:213-229
Template-Type: ReDIF-Article 1.0
Author-Name: John Byrd
Author-X-Name-First: John
Author-X-Name-Last: Byrd
Author-Name: Elizabeth S. Cooperman
Author-X-Name-First: Elizabeth S.
Author-X-Name-Last: Cooperman
Title: Let's talk: an analysis of the "vote vs. negotiated withdrawal" decision for social activist environmental health shareholder resolutions
Abstract:
Social and environmental shareholder
activists engage in a form of corporate social governance by submitting
proxy resolutions for a specific change in corporate behavior deemed to be
harmful to society. Using a unique data-set for environmental health
shareholder resolutions filed by shareholder activists at 70 different
companies during 2006-2011, we examine the success rate of resolutions and
characteristics affecting the "vote vs. negotiated withdrawal" decision.
Supporting a self-interest hypothesis, resolutions targeting specific
consumer/retail companies, with regard to chemicals in products or product
safety issues, are more likely to be negotiated and withdrawn, while firms
with entrenchment-related governance characteristics are more likely to be
voted on. Examining wealth effects, consumer/retail companies with a
resolution vote experience a - 0.38% stock price reaction surrounding the
annual meeting date, resulting in a significant economic average loss of
- $453.5 million.
Journal: Journal of Sustainable Finance & Investment
Pages: 230-248
Issue: 3
Volume: 4
Year: 2014
Month: 7
X-DOI: 10.1080/20430795.2014.928998
File-URL: http://hdl.handle.net/10.1080/20430795.2014.928998
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:3:p:230-248
Template-Type: ReDIF-Article 1.0
Author-Name: Sander Quak
Author-X-Name-First: Sander
Author-X-Name-Last: Quak
Author-Name: Johan Heilbron
Author-X-Name-First: Johan
Author-X-Name-Last: Heilbron
Author-Name: Jessica Meijer
Author-X-Name-First: Jessica
Author-X-Name-Last: Meijer
Title: The rise and spread of sustainable investing in the Netherlands
Abstract:
Sustainable investing (SI) experienced
three phases in the Netherlands from the 1960s until the present. In the
1960s a small niche market emerged against a background of growing
environmental concerns and debates on Western countries' responsibility
for developing countries. This niche market was populated by 'ethical'
investors 'earmarking' their investments for promoting specific social or
environmental causes. The burst of the dot-com bubble and financial
scandals in the early 2000s resulted in the partial deligitimization of
financial practices. With the development of global SI guidelines this
resulted in a changing context for the financial sector which needed to
restore its economic and moral legitimacy. Large retail banks began
offering SI funds while the vanguard of the institutional investors
started to rethink their shareholder responsibility and experimented with
SI methods. This second phase, which meant a redefinition from ethical to
responsible investing, lasted until 2007. A documentary on investments by,
especially, pension funds in companies producing controversial weapons
kicked off the third phase. This was around the start of the recent
financial and economic crisis, which made people lose confidence in the
financial sector on a much larger scale and question financial markets'
legitimacy. This investment scandal triggered institutional investors to
incorporate environmental, social, and governance considerations. This is
justified by claiming that integrating sustainability issues helps to
better manage investment risks, thereby reflecting the standard investment
model of risk-adjusted returns and resulting in a redefinition from
responsible investing to SI. As a result, SI seems to be in the process of
becoming mainstream.
Journal: Journal of Sustainable Finance & Investment
Pages: 249-265
Issue: 3
Volume: 4
Year: 2014
Month: 7
X-DOI: 10.1080/20430795.2014.928999
File-URL: http://hdl.handle.net/10.1080/20430795.2014.928999
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:3:p:249-265
Template-Type: ReDIF-Article 1.0
Author-Name: Rohit Pathania
Author-X-Name-First: Rohit
Author-X-Name-Last: Pathania
Author-Name: Arnab Bose
Author-X-Name-First: Arnab
Author-X-Name-Last: Bose
Title: An analysis of the role of finance in energy transitions
Abstract:
This paper is an enquiry into the role of
finance in energy transitions. The paper provides evidence that finance
and financial innovation were important aspects in every energy
transition. We look at three energy transitions; the transition to the
steam engine, then to that of oil via oil exploration and refining, and
finally of electricity and harnessing water for electricity. It is
interesting to note that at the point of inflexion of these energy
transitions financial innovations were at their heart. It can also be
noted that though scientific discoveries are important and without them no
transition was possible; but scientific discoveries were always
accompanied by innovations in finance to make the energy transition
possible. The paper finds two types of financial innovations, named in the
paper as systems dependent and systems independent. The paper concludes by
enquiring about the transition to sustainable energy and suggests that
financial innovations like financial gradients and real options may be
what the latest transition needs.
Journal: Journal of Sustainable Finance & Investment
Pages: 266-271
Issue: 3
Volume: 4
Year: 2014
Month: 7
X-DOI: 10.1080/20430795.2014.929000
File-URL: http://hdl.handle.net/10.1080/20430795.2014.929000
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:3:p:266-271
Template-Type: ReDIF-Article 1.0
Author-Name: Jatin Nathwani
Author-X-Name-First: Jatin
Author-X-Name-Last: Nathwani
Author-Name: Artie W. Ng
Author-X-Name-First: Artie W.
Author-X-Name-Last: Ng
Title: Investing in the next generation of infrastructure for sustainable energy in Canada
Abstract:
Canada's natural endowment of abundant
energy resources, both fossil fuels and renewables, provide a level of
energy security and supplies that are an envy of many nations. However,
corporations continue to focus on investing in Canada's infrastructure for
the oil and gas export opportunities to the USA and the rest of the world.
We argue that low-carbon energy resources, namely hydro, nuclear,
geothermal, wind, solar and ocean energy, ought to be invested on a much
larger scale to not only enhance security of supply but also to reduce the
role of fossil fuels in a measured way over a 50-70 year time frame. To do
so, adequate energy policy for the nation should be formulated in order to
induce market financing infrastructure for sustainable energy resources to
compete and export across the border.
Journal: Journal of Sustainable Finance & Investment
Pages: 272-279
Issue: 3
Volume: 4
Year: 2014
Month: 7
X-DOI: 10.1080/20430795.2014.929001
File-URL: http://hdl.handle.net/10.1080/20430795.2014.929001
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:3:p:272-279
Template-Type: ReDIF-Article 1.0
Author-Name: Richard A. Michelfelder
Author-X-Name-First: Richard A.
Author-X-Name-Last: Michelfelder
Title: Asset characteristics of solar renewable energy certificates: market solution to encourage environmental sustainability
Abstract:
The solar renewable energy certificate
(SREC) or green certificate outside the USA is a renewable electricity
production subsidy and an environmental financial asset created by
governments' policy-makers. They are meant to be a Pigouvian market-based
solution to monetize social externalities in electricity use and
production investment decisions. The asset pricing characteristics of the
SREC market is compared with other traditional financial assets to
understand the market for environmental assets. Traders of SRECs are the
creators of SRECs, the owners or developers of photovoltaic projects that
sell SRECs, or buyers, electric utilities that need SRECs to meet their
renewable portfolio standard requirements. This creates a thin market and
potential problems for efficient price discovery, liquidity and market
manipulation. The contribution of this investigation is to increase the
understanding of the asset characteristics of SRECs and potentially lead
to a more liquid and efficient market and a more socially beneficial
allocation of capital to solar electricity production.
Journal: Journal of Sustainable Finance & Investment
Pages: 280-296
Issue: 3
Volume: 4
Year: 2014
Month: 7
X-DOI: 10.1080/20430795.2014.946463
File-URL: http://hdl.handle.net/10.1080/20430795.2014.946463
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:3:p:280-296
Template-Type: ReDIF-Article 1.0
Author-Name: Cary Krosinsky
Author-X-Name-First: Cary
Author-X-Name-Last: Krosinsky
Title: The long and necessary death of socially responsible investing
Journal: Journal of Sustainable Finance & Investment
Pages: 297-298
Issue: 3
Volume: 4
Year: 2014
Month: 7
X-DOI: 10.1080/20430795.2014.946464
File-URL: http://hdl.handle.net/10.1080/20430795.2014.946464
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:3:p:297-298
Template-Type: ReDIF-Article 1.0
Author-Name: Gordon L. Clark
Author-X-Name-First: Gordon L.
Author-X-Name-Last: Clark
Title: Information, knowledge, and investing in offshore financial markets
Abstract:
Financial markets are awash with information. For traders, information is
an essential ingredient in producing investment returns given the shifting
boundary between risk and uncertainty. Financial institutions face a more
complex problem: producing returns requires processing market information
in an ever changing environment, while mobilising the judgement of their
employees so as to realise return objectives. This paper explains the
significance of these issues for the global financial services industry,
and the challenges encountered when institutions seek returns in offshore
financial markets. Distinctions are made between information and
knowledge, and are applied to domains where time and space conspire to
discount the value of inherited decision rules and institutional
practices. A framework is presented for understanding the relationship
between risk and uncertainty, a typology is suggested linking information
and knowledge in financial markets, and these frameworks are combined so
as to better understand the challenges facing large financial institutions
when extending their investments to offshore markets. In conclusion,
implications are drawn for sustainable finance and investment.
Journal: Journal of Sustainable Finance & Investment
Pages: 299-320
Issue: 4
Volume: 4
Year: 2014
Month: 10
X-DOI: 10.1080/20430795.2014.980656
File-URL: http://hdl.handle.net/10.1080/20430795.2014.980656
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:4:p:299-320
Template-Type: ReDIF-Article 1.0
Author-Name: Tim Benijts
Author-X-Name-First: Tim
Author-X-Name-Last: Benijts
Title: Socially responsible investment and financial institution's response to secondary stakeholder requests
Abstract:
In order to gain influence over firms, secondary stakeholders can opt for
socially responsible investment (SRI) - an investment approach that uses
both financial and non-financial criteria to determine which assets to
purchase [Guay, T., J. P. Doh, and G. Sinclair. 2004. "Non-governmental
Organizations, Shareholder Activism and Socially Responsible Investments:
Ethical, Strategic and Governance Implications." Journal of
Business Ethics 52 (1): 125-139]. In this article, we argue that
SRI, besides a tactic to gain influence over firms, can also be seen as a
financial institution's characteristic on the basis of which secondary
stakeholders can decide to (not) target a financial institution. It is
theorized - based on organizational legitimacy theory - that a financial
institution's supply of socially responsible financial products (proxied
by the number of products and/or assets/deposits managed) signals a
financial institution's likelihood of response to specific stakeholder
requests. This relationship is theorized to be positive: the more
important SRI is to a financial institution, the higher the likelihood of
response to such requests.
Journal: Journal of Sustainable Finance & Investment
Pages: 321-336
Issue: 4
Volume: 4
Year: 2014
Month: 10
X-DOI: 10.1080/20430795.2014.946465
File-URL: http://hdl.handle.net/10.1080/20430795.2014.946465
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:4:p:321-336
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Schröder
Author-X-Name-First: Michael
Author-X-Name-Last: Schröder
Title: Financial effects of corporate social responsibility: a literature review
Abstract:
This literature overview focuses on the latest results of academic
research on the performance of socially responsible investments and the
links between corporate social responsibility (CSR) and financing costs of
companies. It covers not only the results for stocks (which are in the
focus of research so far) but also the effects of CSR on bonds, loans, and
default risk as well as "green" real estate.The combined results on these
different asset classes and financing instruments lead to a comprehensive
up-to-date picture on the relationships between CSR activities of
companies and their financing costs. It is shown that the costs for equity
and debt capital are linked to CSR ratings with the consequence that
companies with "good" CSR ratings exhibit on average lower financing
costs. Thus, an (un-)ethical behavior of companies as defined by CSR
ratings seems to be significantly related to the costs companies are
facing.
Journal: Journal of Sustainable Finance & Investment
Pages: 337-350
Issue: 4
Volume: 4
Year: 2014
Month: 10
X-DOI: 10.1080/20430795.2014.971096
File-URL: http://hdl.handle.net/10.1080/20430795.2014.971096
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:4:p:337-350
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Cadman
Author-X-Name-First: Timothy
Author-X-Name-Last: Cadman
Title: Climate finance in an age of uncertainty
Abstract:
There was a great deal of uncertainty in the discussions held in Bonn,
Germany, 4-14 June in preparation for the UN Framework Convention on
Climate Change negotiations later this year in Lima, and in Paris in 2015.
This hinged upon what will be contained in the new institutional
arrangements for reducing emissions, to be developed in the second
commitment period, which replaces the Kyoto Protocol. At the time of
writing, it is not yet clear exactly what mechanisms will be put in place.
The old architecture favoured market-driven mechanisms, but an ongoing
alternative viewpoint that favours non-market-based approaches gained some
traction, notably in discussions relating to REDD+. What is not clear is
whether this is because developing countries object philosophically to the
use of capital markets to stimulate emission reduction through forests, or
because the current price of carbon is so low at present. There was also a
considerable degree of jockeying for power regarding future funding
mechanisms within the next commitment period. The Global Environment
Facility has previously played a key role in managing, channelling, and
disbursing developed country donor contributions via a multitude of funds,
to developing countries. The Green Climate Fund, a product of the
Conference of Parties 16 in Cancun (2010), is now likely to be the lead
fund for climate action. It is difficult to tell if these developments
will contribute anything substantive enough to reduce emissions by the
necessary amount required to avoid dangerous human-induced climate change.
Journal: Journal of Sustainable Finance & Investment
Pages: 351-356
Issue: 4
Volume: 4
Year: 2014
Month: 10
X-DOI: 10.1080/20430795.2014.971097
File-URL: http://hdl.handle.net/10.1080/20430795.2014.971097
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:4:p:351-356
Template-Type: ReDIF-Article 1.0
Author-Name: Adam D. Dixon
Author-X-Name-First: Adam D.
Author-X-Name-Last: Dixon
Author-Name: Ashby H.B. Monk
Author-X-Name-First: Ashby H.B.
Author-X-Name-Last: Monk
Title: Financializing development: toward a sympathetic critique of sovereign development funds
Abstract:
In this paper, we unpack the scope and possibilities of sovereign
development funds (SDFs) in different forms and under different
political-cum-institutional conditions as a policy tool
supporting economic growth and development, particularly in developing
countries. Defining what the purpose should be and what is possible is
complicated by a number of factors. The form of government of the
sovereign sponsor and the significance of public legitimacy may help or
hinder different types of investment mandates. Moreover, different
investment mandates and their relative sophistication require
organizational capabilities and expertise that are often not available
locally or are insufficiently developed, such that the implementation of
certain investment mandates is constrained and/or too costly. The purpose
and the design possibilities of a SDF are, ultimately, contingent on local
conditions, resources, and the essential developmental needs of the
country and its population.
Journal: Journal of Sustainable Finance & Investment
Pages: 357-371
Issue: 4
Volume: 4
Year: 2014
Month: 10
X-DOI: 10.1080/20430795.2014.980717
File-URL: http://hdl.handle.net/10.1080/20430795.2014.980717
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Handle: RePEc:taf:jsustf:v:4:y:2014:i:4:p:357-371
Template-Type: ReDIF-Article 1.0
Author-Name: Olaf Weber
Author-X-Name-First: Olaf
Author-X-Name-Last: Weber
Author-Name: Asadul Hoque
Author-X-Name-First: Asadul
Author-X-Name-Last: Hoque
Author-Name: Mohammad Ayub Islam
Author-X-Name-First: Mohammad
Author-X-Name-Last: Ayub Islam
Title: Incorporating environmental criteria into credit risk management in Bangladeshi banks
Abstract:
Does the integration of environmental, social and sustainability criteria
in commercial credit risk assessment processes create a benefit for
lenders and does it improve the prognostic validity of the credit risk
prediction? Some analyses have reported that a correlation exists between
commercial borrowers' sustainability performance and credit risks. We
analyzed the role that criteria pertaining to sustainability and
environmental orientation play in the commercial credit risk management
process in Bangladeshi banks. Our results suggest that sustainability
criteria improve the prognostic validity of the credit rating process. We
conclude that the sustainability a firm demonstrates influences its
creditworthiness as part of its financial performance. Consequently,
lenders will benefit from implementing credit risk assessment models that
integrate sustainability risks. By taking sustainability issues into
account, banks will be able to avoid credit defaults on the one hand and
to channel commercial loans to sustainability leaders on the other hand.
Journal: Journal of Sustainable Finance & Investment
Pages: 1-15
Issue: 1-2
Volume: 5
Year: 2015
Month: 4
X-DOI: 10.1080/20430795.2015.1008736
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1008736
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:1-2:p:1-15
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Rong Ang
Author-X-Name-First: Wei Rong
Author-X-Name-Last: Ang
Title: Sustainable investment in Korea does not catch a cold when the United States sneezes
Abstract:
We analyse the socially responsible investment (SRI) performance in Korea
over the period January 2006 to April 2014. Our analysis shows that
sustainable investment portfolio, represented by Dow Jones Sustainability
Index Korea, is ranked higher than most of the conventional portfolios in
Korea. We also find that there is no significant effect of the 2008 global
financial crisis on the sustainable investment return and volatility and
US policy uncertainty does not affect the return as well. Generally, we
find relative stability during crisis and non-crisis periods. We may also
conclude that by decoupling sustainable investment in Korea from US market
system, "Korea does not catch a cold when the United States sneezes". In
other words, SRI in Korea can be an alternative investment opportunity for
investors to consider for international diversification purpose.
Journal: Journal of Sustainable Finance & Investment
Pages: 16-26
Issue: 1-2
Volume: 5
Year: 2015
Month: 4
X-DOI: 10.1080/20430795.2015.1042737
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1042737
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:1-2:p:16-26
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt Ramin
Author-X-Name-First: Kurt
Author-X-Name-Last: Ramin
Author-Name: Stephen Lew
Author-X-Name-First: Stephen
Author-X-Name-Last: Lew
Title: A model for integrated capital disclosure and performance reporting: separating objects from value
Abstract:
This paper introduces a conceptual model for integrated capital disclosure
(ICD) and performance reporting. The paper details the design of a
simplified key element taxonomy that highlights current and forecasted
product, people and physical infrastructure (3Ps) resources, transactions
and activities as carriers and drivers of intellectual capital (IC). We
introduce object recognition and tracking technologies and suggest to
separate accounting object definitions from valuation and measurement
methods. Each reporting entity or organization has to report and forecast
cash flows and accounting estimates, and should disclose potential IC,
including risk assessment, based on the key element taxonomy. Financial
capital is reconciled in a separate schedule. The taxonomy matrix allows
aligned risk and integrated reporting assessments to be more focused,
thereby reducing duplication in reporting. The matrix also codifies and
integrates financial and sustainability (non-financial) reporting
disclosures. Further studies should determine whether the proposed
concepts lead to better use and understanding of information. There is a
vacuum in assessing the performance of entities on the basis of total
information made up of financial and non-financial reporting. Financial,
sustainability, IC, tax and statistics reports, and other data are
difficult to understand for those who are not industry experts. The ICD
model combines and relates information. The suggested new concepts and
paradigm changes are designed to reduce this complexity, and should result
in more focused comparisons between and within industries.
Journal: Journal of Sustainable Finance & Investment
Pages: 27-47
Issue: 1-2
Volume: 5
Year: 2015
Month: 4
X-DOI: 10.1080/20430795.2015.1042829
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1042829
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:1-2:p:27-47
Template-Type: ReDIF-Article 1.0
Author-Name: Richard A. Michelfelder
Author-X-Name-First: Richard A.
Author-X-Name-Last: Michelfelder
Title: Electric utility regulation and investment in green energy resources
Abstract:
Electric utility investment in end-use efficiency and renewable energy
resources is examined with current forms of Pigouvian taxes and subsidies
that encourage investment in green energy resources. A model of a
rate-of-return-regulated firm considers the impacts of policies on social
optimality. It shows that cap-and-trade/floor-and-trade forms of Pigouvian
taxes and subsidies cause electric utilities to (over) underinvest in
conventional generation and (under) overinvest in green resources when the
allowed rate of return (is above) equals the cost of capital. Therefore,
these forms of taxes and subsidies combined with rate base rate-of-return
regulation result in suboptimal investment in one type of asset or another
regardless of the level of return exogenously set by regulators.
Therefore, public utility investment is always suboptimal, one way or
another. The form of regulation is empirically tested from stock price
signals and observed by lack of investment in the electric power
infrastructure and too much investment in green resources that will not
meet renewable portfolio standards and the demand for electric services.
Journal: Journal of Sustainable Finance & Investment
Pages: 48-64
Issue: 1-2
Volume: 5
Year: 2015
Month: 4
X-DOI: 10.1080/20430795.2015.1050950
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1050950
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:1-2:p:48-64
Template-Type: ReDIF-Article 1.0
Author-Name: Nikodem Szumilo
Author-X-Name-First: Nikodem
Author-X-Name-Last: Szumilo
Author-Name: Franz Fuerst
Author-X-Name-First: Franz
Author-X-Name-Last: Fuerst
Title: Who captures the "green value" in the US office market?
Abstract:
This research examines the effects of energy efficiency certification
levels on office rental rates and lease structures to determine whether
any cost benefits of green buildings are captured by landlords or remain,
at least partially, with the tenant. To this aim, our analysis applies the
largest and most detailed data set to date, a panel of 14,283 US office
properties. Using fixed-effects and dynamic Arellano-Bond frameworks
allows us to estimate the differential rental price impact of Energy Star
certification both across and within
buildings. The general results indicate that buildings with higher levels
of energy efficiency achieve higher gross rents allowing landlords to
benefit from the premium. However, improved energy efficiency over time is
also linked to a slower growth of rental prices as some of the benefit is
passed onto tenants. Interestingly, the cost-saving benefit of energy
efficiency appears to have the strongest impact on rental rates.
Journal: Journal of Sustainable Finance & Investment
Pages: 65-84
Issue: 1-2
Volume: 5
Year: 2015
Month: 4
X-DOI: 10.1080/20430795.2015.1054336
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1054336
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:1-2:p:65-84
Template-Type: ReDIF-Article 1.0
Author-Name: Miwako Nitani
Author-X-Name-First: Miwako
Author-X-Name-Last: Nitani
Author-Name: Brian Carriere
Author-X-Name-First: Brian
Author-X-Name-Last: Carriere
Author-Name: Adam Bleackley
Author-X-Name-First: Adam
Author-X-Name-Last: Bleackley
Title: Recognizing corporate citizenship: market reactions
Abstract:
This research addresses whether corporations take on environmental, social
and governance (ESG) integration at shareholders' expense or whether ESG
integration is a mechanism to increase shareholder value. It therefore
investigates stock market reactions to recognition of good (or bad)
corporate citizens using additions to (removals from) the Jantzi Social
Index as a signal of good (bad) corporate citizenship. The Jantzi Index is
a 60-security market index for which inclusion is based on ESG-related
criteria. The study measures stock return dynamics around the announcement
date of stock additions to/removals from the index. Accordingly, the
findings are supportive of the view that ESG integration is a
value-enhancing activity for shareholders and that the market therefore
acknowledges socially responsible corporate citizens in a favourable way.
It is worth noting that these findings are situated in the context of
well-established capital markets comprising generally well-informed
investors and are robust to alternative models of stock return-generating
functions.
Journal: Journal of Sustainable Finance & Investment
Pages: 85-102
Issue: 1-2
Volume: 5
Year: 2015
Month: 4
X-DOI: 10.1080/20430795.2015.1054775
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1054775
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:1-2:p:85-102
Template-Type: ReDIF-Article 1.0
Author-Name: Wolfgang Spiess-Knafl
Author-X-Name-First: Wolfgang
Author-X-Name-Last: Spiess-Knafl
Author-Name: Jessica Aschari-Lincoln
Author-X-Name-First: Jessica
Author-X-Name-Last: Aschari-Lincoln
Title: Understanding mechanisms in the social investment market: what are venture philanthropy funds financing and how?
Abstract:
In recent years, a social investment market with specialized
intermediaries and social investors has developed with an increasing
amount of available capital. This paper focuses on venture philanthropy
funds as new financial intermediaries and studies some characteristics of
the investees. The empirical analysis is based on a unique data set of 342
social investments from five continents over the last 17 years. Three main
findings are notable. First, the investees' organizational and beneficiary
characteristics determine their access to financial resources. Second, a
model including investees' organizational and beneficiary characteristics
strongly predicts grant versus commercial financing outcome. Third, the
venture capital nature of venture philanthropy funds can be recognized
from their financing instrument decision-making. Based on these findings,
this paper contributes to the emerging field of social investment.
Journal: Journal of Sustainable Finance & Investment
Pages: 103-120
Issue: 3
Volume: 5
Year: 2015
Month: 7
X-DOI: 10.1080/20430795.2015.1060187
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1060187
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:3:p:103-120
Template-Type: ReDIF-Article 1.0
Author-Name: Ahsin Shahid
Author-X-Name-First: Ahsin
Author-X-Name-Last: Shahid
Author-Name: Hibba Saeed
Author-X-Name-First: Hibba
Author-X-Name-Last: Saeed
Author-Name: S. Muhammad Ali Tirmizi
Author-X-Name-First: S. Muhammad Ali
Author-X-Name-Last: Tirmizi
Title: Economic development and banking sector growth in Pakistan
Abstract:
This study empirically analyzes the financial and economic development in
Pakistan with reference to banking sector. Time series data of Pakistani
banks from 1980 to 2012 have been employed. Statistical analysis including
Augmented Dickey-Fuller, Johansen co-integration, ordinary least square
(OLS) regression, and Granger causality tests have been applied on the
data relating four indicators (i.e. Broad Money (M2); Domestic
Credit to Private Sector; Domestic Credit to by Banking Sector; and Banks
Deposit Liabilities (BDL) - all taken as percentage of gross domestic
product] which measured the level of financial development (FD)
contributed by banking sector. The results revealed that a positive and
statistically significant relationship exists between FD and economic
growth. However, BDL are positive but statistically insignificant, and
M2 is negative and statistically insignificant. Moreover,
unidirectional and bidirectional causality have been found between the
variables. Hence, there is a dire need of sound banking sector to ensure
long-term sustainable economic growth that could be achieved if the
Government takes concrete measures to reduce all kinds of deficits and
borrowings that are the major causes of crowding-out private investment.
Journal: Journal of Sustainable Finance & Investment
Pages: 121-135
Issue: 3
Volume: 5
Year: 2015
Month: 7
X-DOI: 10.1080/20430795.2015.1063976
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1063976
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:3:p:121-135
Template-Type: ReDIF-Article 1.0
Author-Name: Neil Reeder
Author-X-Name-First: Neil
Author-X-Name-Last: Reeder
Author-Name: Andrea Colantonio
Author-X-Name-First: Andrea
Author-X-Name-Last: Colantonio
Author-Name: John Loder
Author-X-Name-First: John
Author-X-Name-Last: Loder
Author-Name: Gemma Rocyn Jones
Author-X-Name-First: Gemma
Author-X-Name-Last: Rocyn Jones
Title: Measuring impact in impact investing: an analysis of the predominant strength that is also its greatest weakness
Abstract:
Compared to other forms of socially responsible investment, a prominent
feature of impact investing is measurement of the social and environmental
return (SER) that it aims to generate. Much effort has been undertaken to
develop such measurements, but progress is patchy. This paper contains an
overview of first principles, making explicit the subjective
interpretation of SER by investors and outlining tensions around breadth
of coverage; rigour in attribution of impact versus practicality and
flexibility; and the very concept of 'a return'. Interviews with impact
investors covering environmental issues, social enterprises, microfinance
firms, and Social Impact Bond contracts highlight three distinctive sets
of practice - 'System building', 'Case by case assessment', and
'Intermediate outcome perspectives' - as to whose gains should be counted,
how to structure assessment, and what forms of assessment are viewed as
legitimate. Of these, 'System building' approaches appear to be advancing
most, but the challenges that it faces will be hard to overcome.
Journal: Journal of Sustainable Finance & Investment
Pages: 136-154
Issue: 3
Volume: 5
Year: 2015
Month: 7
X-DOI: 10.1080/20430795.2015.1063977
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1063977
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:3:p:136-154
Template-Type: ReDIF-Article 1.0
Author-Name: Susanne Baumann
Author-X-Name-First: Susanne
Author-X-Name-Last: Baumann
Author-Name: Othmar M Lehner
Author-X-Name-First: Othmar M
Author-X-Name-Last: Lehner
Author-Name: Heimo Losbichler
Author-X-Name-First: Heimo
Author-X-Name-Last: Losbichler
Title: A push-and-pull factor model for environmental management accounting: a contingency perspective
Abstract:
In order to further develop the theoretical basis of environmental
management accounting (EMA), a contingency perspective is used in this
paper to explain the initial implementation and design of EMA in firms,
based on internalities as well as externalities. Nine variables have been
identified to impact EMA either via push or pull mechanisms. A integrative
model of these pull and push factors is the outcome of two large-scale
triangulated case studies that were conducted within the global companies
Borealis Group and Puma SE based on exemplary cases. Interviews with
sustainability representatives and a discourse analysis of related press
and media releases are included for triangulation. All the collected data
were coded into nine a-priori variables, previously identified in a
meta-analysis of existing literature. The following factors have a push
influence on EMA: location, interdependence, availability of resources,
ownership and control as well as uncertainty. In contrast, only three
variables pull EMA into an organisation: the size, history and the
organisation's strategy.
Journal: Journal of Sustainable Finance & Investment
Pages: 155-177
Issue: 3
Volume: 5
Year: 2015
Month: 7
X-DOI: 10.1080/20430795.2015.1100036
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1100036
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:3:p:155-177
Template-Type: ReDIF-Article 1.0
Author-Name: Maike van Dijk-de Groot
Author-X-Name-First: Maike
Author-X-Name-Last: van Dijk-de Groot
Author-Name: Andre H.J. Nijhof
Author-X-Name-First: Andre H.J.
Author-X-Name-Last: Nijhof
Title: Socially Responsible Investment Funds: a review of research priorities and strategic options
Abstract:
This is the first literature review on Socially Responsible Investment
(SRI) funds. Although SRI funds flourish, we know very little about these
investment vehicles. This article reviews academic literature on SRI funds
published during the past 25 years. It discusses the current state of
theoretical research on SRI funds and identifies future research
opportunities by analysing the characteristics, contents and
methodological aspects of the literature and identifying research
priorities and strategic options. Current research on SRI funds, it is
shown, typically departs from a financial perspective and focuses
predominantly on financial performance. In addition, most research is
produced at European and North American universities, and there is little
attention for social performance or discussion about the principles
underlying SRI funds. We therefore argue that important future research
opportunities exist with regard to the promise of SRI funds to attain both
their financial and social goals.
Journal: Journal of Sustainable Finance & Investment
Pages: 178-204
Issue: 3
Volume: 5
Year: 2015
Month: 7
X-DOI: 10.1080/20430795.2015.1100035
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1100035
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:3:p:178-204
Template-Type: ReDIF-Article 1.0
Author-Name: Kira Shevchenko
Author-X-Name-First: Kira
Author-X-Name-Last: Shevchenko
Author-Name: Richard McManus
Author-X-Name-First: Richard
Author-X-Name-Last: McManus
Author-Name: Janet Haddock-Fraser
Author-X-Name-First: Janet
Author-X-Name-Last: Haddock-Fraser
Title: UK pension sustainability and fund manager governance: agent duties to the principal
Abstract:
Sustainable investing includes the application of non-financial
(Environmental, Social and Governance (ESG)) criteria to asset selection
in institutional investor portfolios [Capelle-Blancard, G., and S. Monjon.
2011. “Trends in the Literature on Socially Responsible Investment:
Looking for the Keys Under the Lamppost.” Business Ethics:
A European Review 21(3): 239--250]. The article explores the
implications for applying ESG screening to the
institutional investors making the asset selections. Institutional
investors are a heterogeneous group of investors, with fund managers
specifically being some of the largest listed organisations globally
[Ingley, C. B., and N. T. van der Walt. 2004. “Corporate
Governance, Institutional Investors and Conflicts of Interest.”
Corporate Governance 12(4): 534--553]. Whether their own
corporate management duties to fiduciary governance (the G in ESG)
benefiting their shareholders has any material impact on the financial
returns outcomes of the pension asset management contract, and
specifically whether there is a fiduciary conflict favouring of the
exclusive best interest of fund management shareholders is the question
addressed by the paper.
Journal: Journal of Sustainable Finance & Investment
Pages: 205-209
Issue: 4
Volume: 5
Year: 2015
Month: 10
X-DOI: 10.1080/20430795.2015.1106209
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1106209
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:4:p:205-209
Template-Type: ReDIF-Article 1.0
Author-Name: Gunnar Friede
Author-X-Name-First: Gunnar
Author-X-Name-Last: Friede
Author-Name: Timo Busch
Author-X-Name-First: Timo
Author-X-Name-Last: Busch
Author-Name: Alexander Bassen
Author-X-Name-First: Alexander
Author-X-Name-Last: Bassen
Title: ESG and financial performance: aggregated evidence from more than 2000 empirical studies
Abstract:
The search for a relation between environmental, social, and governance
(ESG) criteria and corporate financial performance (CFP) can be traced
back to the beginning of the 1970s. Scholars and investors have published
more than 2000 empirical studies and several review studies on this
relation since then. The largest previous review study analyzes just a
fraction of existing primary studies, making findings difficult to
generalize. Thus, knowledge on the financial effects of ESG criteria
remains fragmented. To overcome this shortcoming, this study extracts all
provided primary and secondary data of previous academic review studies.
Through doing this, the study combines the findings of about 2200
individual studies. Hence, this study is by far the most exhaustive
overview of academic research on this topic and allows for generalizable
statements. The results show that the business case for ESG investing is
empirically very well founded. Roughly 90% of studies find a nonnegative
ESG--CFP relation. More importantly, the large majority of studies reports
positive findings. We highlight that the positive ESG impact on CFP
appears stable over time. Promising results are obtained when
differentiating for portfolio and nonportfolio studies, regions, and young
asset classes for ESG investing such as emerging markets, corporate bonds,
and green real estate.
Journal: Journal of Sustainable Finance & Investment
Pages: 210-233
Issue: 4
Volume: 5
Year: 2015
Month: 10
X-DOI: 10.1080/20430795.2015.1118917
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1118917
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:4:p:210-233
Template-Type: ReDIF-Article 1.0
Author-Name: Aleksandra Szymańska
Author-X-Name-First: Aleksandra
Author-X-Name-Last: Szymańska
Author-Name: Stijn Van Puyvelde
Author-X-Name-First: Stijn
Author-X-Name-Last: Van Puyvelde
Author-Name: Marc Jegers
Author-X-Name-First: Marc
Author-X-Name-Last: Jegers
Title: Capital structure of social purpose companies -- a panel data analysis
Abstract:
This paper examines the determinants of borrowing decisions of social
enterprises. Following the streams of research dealing with for-profit
firms and non-profit organisations, we apply a panel data analysis of 2228
Belgian social purpose companies over the period of 2004--2013. We find
that, in their capital structures, Belgian social purpose companies show a
high dependence on financial determinants such as profitability, nature of
assets, growth opportunities, size, the probability of agency problem and
the previous year's leverage. They also demonstrate a high susceptibility
to activity domain, legal form, region and evolution over time. Our
results are in line with the mainstream literature on both for-profit
organisations and non-profit organisations. We conclude that the capital
structure of social enterprises mixes features of both research streams.
Journal: Journal of Sustainable Finance & Investment
Pages: 234-254
Issue: 4
Volume: 5
Year: 2015
Month: 10
X-DOI: 10.1080/20430795.2015.1089829
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1089829
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Handle: RePEc:taf:jsustf:v:5:y:2015:i:4:p:234-254
Template-Type: ReDIF-Article 1.0
Author-Name: Gregor Dorfleitner
Author-X-Name-First: Gregor
Author-X-Name-Last: Dorfleitner
Author-Name: Gerhard Halbritter
Author-X-Name-First: Gerhard
Author-X-Name-Last: Halbritter
Author-Name: Mai Nguyen
Author-X-Name-First: Mai
Author-X-Name-Last: Nguyen
Title: The risk of social responsibility -- is it systematic?
Abstract:
This paper empirically investigates the risk characteristics of three
environmental, social and corporate governance (ESG) rating concepts
commonly used for assessing corporate social performance (CSP). Analogous
to financial returns, investors are subject to the risk of changes in the
average ESG level of their portfolio which is denoted as ESG risk. This is
of special interest to private and institutional investors focused on a
socially responsible investment strategy. Moreover, a growing number of
financial products, such as mutual funds, include sustainability
objectives. With a large data set including the scores of three important
ESG rating agencies, the paper further examines the convergence of ESG
risk among different rating providers. Applying a regression-based
approach, the paper provides evidence that ESG ratings are subject to a
non-diversifiable risk component. Investors are therefore not able to
fully avoid ESG risk by diversification. Furthermore, the three rating
concepts are not convergent with respect to ESG risk.
Journal: Journal of Sustainable Finance & Investment
Pages: 1-14
Issue: 1
Volume: 6
Year: 2016
Month: 1
X-DOI: 10.1080/20430795.2015.1123993
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1123993
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Template-Type: ReDIF-Article 1.0
Author-Name: Martin Parker
Author-X-Name-First: Martin
Author-X-Name-Last: Parker
Author-Name: Peter Guthrie
Author-X-Name-First: Peter
Author-X-Name-Last: Guthrie
Title: Crossing the energy efficiency chasm: an assessment of the barriers to institutional investment at scale, a UK perspective
Abstract:
Significant savings in CO2 can be won from fabric upgrades, and
improved forms of heating. An increase in the number of building retrofits
and installations of energy efficient plant such as biomass boilers or
combined cooling, heating and power plants must be the aim if the UK is
serious in meeting its commitment to CO2 reduction at both the
domestic and EU level. A way of achieving this increase, which will need
to be significant, would be to tap into the vast funds under management by
institutional investors who are required to invest those funds to optimise
its monetary return, taking into account the level of risk. The aim of the
research is to identify the enabling conditions that would need to exist
to attract institutional investment in energy efficiency at scale. The UK
Green Investment Bank (GIB) has invested £50 million into three
energy efficiency funds, requiring each fund manager to match the amount
by attracting investment from institutional investors. It is these funds
that have been analysed as a single GIB case study. Embedded units of
analysis are on two levels with the individual funds being the first and
the institutional investors investing in those funds as the second. The
early findings of the research reported here indicate that the emerging
key enabling conditions that would make energy efficiency an attractive
proposition are (i) the way energy efficiency investments are classified,
(ii) the contractual structure of the individual transactions made by the
funds and (iii) the experience and familiarity of the fund manager.
Journal: Journal of Sustainable Finance & Investment
Pages: 15-37
Issue: 1
Volume: 6
Year: 2016
Month: 1
X-DOI: 10.1080/20430795.2016.1159650
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1159650
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Template-Type: ReDIF-Article 1.0
Author-Name: Jesu Raju Thomas
Author-X-Name-First: Jesu Raju
Author-X-Name-Last: Thomas
Author-Name: Jyothi Kumar
Author-X-Name-First: Jyothi
Author-X-Name-Last: Kumar
Title: Social performance and sustainability of Indian microfinance institutions: an interrogation
Abstract:
This paper has come forward from the research proposal to understand the
effect of social performance on the sustainability of microfinance
institutions. It has been revealed that the conventional method of
assessment of financial institutions is not applicable to the microfinance
sector. Performance measurement of microfinance institutions has to be
different from that of other financial institutions because of the social
aspects involved besides profitability. Social performance has now become
part of microfinance business along with business sustainability. Our
whole study course is entitled “Effect of social performance on the
sustainability of microfinance institutions.” In this paper, we
elucidate the topic, find the underrepresented research areas and
formulate a research hypothesis for understanding the relationship between
social performance and the sustainability of microfinance institutions.
Journal: Journal of Sustainable Finance & Investment
Pages: 38-50
Issue: 1
Volume: 6
Year: 2016
Month: 1
X-DOI: 10.1080/20430795.2015.1124237
File-URL: http://hdl.handle.net/10.1080/20430795.2015.1124237
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:1:p:38-50
Template-Type: ReDIF-Article 1.0
Author-Name: Evan Hamman
Author-X-Name-First: Evan
Author-X-Name-Last: Hamman
Title: The influence of environmental NGOs on project finance: a case study of activism, development and Australia’s Great Barrier Reef
Abstract:
Project financiers often influence not only the standards against which a
project is managed, but also whether the project goes ahead at all.
Non-government organizations (NGOs) are acutely aware of the leverage that
project financiers possess. In today’s media-driven world, banks
are especially sensitive to public opinion and bad press. Perception and
reputation are important. In Australia, we have seen this play out with
several of the world’s biggest financiers refusing to fund projects
which might impact the Great Barrier Reef. In this paper, I explore some
of those decisions and the influence of NGOs on the project finance
industry. My aim is to better understand the context in which certain
financial decisions are made, including who wields influence and how such
influence is brought to bear. What seems apparent is that while financiers
are powerful gatekeepers of major projects, their influence appears
closely connected to that of civil society.
Journal: Journal of Sustainable Finance & Investment
Pages: 51-66
Issue: 1
Volume: 6
Year: 2016
Month: 1
X-DOI: 10.1080/20430795.2016.1176754
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1176754
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Template-Type: ReDIF-Article 1.0
Author-Name: Hope Johnson
Author-X-Name-First: Hope
Author-X-Name-Last: Johnson
Title: Legitimacy and accountability in the global governance of large-scale agricultural land investments
Abstract:
This article examines the international regulatory framework for
large-scale agricultural land investments (‘LSALIs’).
Population growth, natural resource scarcity, and the financial and food
price crises have made financial actors revise their long-held hesitation
towards direct investment in farmland. Although these investments could
inject much-needed capital into rural areas, LSALIs have been connected
with grievous human rights violations and environmental degradation. This
article finds that the instruments designed to promote socially and
environmentally responsible LSALIs have increasing levels of legitimacy
but lack accountability mechanisms. As a result, the emerging regulatory
framework for LSALIs does not create the balance required between
protecting investors from host state interference and ensuring socially
and environmentally responsible agricultural investments.
Journal: Journal of Sustainable Finance & Investment
Pages: 67-83
Issue: 1
Volume: 6
Year: 2016
Month: 1
X-DOI: 10.1080/20430795.2016.1176755
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1176755
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:1:p:67-83
Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa
Author-X-Name-Last: Awaworyi Churchill
Author-Name: Ahmed Salim Nuhu
Author-X-Name-First: Ahmed Salim
Author-X-Name-Last: Nuhu
Title: What has failed: microfinance or evaluation methods?
Abstract:
This research note reflects on existing research and perspectives on the
efficacy of microfinance as a poverty alleviation tool. We argue that
while the story about the success of microfinance is widespread, its
failure is also well documented at various levels. More importantly,
systematic reviews of the existing research on microfinance performance do
not support the efficacy of microfinance. This suggests that microfinance
has failed. However, these reviews are based on studies that have adopted
widely criticized empirical/quantitative techniques. Thus, in this
research note, we attempt to sensitize both the research community and
policy-makers to reconsider what has really failed in the context of
microfinance, and act accordingly.
Journal: Journal of Sustainable Finance & Investment
Pages: 85-94
Issue: 2
Volume: 6
Year: 2016
Month: 4
X-DOI: 10.1080/20430795.2016.1176424
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1176424
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:2:p:85-94
Template-Type: ReDIF-Article 1.0
Author-Name: Willem Schramade
Author-X-Name-First: Willem
Author-X-Name-Last: Schramade
Title: Integrating ESG into valuation models and investment decisions: the value-driver adjustment approach
Abstract:
True Environmental, Social and Governance issues (ESG) integration means
ESG factors are systematically fed into the valuation models and
investment decisions of analysts and portfolio managers (PMs). However,
most ESG approaches fail to do this. As a result, sustainable investing is
much less an application success than a marketing success. Our
Value-Driver Adjustment approach is different: it ties into traditional
valuation approaches by linking ESG issues to value drivers via their
impact on business models and competitive positions. For equities, the
initial results find that the average target price impact of ESG factors
is 5% overall, and 10% conditional on non-zero adjustments; dispersion is
wide as target price changes ranged from −23% to +71%. The
investment team has experienced a pay-off in terms of more in-depth
analysis of companies, a clearer view on risk and better informed
decisions.
Journal: Journal of Sustainable Finance & Investment
Pages: 95-111
Issue: 2
Volume: 6
Year: 2016
Month: 4
X-DOI: 10.1080/20430795.2016.1176425
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1176425
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:2:p:95-111
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Carolina Rezende de Carvalho Ferreira
Author-X-Name-First: Maria
Author-X-Name-Last: Carolina Rezende de Carvalho Ferreira
Author-Name: Vinicius Amorim Sobreiro
Author-X-Name-First: Vinicius
Author-X-Name-Last: Amorim Sobreiro
Author-Name: Herbert Kimura
Author-X-Name-First: Herbert
Author-X-Name-Last: Kimura
Author-Name: Flavio Luiz de Moraes Barboza
Author-X-Name-First: Flavio
Author-X-Name-Last: Luiz de Moraes Barboza
Title: A systematic review of literature about finance and sustainability
Abstract:
The relationship between finance and environmental sustainability areas
has increasingly been attracting the attention of researchers and
professionals in this field. However, there are not many studies that
gather and systematize the available knowledge about the issue of
financial management and the concern with sustainable development. The
objective of this paper is to present the results or main gaps from a
systematic review of literature about the relationship between finance and
sustainability. We have adapted the methods presented by Lage Junior et
al. [2010. “Variations of the Kanban System: Literature Review and
Classification”.International Journal of Production
Economics 125 (1), 13--21.], Jabbour [2013. Environmental
Training in Organisations: From a Literature Review to a Framework for
Future Research. Resources, Conservation and Recycling
74, 144--155] and Seuring [2013. A Review of Modeling Approaches for
Sustainable Supply Chain Management. Decision Support
Systems 54 (4), 1513--1520], and we then analysed the articles
published between 2011 and 2015 in the main journal of the area, the
Journal of Sustainable Finance & Investment. The method
applied allowed us to identify existing gaps in the literature, such as,
for example, a greater focus on developing countries or the use of empiric
studies with a quantitative approach.
Journal: Journal of Sustainable Finance & Investment
Pages: 112-147
Issue: 2
Volume: 6
Year: 2016
Month: 4
X-DOI: 10.1080/20430795.2016.1177438
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1177438
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Climate change and human rights
Journal: Journal of Sustainable Finance & Investment
Pages: 82-82
Issue: 1
Volume: 2
Year: 2012
X-DOI: 10.1080/20430795.2012.690723
File-URL: http://hdl.handle.net/10.1080/20430795.2012.690723
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:1:p:82-82
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Richardson
Author-X-Name-First: Benjamin
Author-X-Name-Last: Richardson
Title: SRI and extractive industries
Journal: Journal of Sustainable Finance & Investment
Pages: 1-2
Issue: 1
Volume: 2
Year: 2012
X-DOI: 10.1080/20430795.2012.702493
File-URL: http://hdl.handle.net/10.1080/20430795.2012.702493
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:1:p:1-2
Template-Type: ReDIF-Article 1.0
Author-Name: Rupert Allen
Author-X-Name-First: Rupert
Author-X-Name-Last: Allen
Author-Name: Hugues Letourneau
Author-X-Name-First: Hugues
Author-X-Name-Last: Letourneau
Author-Name: Tessa Hebb
Author-X-Name-First: Tessa
Author-X-Name-Last: Hebb
Title: Shareholder engagement in the extractive sector
Abstract: The extractive industry sector has become one of the most prominent areas for shareholder engagement. Given its environmental and social impacts, and global nature, this sector's operations are particularly prone to financially material reputational risks. Large-scale investors and financial analysts concerned with reputational risk as a consequence of insufficient environmental, social and governance (ESG) standards in companies are increasingly turning to shareholder engagement as the preferred and most direct method of implementing, monitoring and advising companies. This article argues that shareholders have some impact on ESG issues with companies in the extractive sector. Their influence stems from the legitimacy they bring to the engagement process, with a high degree of knowledge in the sector and a pragmatic approach that recognizes the incremental pace of change in extractive companies. In this article we build on the work of both Mitchell and others, and Gifford on stakeholder saliency, in order to assess the results of engagement at the level of the firm, with particular reference to the extractive sector. Previous work has focused on the saliency of such engagement at the stakeholder level, with the investor as the unit of analysis. We investigate the impacts and perceptions of shareholder engagement in the extractive sector examining engagements NEI Investments with Canadian mining giant Barrick Gold from 2005 to 2009. We further quantify the results of the engagement using data from a third-party rating agency.
Journal: Journal of Sustainable Finance & Investment
Pages: 3-25
Issue: 1
Volume: 2
Year: 2012
X-DOI: 10.1080/20430795.2012.702495
File-URL: http://hdl.handle.net/10.1080/20430795.2012.702495
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:1:p:3-25
Template-Type: ReDIF-Article 1.0
Author-Name: Jackie Cook
Author-X-Name-First: Jackie
Author-X-Name-Last: Cook
Title: Political action through environmental shareholder resolution filing: applicability to Canadian Oil Sands?
Abstract: Research on the efficacy of social and environmental shareholder resolutions often fails to consider their strategic value in the context of policy outreach. Research on investor-driven governance networks and shareholder activism as a social movement illuminates strategies for organized shareholder coalitions to use a coordinated resolution filing campaign to shape the rules and norms under which business operates. These strategies are examined through qualitative case study analysis of two environmental shareholder campaigns: one organized by Ceres (Coalition for Environmentally Responsible Economies) addressing climate change and the other organized by Investor Environmental Health Network (IEHN) addressing hydraulic fracturing. These case studies show that resolution filing with broad investor appeal and linked to a policy agenda can achieve change beyond targeted companies. Case study insights may contribute to the formation of a Canadian shareholder coalition organized around improved corporate disclosure of Oil Sands risks and improved government monitoring of environmental impacts. Investor groups, mostly Canadian, have framed the environmental and social issues in terms that resonate with the investment community and policy makers. Investor activists in Canada, the US and Europe have filed a number of shareholder resolutions at Oil Sands companies. This marks progress towards investor coalition formation with coordinated shareholder action and a multi-jurisdictional reach.
Journal: Journal of Sustainable Finance & Investment
Pages: 26-43
Issue: 1
Volume: 2
Year: 2012
X-DOI: 10.1080/20430795.2012.702497
File-URL: http://hdl.handle.net/10.1080/20430795.2012.702497
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:1:p:26-43
Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Coumans
Author-X-Name-First: Catherine
Author-X-Name-Last: Coumans
Title: Mining, human rights and the socially responsible investment industry: considering community opposition to shareholder resolutions and implications of collaboration
Abstract: Canadian mining companies regularly face allegations of human rights abuses related to their global operations. This paper considers the human rights implications of responses by Canadian Socially Responsible Investment (SRI) firms to allegations of human rights abuses against mining companies whose shares they own, assess or recommend to clients. Shareholder resolutions are analysed in the light of recent opposition to implications of this corporate social responsibility vehicle by mining affected communities. The paper also explores consequences for community agency in defence of social and environmental values as a result of relationships that evolve between SRI firms and mining companies through collaborative undertakings. These issues are examined in the context of Goldcorp's Marlin mine in Guatemala. The paper concludes that a relationship Goldcorp entered into with SRI firms through a shareholder resolution led to a flawed human rights impact assessment process that was protective of the company's interests but harmed the ability of affected communities to defend their interests.
Journal: Journal of Sustainable Finance & Investment
Pages: 44-63
Issue: 1
Volume: 2
Year: 2012
X-DOI: 10.1080/20430795.2012.702499
File-URL: http://hdl.handle.net/10.1080/20430795.2012.702499
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:1:p:44-63
Template-Type: ReDIF-Article 1.0
Author-Name: Olaf Weber
Author-X-Name-First: Olaf
Author-X-Name-Last: Weber
Author-Name: Yolanda Banks
Author-X-Name-First: Yolanda
Author-X-Name-Last: Banks
Title: Corporate sustainability assessment in financing the extractive sector
Abstract: The role of the extractive sector with regard to sustainable development is discussed controversially. On the one hand, it is argued that the sector's adverse sustainability impacts outweigh its social and economic benefits and therefore the concept of socially responsible investment (SRI) is not applicable to the extractive sector. On the other hand, it is argued that the products from the extractive industries are essential for the world's economy, that the sector contributes to poverty reduction and to economic development, and creates revenues for governments. Based on this discussion, we analysed whether there is a relation between sustainability performance and financial performance in the extractive industry sector, whether Canadian companies from the extractive sector perform differently than companies from other regions, and how a sustainability assessment can be integrated into project finance. Our results suggest that Canadian companies from the extractive sector perform well with respect to their financial return, but that they do not outperform their global peers regarding sustainability. Furthermore, we did not find a strong correlation between sustainability performance and financial performance. Thus, we conclude that socially responsible investors have to pick those companies that perform well regarding both sustainability and financial returns.
Journal: Journal of Sustainable Finance & Investment
Pages: 64-81
Issue: 1
Volume: 2
Year: 2012
X-DOI: 10.1080/20430795.2012.702501
File-URL: http://hdl.handle.net/10.1080/20430795.2012.702501
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:1:p:64-81
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Financialization in an era of globalization
Journal: Journal of Sustainable Finance & Investment
Pages: 83-84
Issue: 1
Volume: 2
Year: 2012
X-DOI: 10.1080/20430795.2012.711974
File-URL: http://hdl.handle.net/10.1080/20430795.2012.711974
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Handle: RePEc:taf:jsustf:v:2:y:2012:i:1:p:83-84
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Seele
Author-X-Name-First: Peter
Author-X-Name-Last: Seele
Author-Name: Marc Chesney
Author-X-Name-First: Marc
Author-X-Name-Last: Chesney
Title: Toxic sustainable companies: a critique on the shortcomings of current corporate sustainability ratings and a definition of ‘financial toxicity’
Abstract:
Building on critical literature on corporate sustainability, we add a perspective thus far only scarcely addressed: the toxicity of financial practices and products generating systemic risk. We start with illustrative examples setting the stage for defining toxic assets and practices as revealed after the onset of the financial crisis precipitated by the collapse of Lehman Brothers. To illustrate corporate toxicity we use the ‘Global 100 Index’ from ‘Corporate Knights’ to show which (mostly financial) scandals or bailout cases were detected at corporations awarded a position in this prestigious sustainability rating. Next, we present examples of toxic products (Naked Credit Default Swaps and structured products) and practices (securitization and ratings). Based on the examples we derive the concept of ‘financial toxicity’ adopted from pharmacology as a meta-criterion, which, as we argue, should be added to the ESG (environment, society, governance) universe as well as to corporate social responsibility and Corporate Sustainability. We define financial toxicity as ‘the degree to which financial products can systematically harm their buyers and, on a large scale, the extent to which these products or financial practices generate systemic risk’. We discuss implications for theory development and the overall credibility of corporate sustainability ratings.
Journal: Journal of Sustainable Finance & Investment
Pages: 139-146
Issue: 2
Volume: 7
Year: 2017
Month: 4
X-DOI: 10.1080/20430795.2016.1238213
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1238213
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:2:p:139-146
Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Boulatoff
Author-X-Name-First: Catherine
Author-X-Name-Last: Boulatoff
Author-Name: Carol Marie Boyer
Author-X-Name-First: Carol Marie
Author-X-Name-Last: Boyer
Title: What is the impact of private and public R&D on clean technology firms’ performance? An international perspective
Abstract:
Research and Development (R&D) has often been cited as key to promote the development of clean technologies in both the short and long runs. Robust economic performance for clean technology firms may occur in countries in which R&D is conducted by governments as well as by businesses. The goal of this paper is to examine how private and public R&D affects firm profitability. Utilizing an international data set of clean technology firms, this study finds performance of clean technology firms to be quite favorable when compared to firms in the Morgan Stanley Capital International World Index. The study examines how different countries perform in these industries. Finally, the impact both corporate and public R&D have had on these firms’ performance is analyzed.
Journal: Journal of Sustainable Finance & Investment
Pages: 147-168
Issue: 2
Volume: 7
Year: 2017
Month: 4
X-DOI: 10.1080/20430795.2016.1251813
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1251813
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:2:p:147-168
Template-Type: ReDIF-Article 1.0
Author-Name: Jemma Green
Author-X-Name-First: Jemma
Author-X-Name-Last: Green
Author-Name: Peter Newman
Author-X-Name-First: Peter
Author-X-Name-Last: Newman
Title: Disruptive innovation, stranded assets and forecasting: the rise and rise of renewable energy
Abstract:
Disruptive innovations are seen to have three core features: 1. They occupy a niche that expands into being a major disruption to a technological system; 2. They grow exponentially and are thus very surprising in their disruption and 3. They create stranded assets. This paper shows how renewable energy with battery storage has the three core features of a disruptive innovation, and predicts that the number of fossil fuel stranded assets are thus likely to increase with the rise of renewable energy generation. Forecasts for the share of renewable capacity in global energy demand will go beyond current estimates, due to the introduction of battery storage and decline in retail renewable electricity prices, and could account for 100% of global energy demand in a number of different scenarios by 2050. We find that renewables and storage can be characterised as disruptive innovations and have the potential to change energy systems dramatically between now and 2050.
Journal: Journal of Sustainable Finance & Investment
Pages: 169-187
Issue: 2
Volume: 7
Year: 2017
Month: 4
X-DOI: 10.1080/20430795.2016.1265410
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1265410
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:2:p:169-187
Template-Type: ReDIF-Article 1.0
Author-Name: Sebsatiaan Lambalk
Author-X-Name-First: Sebsatiaan
Author-X-Name-Last: Lambalk
Author-Name: Frank Jan de Graaf
Author-X-Name-First: Frank Jan
Author-X-Name-Last: de Graaf
Title: Explaining the relationship between firm performance and corporate governance of Dutch non-life insurance companies: Dutch mutual and commercial companies compared
Abstract:
Comparing the performance of mutual and commercial insurance companies in the Netherlands between 2008 and 2012, this paper gives insight into the relationship between performance and corporate governance. We specifically focused on ownership in relationship with diversification and scale within the perspective of financialization. Although regulators promote commercial, publicly-listed companies do not outperform mutual companies. They even have a significantly worse combined ratio and a tendency for higher acquisition costs. Surprisingly, stock listed insurers do not have lower cost ratios, despite the assumed shareholder push. We found evidence for economies of scale in acquisition costs, but not in company costs. The sample covers 125 observations in the Dutch non-life insurance market between 2008 and 2012. The insights are of great relevance for a sector in the midst of a rapid reform, where questions regarding consolidation reign supreme.
Journal: Journal of Sustainable Finance & Investment
Pages: 197-231
Issue: 2
Volume: 7
Year: 2017
Month: 4
X-DOI: 10.1080/20430795.2016.1269520
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1269520
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:2:p:197-231
Template-Type: ReDIF-Article 1.0
Author-Name: Roger C. Y. Chen
Author-X-Name-First: Roger C. Y.
Author-X-Name-Last: Chen
Author-Name: Shih-Wei Hung
Author-X-Name-First: Shih-Wei
Author-X-Name-Last: Hung
Author-Name: Chen-Hsun Lee
Author-X-Name-First: Chen-Hsun
Author-X-Name-Last: Lee
Title: Does corporate value affect the relationship between Corporate Social Responsibility and stock returns?
Abstract:
This study employs the Corporate Social Responsibility (CSR) Index developed by Chen and Hung [2013. “A Study on Corporate Social Responsibility Index and Investment Performance.” GreTai Securities Market 165: 88–97 (in Chinese)] to measure the CSR performance of Taiwanese companies and proposed a CSR efficiency hypothesis that the influence of CSR on stock returns depends on corporate value. According to our findings, CSR activities not only increase the costs of low value firms but also decrease corporate value, exerting a negative effect on stock returns. In contrast, high value firms have a greater capability to implement CSR, and CSR investments can effectively increase their stock prices and market value.
Journal: Journal of Sustainable Finance & Investment
Pages: 188-196
Issue: 2
Volume: 7
Year: 2017
Month: 4
X-DOI: 10.1080/20430795.2016.1272947
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1272947
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:2:p:188-196
Template-Type: ReDIF-Article 1.0
Author-Name: Uzooba Hureem
Author-X-Name-First: Uzooba
Author-X-Name-Last: Hureem
Author-Name: Asima Ihsan
Author-X-Name-First: Asima
Author-X-Name-Last: Ihsan
Author-Name: Mumtaz Anwar Chaudhry
Author-X-Name-First: Mumtaz Anwar
Author-X-Name-Last: Chaudhry
Title: Estimate the economic cost of achieving WASH-related SDGs targets in Punjab
Abstract:
In 2015, Pakistan adopted the Sustainable Development Goals (SDGs) as a national agenda to frame its development plans and socio-economic policies for the next 15 years in order to achieve SDGs. To comprehend this vision; significant resources are dedicated both at national and provincial levels. This paper assesses the financial requirements and gaps to achieve the targets of WASH related SDGs targets in Punjab. The study first reviews the public spending trends in water and sanitation in the last couple of years by the Government of Punjab and then estimates the future financial requirements to meet the targets of WASH by 2030. Linear Regression Analysis (LRA) is used to forecast the financial requirements and based on these estimations financial gap has been computed. This study provides discreet estimates to achieve the WASH SDGs in Punjab and gives policy recommendations to improve the financial governance mechanisms.
Journal: Journal of Sustainable Finance & Investment
Pages: 1-17
Issue: 1
Volume: 10
Year: 2020
Month: 1
X-DOI: 10.1080/20430795.2019.1635427
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:1:p:1-17
Template-Type: ReDIF-Article 1.0
Author-Name: Ismael Karidio
Author-X-Name-First: Ismael
Author-X-Name-Last: Karidio
Author-Name: David Talbot
Author-X-Name-First: David
Author-X-Name-Last: Talbot
Title: Controversy in mining development: a study of the defensive strategies of a mining company
Abstract:
This paper explores the neutralization techniques used by Strateco, a junior uranium mining company, throughout the development of the Matoush project in Quebec, Canada. Based on a content analysis of the company's annual reports, official company press releases, and newspaper articles, this study identifies six techniques used by the company to justify and defend its interests over the course of 10 years. The paper develops a better understanding of the defensive impression management strategies that resource-extraction companies may use to legitimize their positions and persuade concerned parties such as governments, stakeholders and right holders. The study contributes to the literature on neutralization techniques by documenting the employment and evolution of these techniques during controversies over resource extraction. It also highlights changes amongst concerned parties targeted by these techniques over the course of the conflict.
Journal: Journal of Sustainable Finance & Investment
Pages: 18-43
Issue: 1
Volume: 10
Year: 2020
Month: 1
X-DOI: 10.1080/20430795.2019.1657315
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1657315
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:1:p:18-43
Template-Type: ReDIF-Article 1.0
Author-Name: Candace Partridge
Author-X-Name-First: Candace
Author-X-Name-Last: Partridge
Author-Name: Francesca Romana Medda
Author-X-Name-First: Francesca Romana
Author-X-Name-Last: Medda
Title: The evolution of pricing performance of green municipal bonds
Abstract:
In this study, we investigated the performance of US green municipal bond compared with general municipal bonds. The performance of this bond sector was assessed with two different approaches: through the creation and benchmarking of a green municipal bond index; and by looking for differences in yields between green municipal bonds and their conventional counterparts. We found that an index comprised of green muni bonds outperforms the closest equivalent S&P index from 2014 to 2018, and there is a statistically significant green premium (‘greenium’) present in the secondary muni bond market of 5 basis points by 2018. There was no conclusive evidence for the presence of greenium at issue in the primary market, but there are some early signs that this could change. These results are key to encouraging growth in the green municipal bond market, which can help American cities to unlock more capital for more sustainable infrastructure projects.
Journal: Journal of Sustainable Finance & Investment
Pages: 44-64
Issue: 1
Volume: 10
Year: 2020
Month: 1
X-DOI: 10.1080/20430795.2019.1661187
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1661187
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:1:p:44-64
Template-Type: ReDIF-Article 1.0
Author-Name: Matheus Koengkan
Author-X-Name-First: Matheus
Author-X-Name-Last: Koengkan
Author-Name: José Alberto Fuinhas
Author-X-Name-First: José Alberto
Author-X-Name-Last: Fuinhas
Author-Name: Isabel Vieira
Author-X-Name-First: Isabel
Author-X-Name-Last: Vieira
Title: Effects of financial openness on renewable energy investments expansion in Latin American countries
Abstract:
This investigation approaches the effects of financial openness on renewable energy investments. With the purpose of the realisation this study, the installed capacity of renewable energy was used as proxy o renewable energy investments, and ten Latin American countries from 1980 to 2014 were utilised. The empirical results indicated that the per capita economic growth in the short-run has a positive impact on the installed capacity of renewable energy, while the variable financial openness and general government capital stock per capita in the long-run exerts a positive effect. The PVAR model pointed out to a positive impact of per capita economic growth, financial openness, and general government capital stock per capita in the short-run. The Panel Granger causality Wald test revealed the existence of bi-directional causality between the variables of the model.
Journal: Journal of Sustainable Finance & Investment
Pages: 65-82
Issue: 1
Volume: 10
Year: 2020
Month: 1
X-DOI: 10.1080/20430795.2019.1665379
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1665379
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:1:p:65-82
Template-Type: ReDIF-Article 1.0
Author-Name: Khalil Jebran
Author-X-Name-First: Khalil
Author-X-Name-Last: Jebran
Author-Name: Shihua Chen
Author-X-Name-First: Shihua
Author-X-Name-Last: Chen
Title: Examining anomalies in Islamic equity market of Pakistan
Abstract:
The purpose of this study is to investigate the presence of anomalies named; January effect, Islamic calendar effect, Day of the week effect, Time of the month effect, Turn of the month effect and Half of the month effect in an Islamic equity market of Pakistan. This study considered daily data from 30 September 2008 to 30th June 2015. The behavior of the data is tested by using the descriptive statistics method. The Generalized Auto Regressive Conditional Heteroskedasticity Model (GARCH) model is applied to capture the seasonality in returns and volatility in the Islamic equity market. The results of this study highlight certain interesting key findings. The notable findings indicates the absence of prominent January effect and the Ramadan effect. However, this study finds significant Day of the week effect, Turn of the month effect, Time of the month effect and Half of the month effect in the Islamic index. This study suggests that investors would be able to gain abnormal returns, if they would formulate their investment strategies accordingly to the seasonal return patterns observed in this study.
Journal: Journal of Sustainable Finance & Investment
Pages: 275-289
Issue: 3
Volume: 7
Year: 2017
Month: 7
X-DOI: 10.1080/20430795.2017.1289455
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1289455
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:3:p:275-289
Template-Type: ReDIF-Article 1.0
Author-Name: Kalpana Mathur
Author-X-Name-First: Kalpana
Author-X-Name-Last: Mathur
Author-Name: Akanksha Berwa
Author-X-Name-First: Akanksha
Author-X-Name-Last: Berwa
Title: Sustainable competitiveness: redefining the future with technology and innovation
Abstract:
One of the key developments in the global growth space has been the advancement of the concept of sustainability. In the wake of macroscopic social, environmental and other catastrophic effects of progress, sustainability issues have crossed the traditional forte of civil society and governments and have entered the corporate agenda.We have reached a stage of evolution where technology DNA has transformed the way we think, decide and act. Technology is most often abrogated to be the cause of the multi-dimensional crisis. However, this research effort accentuates cutting edge technology as a powerful tool to create the paradigm shift from ‘doing things’ to ‘doing things optimally’ to ‘doing things sustainably’.The paper aims to unveil the complex linkages between Technology, Innovation and Sustainability. For economy level study, the Sustainability Adjusted Global Competitiveness Index of World Economic Forum is statistically compared with Technology Readiness and Innovation levels of 113 nations. For examining the effect at the organizational level, real life evidences are used. These findings are then cohesively gelled together to outline the role of technology and innovation in attaining corporate and global sustainability as well as to further actionable recommendations.The pursuit of technology readiness with innovation can be a potent force to cross the chasm of resource depletion. The challenge is to master the emerging dynamics of ‘Return on Resources’ to leverage them for sustainable growth and competitiveness which promises a bright future for our generations.
Journal: Journal of Sustainable Finance & Investment
Pages: 290-306
Issue: 3
Volume: 7
Year: 2017
Month: 7
X-DOI: 10.1080/20430795.2017.1300855
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1300855
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:3:p:290-306
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Journal of Sustainable Finance & Investment
Pages: 307-307
Issue: 3
Volume: 7
Year: 2017
Month: 7
X-DOI: 10.1080/20430795.2017.1311823
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1311823
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:3:p:307-307
Template-Type: ReDIF-Article 1.0
Author-Name: Delton B. Chen
Author-X-Name-First: Delton B.
Author-X-Name-Last: Chen
Author-Name: Joel van der Beek
Author-X-Name-First: Joel
Author-X-Name-Last: van der Beek
Author-Name: Jonathan Cloud
Author-X-Name-First: Jonathan
Author-X-Name-Last: Cloud
Title: Climate mitigation policy as a system solution: addressing the risk cost of carbon
Abstract:
Global 4C is a new international climate mitigation policy that adopts a risk management framework. Global 4C offers a financial reward for mitigation and aims to internalise a Risk Cost of Carbon (RCC) into the economy. Carbon taxes (i.e. carbon prices) are essential for internalising the Social Cost of Carbon (SCC), however a SCC-RCC duality is inferred with an epistemological method and is supported with a new hypothesis, called the Holistic Market Hypothesis. Based on the inferred SCC-RCC duality, a system of complementary market pricing is proposed as an effective response to emerging climate systemic risk and fat-tailed probability distributions for the Earth's climate sensitivity.The recommended policy instrument is a currency, called Complementary Currencies for Climate Change (4C). 4C should be priced in foreign exchange currency markets (Forex) to mirror the RCC and to incentivise a spectrum of mitigation services, including clean renewable energy and carbon sequestration. A public broadcast message for climate systemic risk should be made each year, in the form of a ‘100-year advance 4C price alert’, which is an assurance of reward prices for carbon mitigation (i.e. the 4C exchange rate) under a Carbon Exchange Standard (CES). The CES is a macro-prudential protocol for central banks to provide collective insurability against climate catastrophe and incentives for socio-ecological co-benefits.
Journal: Journal of Sustainable Finance & Investment
Pages: 233-274
Issue: 3
Volume: 7
Year: 2017
Month: 7
X-DOI: 10.1080/20430795.2017.1314814
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1314814
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:3:p:233-274
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Journal of Sustainable Finance & Investment (JSFI) Special Section on Risk Management and Sustainability in the Financial Sector
Journal: Journal of Sustainable Finance & Investment
Pages: 245-246
Issue: 3
Volume: 6
Year: 2016
Month: 7
X-DOI: 10.1080/20430795.2016.1188523
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1188523
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:3:p:245-246
Template-Type: ReDIF-Article 1.0
Author-Name: Audrius Kabašinskas
Author-X-Name-First: Audrius
Author-X-Name-Last: Kabašinskas
Author-Name: Lina Kadikinaitė
Author-X-Name-First: Lina
Author-X-Name-Last: Kadikinaitė
Title: The construction of an investment portfolio using stochastic programming
Abstract:
The aim of this paper is to construct a portfolio of eight different stocks from New York Stock Exchange market (AIR, ABM, TSCO, HLX, KO, DIS, AMZN, and VZ) using stochastic programming. The next stage (period) prices are generated using a stochastic difference equation in order to introduce uncertainty. For the portfolio selection, we use three different risk measures – min–max decision rule, value-at-risk, and conditional value-at-risk. After constructing three different portfolios, they are compared using well-known efficiency ratios – Sharpe, Sortino, and Rachev ratios.
Journal: Journal of Sustainable Finance & Investment
Pages: 151-160
Issue: 3
Volume: 6
Year: 2016
Month: 7
X-DOI: 10.1080/20430795.2016.1188538
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1188538
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:3:p:151-160
Template-Type: ReDIF-Article 1.0
Author-Name: Aidy Halimanjaya
Author-X-Name-First: Aidy
Author-X-Name-Last: Halimanjaya
Title: Allocating climate mitigation finance: a comparative analysis of five major green donors
Abstract:
A mitigation finance allocation framework (global needs, recipients’ performance, recipients’ needs and donors’ interests) is introduced as a way to identify determinants according to which individual donors allocate climate mitigation finance across developing countries. A two-part model was used to analyse a three-dimensional Rio Marker panel data set (donor-recipient-time), representing 5 green donors and 180 developing countries in the time period 1998–2010. Overall, while the determinants that the donors used to allocate mitigation finance across countries are heterogeneous, their responses to global needs are almost homogenous. Developing countries with large carbon sinks and good institutional performance tend to be the main destination for major green donors’ mitigation finance. Unsurprisingly, as with environmental aid, and aid more broadly, Japan and France’s allocation of mitigation finance is influenced by their geopolitical interests, which may divert it from its principal objective of mitigating greenhouse gas emissions. One new finding is Japan, Germany, France and Norway’s emerging interest in allocating mitigation finance to their Clean Development Mechanism (CDM) host countries, where they may seek to catalyse their private companies’ investment in green projects but risk overcrowding CDM host countries and promoting global inequality.
Journal: Journal of Sustainable Finance & Investment
Pages: 161-185
Issue: 3
Volume: 6
Year: 2016
Month: 7
X-DOI: 10.1080/20430795.2016.1201412
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1201412
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:3:p:161-185
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Hafenstein
Author-X-Name-First: Andrea
Author-X-Name-Last: Hafenstein
Author-Name: Alexander Bassen
Author-X-Name-First: Alexander
Author-X-Name-Last: Bassen
Title: Influences for using sustainability information in the investment decision-making of non-professional investors
Abstract:
Non-professional investors face a series of complex decisions when considering environmental, social and governance (ESG) issues for their investment activities. As such, this study sheds light on the question: what influences the use of sustainable information and the decision to invest in a sustainable company by non-professional investors? In order to answer the question, this article builds on the behavioral finance and information overload literature. We used an online survey carried out in Germany and applied a structural equation model. The results show that the personal orientation toward sustainability issues is the most important factor in deciding to use a company’s sustainability information. Furthermore, the study reveals that the decision to invest in a sustainable company is influenced by the personal sustainability orientation, identification induced by a good feeling, their willingness to waive returns for sustainability, their exposure to sustainability information, the investor’s age and information overload. The results show that non-professional investors do not distinguish between the different aspects of sustainability, that is, ESG. The study contributes to research which explores decision-making of non-professional investors, specifically their perception of sustainability information. It identifies factors influencing the use of sustainability information and the decision to invest in sustainable companies.
Journal: Journal of Sustainable Finance & Investment
Pages: 186-210
Issue: 3
Volume: 6
Year: 2016
Month: 7
X-DOI: 10.1080/20430795.2016.1203598
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1203598
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:3:p:186-210
Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Barker
Author-X-Name-First: Sarah
Author-X-Name-Last: Barker
Author-Name: Mark Baker-Jones
Author-X-Name-First: Mark
Author-X-Name-Last: Baker-Jones
Author-Name: Emilie Barton
Author-X-Name-First: Emilie
Author-X-Name-Last: Barton
Author-Name: Emma Fagan
Author-X-Name-First: Emma
Author-X-Name-Last: Fagan
Title: Climate change and the fiduciary duties of pension fund trustees – lessons from the Australian law
Abstract:
Leading financial market participants increasingly recognise that issues associated with climate change present significant – if not unparalleled – financial risks. Regulatory, technological and social responses present particular issues for investment strategy, asset valuation, risk assessment and disclosure by institutional investors. However, governance literature has historically characterised climate change as a non-financial issue, at least over mainstream investment horizons. Accordingly, there has been little academic analysis of whether trustee directors are compelled, rather than permitted, to have regard to climate change risks. This paper seeks to advance the literature by examining the obligations of pension (or ‘superannuation’) fund trustee directors in Australia. The analysis focuses on the obligation to apply due care, skill and diligence under section 52A of the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act). It concludes that a passive or inactive governance of climate change portfolio risks is unlikely to satisfy their duties: whether the inactivity emanates from climate change denial, honest ignorance or unreflective assumption, strategic paralysis due to impact uncertainty, or a default to a base set by regulators or investor peers. Considered decisions to prevail with ‘investment as usual’ may also fail to satisfy the duty if they are based on outdated methodologies and assumptions.
Journal: Journal of Sustainable Finance & Investment
Pages: 211-244
Issue: 3
Volume: 6
Year: 2016
Month: 7
X-DOI: 10.1080/20430795.2016.1204687
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1204687
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:3:p:211-244
Template-Type: ReDIF-Article 1.0
Author-Name: Lucas Kruitwagen
Author-X-Name-First: Lucas
Author-X-Name-Last: Kruitwagen
Author-Name: Kaveh Madani
Author-X-Name-First: Kaveh
Author-X-Name-Last: Madani
Author-Name: Ben Caldecott
Author-X-Name-First: Ben
Author-X-Name-Last: Caldecott
Author-Name: Mark H. W. Workman
Author-X-Name-First: Mark H. W.
Author-X-Name-Last: Workman
Title: Game theory and corporate governance: conditions for effective stewardship of companies exposed to climate change risks
Abstract:
Engagement between investors and corporate boards has been suggested as a pathway to mitigate stranded asset and climate change risks. Debate is ongoing as to whether divestment or active ownership strategies are more appropriate to deliver long-term value and environmental sustainability. The paper tests the effectiveness of owner engagement strategies by studying the conditions for cooperation between investors and their companies. Characteristics of investors and companies are modelled in game theoretic frameworks, informed by semi-structured interviews with professionals from the energy and finance industries, and academia, NGO, and regulatory sectors. Conditions for mutual cooperation between investors and companies are characterized as prisoners’ dilemmas. A number of parameters are examined for their impact on the development of sustained cooperative equilibria, including: the benefits and costs of cooperation; the degree of strategic foresight; individual discount factors; and mutual history. Challenges in the formation of investor coalitions are characterized and solutions are proposed.
Journal: Journal of Sustainable Finance & Investment
Pages: 14-36
Issue: 1
Volume: 7
Year: 2017
Month: 1
X-DOI: 10.1080/20430795.2016.1188537
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1188537
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:1:p:14-36
Template-Type: ReDIF-Article 1.0
Author-Name: Bob Buhr
Author-X-Name-First: Bob
Author-X-Name-Last: Buhr
Title: Assessing the sources of stranded asset risk: a proposed framework
Abstract:
Long-term investors, particularly bond investors, do not currently enjoy an efficient framework for assessing where stranded assets (SAs) might arise. Traditional risk categories currently embodied in credit research – Business Risk and Financial Risk – can capture a number of Environmental, Social and Governance (ESG) issues. However, there are some risks that are difficult to assess in this framework, primarily because many ESG categories themselves are not particularly efficient, or even meaningful, as analytical categories. We propose that a better analysis of these risks can be obtained by categorizing what are currently called ESG risks into three specific risk categories: (1) Operational or Management Risk; (2) Climate Risk, primarily related to climate mitigation and adaptation; and (3) Natural Capital Risks, a category intended to capture natural capital depletion, subsidy loss risks, and certain geopolitical risks – risks associated with water resources perhaps being the best example of a Natural Capital Risk. SAs can arise from all three sources, but those arising from Climate and Natural Capital Risk are more likely to be both significant and irreversible.
Journal: Journal of Sustainable Finance & Investment
Pages: 37-53
Issue: 1
Volume: 7
Year: 2017
Month: 1
X-DOI: 10.1080/20430795.2016.1194686
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1194686
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:1:p:37-53
Template-Type: ReDIF-Article 1.0
Author-Name: Howard Covington
Author-X-Name-First: Howard
Author-X-Name-Last: Covington
Title: Investment consequences of the Paris climate agreement
Abstract:
This paper develops a simple model of an energy transition. Projections for growth in renewables and electric vehicles suggest that the oil and gas industry will be disrupted during the 2020s, but that, as things stand, carbon dioxide emissions are unlikely to fall fast enough to keep within a 2° emissions budget. To keep warming to 2°, additional ways of reducing emissions from industry or of accelerating emissions reductions from generation, transport and buildings will be needed together with an extensive programme of carbon dioxide removal.
Journal: Journal of Sustainable Finance & Investment
Pages: 54-63
Issue: 1
Volume: 7
Year: 2017
Month: 1
X-DOI: 10.1080/20430795.2016.1196556
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1196556
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:1:p:54-63
Template-Type: ReDIF-Article 1.0
Author-Name: Chelsie Hunt
Author-X-Name-First: Chelsie
Author-X-Name-Last: Hunt
Author-Name: Olaf Weber
Author-X-Name-First: Olaf
Author-X-Name-Last: Weber
Author-Name: Truzaar Dordi
Author-X-Name-First: Truzaar
Author-X-Name-Last: Dordi
Title: A comparative analysis of the anti-Apartheid and fossil fuel divestment campaigns
Abstract:
Divestment from the fossil fuel industry is campaigned as a means to address carbon-induced anthropogenic climate change, much like the anti-Apartheid divestment movement that was campaigned as a mean to address the country’s human rights violations. However, there is a gap in current literature that objectively compares the similarities and differences between the two campaigns. Discrepancies may arise from an evolving understanding of what constitutes a socially responsible investment or the underlying strategy and intended outcomes of the campaigns themselves. Through a comparative content analysis this paper identifies differences and similarities of both campaigns.
Journal: Journal of Sustainable Finance & Investment
Pages: 64-81
Issue: 1
Volume: 7
Year: 2017
Month: 1
X-DOI: 10.1080/20430795.2016.1202641
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1202641
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:1:p:64-81
Template-Type: ReDIF-Article 1.0
Author-Name: Jakob Thomä
Author-X-Name-First: Jakob
Author-X-Name-Last: Thomä
Author-Name: Hugues Chenet
Author-X-Name-First: Hugues
Author-X-Name-Last: Chenet
Title: Transition risks and market failure: a theoretical discourse on why financial models and economic agents may misprice risk related to the transition to a low-carbon economy
Abstract:
This paper provides a theoretical discourse linking traditional market failure literature and the recent research around potential stranded assets risks associated with the transition to a low-carbon economy (defined here as ‘transition risks’). While it does not seek to prove a mispricing in practical terms, it demonstrates the extent to which the market failure literature provides theoretical evidence of a potential mispricing of these risks, as a result of the design and interpretation of financial risk models, and the practices and institutions linked to economic agents. The evidence supports a growing body of practical literature highlighting transition risks in financial markets. It suggests that there may be a case for policy intervention to address the market failures and associated potential mispricing of risk. It also suggests however that this intervention will likely need to address both the design of financial risk models and associated transparency around their results, and the actual institutions governing risk management. A key challenge in this regard involves resolving the principal–agent problem in financial markets and the associated ‘tragedy of the horizons’.
Journal: Journal of Sustainable Finance & Investment
Pages: 82-98
Issue: 1
Volume: 7
Year: 2017
Month: 1
X-DOI: 10.1080/20430795.2016.1204847
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:1:p:82-98
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Silver
Author-X-Name-First: Nicholas
Author-X-Name-Last: Silver
Title: Blindness to risk: why institutional investors ignore the risk of stranded assets
Abstract:
There has been an apparent resistance amongst mainstream investors to integrate the risk of stranded assets into investment decisions. This paper considers if the structure of the investment chain causes investors to be blind to risks such as stranded assets. This paper considers how the interaction between financial economic theory, regulation and the practices of the fund management industry gives rise to the way the industry analyses and manages risk. The paper draws on a mixture of academic literature and the author’s own experience of industry practice. The paper finds that institutional investors are constrained to measure risk in relation to a benchmark; risk becomes a function of volatility and divergence from peers. The risk of stranded assets is invisible in the decision-making chain. The industry is further constrained by its culture, regulation and inappropriate incentives. The paper concludes that integrating stranded asset risk requires a drastic overhaul of the regulation of, and theory used in, the investment chain. This would better align the investment industry with the long-term capital allocation requirements of society.
Journal: Journal of Sustainable Finance & Investment
Pages: 99-113
Issue: 1
Volume: 7
Year: 2017
Month: 1
X-DOI: 10.1080/20430795.2016.1207996
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:1:p:99-113
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Journal of Sustainable Finance & Investment
Pages: 138-138
Issue: 1
Volume: 7
Year: 2017
Month: 1
X-DOI: 10.1080/20430795.2016.1224152
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1224152
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:1:p:138-138
Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth S. Harnett
Author-X-Name-First: Elizabeth S.
Author-X-Name-Last: Harnett
Title: Social and asocial learning about climate change among institutional investors: lessons for stranded assets
Abstract:
Institutional investment portfolios are currently, and will increasingly be, affected by the risks and opportunities resulting from climate change. This paper contributes new empirical data from 58 in-depth interviews and a global investor survey to explore how climate change is being learnt socially and asocially within the institutional investment industry. This research seeks to identify ways in which the relatively novel concept of ‘stranded assets’ can be better disseminated to investment professionals. Importantly, both social and asocial learning can affect investment decisions, with some actors usefully providing information via both channels. Better learning, language and leadership within the institutional investment system could facilitate the dissemination of climate and stranded asset discourses among investors, but an imperative to communicate effectively rather than simply communicating more is noted. This paper should interest both investment professionals keen to learn more about the issue and academic researchers seeking to engage investors on these topics.
Journal: Journal of Sustainable Finance & Investment
Pages: 114-137
Issue: 1
Volume: 7
Year: 2017
Month: 1
X-DOI: 10.1080/20430795.2016.1249095
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1249095
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:1:p:114-137
Template-Type: ReDIF-Article 1.0
Author-Name: Ben Caldecott
Author-X-Name-First: Ben
Author-X-Name-Last: Caldecott
Title: Introduction to special issue: stranded assets and the environment
Journal: Journal of Sustainable Finance & Investment
Pages: 1-13
Issue: 1
Volume: 7
Year: 2017
Month: 1
X-DOI: 10.1080/20430795.2016.1266748
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1266748
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:1:p:1-13
Template-Type: ReDIF-Article 1.0
Author-Name: Quintin G Rayer
Author-X-Name-First: Quintin G
Author-X-Name-Last: Rayer
Title: In search of really ethical real estate funds for retail investors
Abstract:
Just as conventional portfolios benefit from diversification into a range of asset classes, including property; ethically-invested portfolios also benefit from diversification into ethical property funds. While ethical equity and bond funds are reasonably abundant, ethical property funds are much harder to find. A few do exist, but these appear to raise some ethical issues in their own right, in particular, the role of ethical criteria relating to tenants’ activities. It would appear that in this respect there is a gap in the ethical product range provided by the fund management industry with a lack of property funds that would meet the requirements of committed ethical investors.
Journal: Journal of Sustainable Finance & Investment
Pages: 329-348
Issue: 4
Volume: 8
Year: 2018
Month: 10
X-DOI: 10.1080/20430795.2018.1481641
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1481641
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:4:p:329-348
Template-Type: ReDIF-Article 1.0
Author-Name: Frank AJ Wagemans
Author-X-Name-First: Frank AJ
Author-X-Name-Last: Wagemans
Author-Name: CSA (Kris) van Koppen
Author-X-Name-First: CSA (Kris)
Author-X-Name-Last: van Koppen
Author-Name: Arthur PJ Mol
Author-X-Name-First: Arthur PJ
Author-X-Name-Last: Mol
Title: Engagement on ESG issues by Dutch pension funds: is it reaching its full potential?
Abstract:
In socially responsible investment (SRI), engagement forms one of the core strategies of institutional investors. In investigating the case of Dutch pension funds, this study answers the following questions: what networks shape engagement with investees, and what factors determine the effectiveness of engagement? The methods we used were interviews and a multiyear survey. Engagement was practised by 82% of the largest Dutch pension funds in 2016 and was implemented by asset managers and service providers. However, these actors are isolated from actors outside the financial sector. The legitimacy of the investor influences the effectiveness of engagement, whereas the number of shares is less important. The relationship between the engager and investee and the receptivity of the investee towards engagement are also of importance. Engagement can be made more effective when pension funds focus on specific themes, target companies open to engagement, and also seek collaboration with societal and policy actors.
Journal: Journal of Sustainable Finance & Investment
Pages: 301-322
Issue: 4
Volume: 8
Year: 2018
Month: 10
X-DOI: 10.1080/20430795.2018.1485379
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1485379
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:4:p:301-322
Template-Type: ReDIF-Article 1.0
Author-Name: Mike Wardle
Author-X-Name-First: Mike
Author-X-Name-Last: Wardle
Author-Name: Simon Mills
Author-X-Name-First: Simon
Author-X-Name-Last: Mills
Title: Transparency and disclosure – do policy frameworks enhance financial centre reputation?
Abstract:
Green Finance has grown considerably in recent years. This has driven a move to greater transparency and disclosure from investors and regulators. An analysis of factors driving the reputation of financial centres’ green offerings shows that factors other than transparency and disclosure carry greater weight. This suggests that transparency and disclosure are hygiene factors, necessary for a financial centre's baseline credibility in green finance rather than a factor driving the reputation of financial centres for green finance.
Journal: Journal of Sustainable Finance & Investment
Pages: 323-328
Issue: 4
Volume: 8
Year: 2018
Month: 10
X-DOI: 10.1080/20430795.2018.1485380
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1485380
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:4:p:323-328
Template-Type: ReDIF-Article 1.0
Author-Name: Miwa Nakai
Author-X-Name-First: Miwa
Author-X-Name-Last: Nakai
Author-Name: Tomonori Honda
Author-X-Name-First: Tomonori
Author-X-Name-Last: Honda
Author-Name: Nariaki Nishino
Author-X-Name-First: Nariaki
Author-X-Name-Last: Nishino
Author-Name: Kenji Takeuchi
Author-X-Name-First: Kenji
Author-X-Name-Last: Takeuchi
Title: Psychological characteristics of potential SRI investors and its motivation in Japan: an experimental approach
Abstract:
This paper aims to identify psychological characteristics of potential investors of socially responsible investment (SRI) in Japan to explain its possible motivation by economic experiments. We asked subjects to make decisions regarding stock investments on the basis of three attributes of return, variance, and corporate social responsibility (CSR). We also conducted a dictator game and two lottery-choice experiments to measure subjects’ psychological characteristics: altruism, risk aversion, and time discount rate. Applying a conditional logit model as well as mixed logit model, we found that people who have a higher time discount rate tend to be SRI investors.
Journal: Journal of Sustainable Finance & Investment
Pages: 349-367
Issue: 4
Volume: 8
Year: 2018
Month: 10
X-DOI: 10.1080/20430795.2018.1490556
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1490556
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:4:p:349-367
Template-Type: ReDIF-Article 1.0
Author-Name: Asima Ihsan
Author-X-Name-First: Asima
Author-X-Name-Last: Ihsan
Title: Financial requirement to achieve health-related SDGs in Punjab
Abstract:
Spending adequate resources is a key component to achieve the Sustainable Development Goals but no attempt has yet been made to estimate the funds required to achieve the SDGs in Punjab. This study attempts to analyze the level of expenditures that will be required to meet health-related SDGs in Punjab. The methodology used to estimate the funds requires to achieve the health-related SDGs is simple linear regression. The results show that we must increase our per capita spending in health by 13%/year. Furthermore, we have also estimated that if the previous trend of spending persists in health sector, the increase in per capita spending will be only 9% and by this level of increase in spending, we will be far away to achieve health-related SDGs in Punjab. Health care spending at all tier is indeed required to become more effective to achieve SDGs.
Journal: Journal of Sustainable Finance & Investment
Pages: 183-190
Issue: 3
Volume: 9
Year: 2019
Month: 7
X-DOI: 10.1080/20430795.2018.1562774
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1562774
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:3:p:183-190
Template-Type: ReDIF-Article 1.0
Author-Name: Jennifer Bender
Author-X-Name-First: Jennifer
Author-X-Name-Last: Bender
Author-Name: Todd Arthur Bridges
Author-X-Name-First: Todd Arthur
Author-X-Name-Last: Bridges
Author-Name: Kushal Shah
Author-X-Name-First: Kushal
Author-X-Name-Last: Shah
Title: Reinventing climate investing: building equity portfolios for climate risk mitigation and adaptation
Abstract:
Institutional investors are increasingly concerned with the material financial risks associated with global warming and the impacts of climate change on corporate financial performance and security returns. The challenge remains how to empirically quantify climate risk from an investment perspective and build investable portfolios that address the transition to a low-carbon economy. This study analyzes the available metrics for capturing climate-related investment considerations. We undertake a comprehensive review of the data characteristics for metrics such as carbon intensity, green revenue, and fossil fuel reserves, highlighting their coverage and distributional characteristics. These data characteristics are critical when integrating them into investment strategies. Building on our findings, we propose a framework for building climate strategies within public equities which rests on both mitigating the impact of climate risk today and adapting to climate risk in the future. This ‘mitigation and adaptation’ framework has enough flexibility to build portfolios at different levels of concentration, tracking error, and climate risk exposure. For example, we can build a portfolio which aligns with climate model projections. We illustrate our framework with a portfolio calibrated to align with the most conservative climate model projections, which seek to limit cumulative CO2 emissions to a threshold below the 2°C scenario.
Journal: Journal of Sustainable Finance & Investment
Pages: 191-213
Issue: 3
Volume: 9
Year: 2019
Month: 7
X-DOI: 10.1080/20430795.2019.1579512
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1579512
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:3:p:191-213
Template-Type: ReDIF-Article 1.0
Author-Name: Anastassios Gentzoglanis
Author-X-Name-First: Anastassios
Author-X-Name-Last: Gentzoglanis
Title: Corporate social responsibility and financial networks as a surrogate for regulation
Abstract:
Traditionally, Coase’s bargaining theory is used to explain the adoption of the CSR model by nonfinancial firms. According to this approach, researchers view firms producing negative externalities and the community as two antagonizing agents with diametrically opposing interests. Provided there is a minimum availability of social capital, firms adopt the social responsibility principle and share part of their profits with the community, through the Coasean bargaining process. Although these models contribute to the advancement of the literature, they do fail to explain the voluntary adoption of the CSR model by financial and nonfinancial firms. The objective of this paper is to better understand the current trend towards the voluntary adoption of the CSR model by financial and nonfinancial firms. It adapts the Williamson’s conceptual network framework to the context where firms prefer a non-regulated to a regulated environment. By introducing regulation as a constraint variable that governments could bring whenever the industry does not perform according to set standards, firms have the incentive to adopt voluntarily the CSR model to avoid regulation. In that sense, networks are grantors of ‘social licenses’ to firms that adopt the CSR principle.
Journal: Journal of Sustainable Finance & Investment
Pages: 214-225
Issue: 3
Volume: 9
Year: 2019
Month: 7
X-DOI: 10.1080/20430795.2019.1589195
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1589195
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:3:p:214-225
Template-Type: ReDIF-Article 1.0
Author-Name: Bridget Bearden
Author-X-Name-First: Bridget
Author-X-Name-Last: Bearden
Title: Tax rates of responsible stock mutual fund holdings
Abstract:
Two limitations of corporate social responsibility (CSR) discussion are addressed in this paper: first, the investment attributes of CSR have been prioritized over the tax implications; and second, empirical CSR analysis has focused on individual companies versus aggregated portfolios. Both limitations impact everyday investors, who bear the corporate tax burden as both ‘labor’ and ‘capital owners’, via aggregated portfolios. Further, empirical studies have shown mixed results on the relationship between CSR and corporate tax rate. This research adds to the CSR literature by intertwining tax effects of CSR with aggregated portfolios, by using environmental, social, and governance (ESG) mutual funds as a proxy. Effective tax rates of underlying securities were analyzed for years 2015, 2016, and 2017 between ESG-themed and non-ESG-themed mutual funds. A significant relationship was found only for year 2015, in which ESG-themed large-capitalization mutual funds had a lower tax rate than non-ESG large-capitalization mutual funds.
Journal: Journal of Sustainable Finance & Investment
Pages: 226-239
Issue: 3
Volume: 9
Year: 2019
Month: 7
X-DOI: 10.1080/20430795.2019.1600331
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1600331
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:3:p:226-239
Template-Type: ReDIF-Article 1.0
Author-Name: Lei Delsen
Author-X-Name-First: Lei
Author-X-Name-Last: Delsen
Author-Name: Alex Lehr
Author-X-Name-First: Alex
Author-X-Name-Last: Lehr
Title: Value matters or values matter? An analysis of heterogeneity in preferences for sustainable investments
Abstract:
Pension fund investments have a substantial influence on sustainability. We analyze preferences for sustainable investment among a representative cross-section of 2486 pension fund participants in the Netherlands, through a questionnaire survey fielded in the LISS panel. In contrast to standard investment theory, we find that sustainable investments are commonly favored, even if they harm financial interests. To explain variation among participants’ preferences for sustainable investments, we test socio-demographic factors suggested by dominant neoclassical investment and behavioral finance theories. Moreover, we add to the existing literature by developing an alternative cultural-theoretical explanation that stresses the role of value orientations. We estimate linear and generalized ordered logit regression models, and find little support for neoclassical and behavioral finance theories, but substantial support for the importance of value orientations. Given established patterns of value-change, this finding suggests that a further increase in the demand for sustainable investments across developed economies is a likely scenario.
Journal: Journal of Sustainable Finance & Investment
Pages: 240-261
Issue: 3
Volume: 9
Year: 2019
Month: 7
X-DOI: 10.1080/20430795.2019.1608709
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1608709
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:3:p:240-261
Template-Type: ReDIF-Article 1.0
Author-Name: Todd Cort
Author-X-Name-First: Todd
Author-X-Name-Last: Cort
Title: Incentivizing the direction of multi-capital toward inclusive capitalism
Abstract:
The financial system has been extraordinarily successful at moving capital to where it can create more financial value. But it has not been successful at moving capital to create social or environmental value. The result is large swaths of society and the environment that continue to need capital even as our global economy grows year over year. The resulting tension between those that have and those that need capital is leading to new frameworks for how capital can be conceived, measured and balanced. These multi-capital approaches bear the potential to create more responsible and sustainable companies. However, too frequently, multi-capital approaches are presumed to lead to inclusive or equitable distribution. This is a problematic presumption as one does not necessarily lead to the other and unless mechanisms are put into place to guide the development of multi-capital frameworks, the potential exists to exacerbate the disproportionate concentration of social and natural resources toward more wealthy groups of people. This paper explores the link between evolving multi-capital (financial, manufactured, social, intellectual, environmental and human capital) approaches and our ability to create more inclusive and equitable distribution of wealth and argues that in order to link multi-capital and inclusive capitalism, a series of fundamental reforms in shareholder agency will need to be adopted.
Journal: Journal of Sustainable Finance & Investment
Pages: 203-212
Issue: 3
Volume: 8
Year: 2018
Month: 7
X-DOI: 10.1080/20430795.2018.1423850
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1423850
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:3:p:203-212
Template-Type: ReDIF-Article 1.0
Author-Name: George Apostolakis
Author-X-Name-First: George
Author-X-Name-Last: Apostolakis
Author-Name: Gert Van Dijk
Author-X-Name-First: Gert
Author-X-Name-Last: Van Dijk
Author-Name: Robert J. Blomme
Author-X-Name-First: Robert J.
Author-X-Name-Last: Blomme
Author-Name: Frido Kraanen
Author-X-Name-First: Frido
Author-X-Name-Last: Kraanen
Author-Name: Athanasios P. Papadopoulos
Author-X-Name-First: Athanasios P.
Author-X-Name-Last: Papadopoulos
Title: Predicting pension beneficiaries’ behaviour when offered a socially responsible and impact investment portfolio
Abstract:
In recent years, financial and demographic conditions, including low interest rates and volatile equity markets, have been testing the endurance of pension systems. Concern about the sustainability of pension systems has prompted discussion about introducing individual choices under the collective choice mandate. An ongoing discussion seeks to provide more freedom of choice and to shift towards a more individualized risk system within the collective mandate. This suggested individualization will increase operational costs but aims to keep pensions at current levels by shifting risk onto employees. Following the theory of planned behaviour (TPB), the objective of this paper is to examine pension beneficiaries’ intention to adopt a portfolio consisting of socially responsible and impact investments. We employ confirmatory factor and regression analyses to better understand pension beneficiaries’ attitudes, social norms, perceived consumer effectiveness, and intentions for such a choice. Responses from 637 respondents from a Dutch pension administrative organization were collected and identified as a valid sample. Consistent with the theory, the results of our analysis revealed that attitudes and social norms positively affected individuals’ intention to invest in this specific portfolio. Furthermore, we expand our model and incorporate perceived consumer effectiveness and consumer confidence as important factors influencing and moderating socially responsible behaviour, respectively. Our results imply that understanding the behavioural determinants affecting pension beneficiaries’ intentions can be an effective tool for increasing their involvement in pension affairs by making their own choices. Our findings yield policy recommendations for stimulating socially responsible investment behaviour in pension beneficiaries by examining the determinants of human behaviour.
Journal: Journal of Sustainable Finance & Investment
Pages: 213-241
Issue: 3
Volume: 8
Year: 2018
Month: 7
X-DOI: 10.1080/20430795.2018.1429148
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1429148
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:3:p:213-241
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Cash
Author-X-Name-First: Daniel
Author-X-Name-Last: Cash
Title: Sustainable finance ratings as the latest symptom of ‘rating addiction’
Abstract:
Using the widely accepted but rarely articulated concept of ‘rating addiction’, this piece aims to examine the recent and concerted entrance of the credit rating agencies into the sustainable finance field against the backdrop of ‘rating addiction’. Once the concept of ‘rating addiction’ is positioned, the effects of the addiction can be clearly witnessed by even just a cursory glance at the history of the credit rating agencies, particularly their recent history. On that basis, this article provides a warning for regulators and the field with regards to the potentially negative effect that credit rating agencies can have upon the ever-growing and socially-important sustainable finance sector. Additionally, assessing the aptitude of the agencies in this sector, in comparison to the sector's utilisation of their products, may provide further evidence of a system addicted to ratings.
Journal: Journal of Sustainable Finance & Investment
Pages: 242-258
Issue: 3
Volume: 8
Year: 2018
Month: 7
X-DOI: 10.1080/20430795.2018.1437996
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1437996
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:3:p:242-258
Template-Type: ReDIF-Article 1.0
Author-Name: Ayi Gavriel Ayayi
Author-X-Name-First: Ayi Gavriel
Author-X-Name-Last: Ayayi
Author-Name: James Atta Peprah
Author-X-Name-First: James Atta
Author-X-Name-Last: Peprah
Title: Cost implications of microfinance regulation: lessons from Ghana
Abstract:
The paper examines the impact of the costs associated with regulation on Microfinance Institutions in Ghana. To achieve the paper objective, we use a unique set of field data from 25 Microfinance Institutions from different regions of Ghana and opinions gathered from the managers of the sampled MFIs. We find that regulation increases an array of doing business costs that MFIs tend to pass to their micro-clients by increasing the interest rates. Furthermore, we find that the costs of regulation have adverse effects on outreach: reduction in percent of female borrowers. These findings are corroborated by the comparison analysis we conducted on Ghanaian MFIs that report to the Mixmarket. Regulatory instruments need to be well designed to achieve their dual roles of providing sound financial services and protecting micro-clients without jeopardizing the outreach mission of the MFIs.
Journal: Journal of Sustainable Finance & Investment
Pages: 259-274
Issue: 3
Volume: 8
Year: 2018
Month: 7
X-DOI: 10.1080/20430795.2018.1462633
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1462633
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:3:p:259-274
Template-Type: ReDIF-Article 1.0
Author-Name: Amar Causevic
Author-X-Name-First: Amar
Author-X-Name-Last: Causevic
Author-Name: Sujeetha Selvakkumaran
Author-X-Name-First: Sujeetha
Author-X-Name-Last: Selvakkumaran
Title: The role of multilateral climate funds in urban transitions between 1994 and 2014
Abstract:
The developing world is currently undergoing fast urbanization, and urban infrastructure systems built today are likely to influence global greenhouse gas emissions and energy consumption patterns for decades to come. This study draws on the analysis of 1994–2014 climate finance investments by five major multilateral climate funds that have a record of directly supporting urban climate mitigation and adaptation actions in cities across developing countries. The analysis indicates that the administered funds provided very limited support to urban climate finance across the developing world. In middle-income countries mitigation projects within transport sector dominated both urban multilateral climate finance and co-finance. Cities in low-income countries attracted non-considerable amounts of urban climate finance, most of which were supporting urban adaptation efforts. The study concludes by outlining that multilateral climate funds should give higher priority to urban climate finance on their investment portfolios with a particular emphasis on rapidly urbanizing cities in low-income countries.
Journal: Journal of Sustainable Finance & Investment
Pages: 275-299
Issue: 3
Volume: 8
Year: 2018
Month: 7
X-DOI: 10.1080/20430795.2018.1465769
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1465769
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:3:p:275-299
Template-Type: ReDIF-Article 1.0
Author-Name: Toyo Kawabata
Author-X-Name-First: Toyo
Author-X-Name-Last: Kawabata
Title: What are the determinants for financial institutions to mobilise climate finance?
Abstract:
As the climate finance flow is far behind the level needed to meet the target in the Paris Agreement, it is important to examine how to mobilise further climate finance. This paper conducted an empirical analysis on what determines climate finance engagement of financial institutions from the institutionally focused perspective that considers the external pressures and the internal governance. Publicly available information of 102 global financial institutions was used to apply a multiple regression analysis. The results confirm that there is influence of international climate finance initiatives on financial institutions with regard to the mobilisation of climate finance, whereas senior management engagement on climate change also encourages the higher commitment to climate finance from financial institutions. The result leaves behind an important implication for fragmented climate governance: the engagement of climate finance initiatives has a facilitative role to provide pressures on financial institutions to mobilise climate finance.
Journal: Journal of Sustainable Finance & Investment
Pages: 263-281
Issue: 4
Volume: 9
Year: 2019
Month: 10
X-DOI: 10.1080/20430795.2019.1611148
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1611148
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:4:p:263-281
Template-Type: ReDIF-Article 1.0
Author-Name: Bernhard Zwergel
Author-X-Name-First: Bernhard
Author-X-Name-Last: Zwergel
Author-Name: Anett Wins
Author-X-Name-First: Anett
Author-X-Name-Last: Wins
Author-Name: Christian Klein
Author-X-Name-First: Christian
Author-X-Name-Last: Klein
Title: On the heterogeneity of sustainable and responsible investors
Abstract:
We demonstrate that German retail investors have very heterogeneous requirements pertaining to ‘sustainable investments’ as a group, based on a representative survey ($n$n = 1014). According to investment behavior we identify three investor groups: ‘Sustainable and Responsible’ (SR) investors, and conventional investors that are either ‘generally interested’ (INT) or ‘not interested’ (CONV) in investing in ethical-ecological investments. The most frequently selected screening criteria are identical for SR, INT and CONV investors. However, measures of intra-group and inter-group heterogeneity indicate that these three groups are heterogeneous with very individual demands regarding sustainable investments. Therefore, it is more important to aid the investor in his search for a fund that meets his screening preferences than to create a fund that tries to anticipate investor groups’ screening preferences.
Journal: Journal of Sustainable Finance & Investment
Pages: 282-294
Issue: 4
Volume: 9
Year: 2019
Month: 10
X-DOI: 10.1080/20430795.2019.1613820
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1613820
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:4:p:282-294
Template-Type: ReDIF-Article 1.0
Author-Name: Babajide Oyewo
Author-X-Name-First: Babajide
Author-X-Name-Last: Oyewo
Author-Name: Solabomi Ajibolade
Author-X-Name-First: Solabomi
Author-X-Name-Last: Ajibolade
Author-Name: Alero Obazee
Author-X-Name-First: Alero
Author-X-Name-Last: Obazee
Title: The influence of stakeholders on management accounting practice
Abstract:
This study investigated the influence of stakeholders on management accounting practice (MAP). The research objectives were to: appraise level of influence exerted by stakeholders on management accounting activities; assess practice areas in management accounting affected by stakeholder’s influence; and determine the stakeholder groups that wield the highest influence on MAP. Data collection was aided by a structured questionnaire administered on Senior Finance Officers tasked with strategic and financial oversight roles from 131 firms across major sectors of the Nigerian economy. Descriptive statistics, one sample t-test, Analysis of Variance (ANOVA), Multivariate Analysis of Variance (MANOVA), and Multiple-discriminant analysis were used for analysis. Results suggest that the overall level of influence wielded by stakeholders on management accounting activities is moderate. MAP of companies appears not to be strongly driven by strategy-related variables such as competitors and customers, but by coercive institutional factors. Organisations that want to survive happenings in the contemporary business environment are implored to entrench customer- and competitor- consideration in their management accounting activities. Considering that modern management accounting techniques focused on competitors’ activities, customers’ tastes and market sentiments are externally-orientated, organisations may have to set up functions that will take up the responsibilities of continuous environmental scanning, intelligence gathering, and market research.
Journal: Journal of Sustainable Finance & Investment
Pages: 295-324
Issue: 4
Volume: 9
Year: 2019
Month: 10
X-DOI: 10.1080/20430795.2019.1619336
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1619336
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:4:p:295-324
Template-Type: ReDIF-Article 1.0
Author-Name: Anshika Agarwal
Author-X-Name-First: Anshika
Author-X-Name-Last: Agarwal
Author-Name: Sumat P. Aggarwal
Author-X-Name-First: Sumat P.
Author-X-Name-Last: Aggarwal
Author-Name: Sunita Gupta
Author-X-Name-First: Sunita
Author-X-Name-Last: Gupta
Title: Sustainable earnings: a new eye for emerging finance
Abstract:
This study captures Sustainable Earnings as a new measure of earnings. An attempt has been made to find the determinants of sustainable earnings. The sustainable earnings are estimated on the basis of Firm-Specific Approach and Industry-Based Approach. The core and non-core components of earnings have been analysed and it is checked whether core components of earnings are superior to non-core components of earnings or not. Further, Intensity of Core Earnings (ICE) for both approaches have been evaluated and their impact on stock returns have been analysed. The data is analysed through Advanced Dynamic Panel Data Techniques. ICE measures are positively related to the sustainability of earnings. Also, the Core Components of earnings are significantly higher than the non-core components of earnings. The study provides substantial evidence on the sustainability of earnings in Emerging India and can be of immense use to Security Analysts, Assets Management Companies, Firms and Investors.
Journal: Journal of Sustainable Finance & Investment
Pages: 325-348
Issue: 4
Volume: 9
Year: 2019
Month: 10
X-DOI: 10.1080/20430795.2019.1619338
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1619338
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:4:p:325-348
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Halstead
Author-X-Name-First: Matthew
Author-X-Name-Last: Halstead
Author-Name: Jasper Donker
Author-X-Name-First: Jasper
Author-X-Name-Last: Donker
Author-Name: Francesco Dalla Longa
Author-X-Name-First: Francesco
Author-X-Name-Last: Dalla Longa
Author-Name: Bob van der Zwaan
Author-X-Name-First: Bob
Author-X-Name-Last: van der Zwaan
Title: The importance of fossil fuel divestment and competitive procurement for financing Europe’s energy transition
Abstract:
For Europe to meet its climate targets, large financial investments in the energy sector are required. Cost reductions for low-carbon power generation are critical to achieve these targets. Particularly pertinent are decreases in financing costs as measured by the WACC. The cost of capital has a bigger impact on the LCOE for renewable energy than for fossil fuel-based power production. It is therefore essential that policy makers and project developers increase their understanding of what drives the cost of capital, including (perceived) investment risks. We believe two areas deserve special attention: (1) the use of competitive bidding for renewable energy projects, which can put downward pressure on their financing costs, and (2) the divestment from fossil fuel projects, which can drive up their financing costs. Using the integrated assessment model TIAM-ECN we demonstrate that Europe’s future energy system is highly sensitive to the level of financing costs.
Journal: Journal of Sustainable Finance & Investment
Pages: 349-355
Issue: 4
Volume: 9
Year: 2019
Month: 10
X-DOI: 10.1080/20430795.2019.1619339
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1619339
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:4:p:349-355
Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Schoenmaker
Author-X-Name-First: Dirk
Author-X-Name-Last: Schoenmaker
Author-Name: Willem Schramade
Author-X-Name-First: Willem
Author-X-Name-Last: Schramade
Title: Investing for long-term value creation
Abstract:
In the transition to a sustainable economy, companies are increasingly adopting the goal of long-term value creation, which integrates financial, social and environmental value. However, institutional investors struggle to invest for long-term value creation and perform the social function of finance. Traditional investment approaches, based on the neo-classical paradigm of efficient markets and portfolio theory, only capture financial value in their financial risk and return space. Attempts at ESG integration are typically too shallow to overcome this problem. In this paper, we examine the set of issues that make this problem so stubborn and we outline the contours of an alternative paradigm, based on adaptive markets, that is better able to pursue long-term value creation. This long-term investment approach includes short investment chains, active management that assesses companies’ transition preparedness, concentrated portfolios, and deep engagement.
Journal: Journal of Sustainable Finance & Investment
Pages: 356-377
Issue: 4
Volume: 9
Year: 2019
Month: 10
X-DOI: 10.1080/20430795.2019.1625012
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1625012
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:4:p:356-377
Template-Type: ReDIF-Article 1.0
Author-Name: Manuel Coeslier
Author-X-Name-First: Manuel
Author-X-Name-Last: Coeslier
Author-Name: Céline Louche
Author-X-Name-First: Céline
Author-X-Name-Last: Louche
Author-Name: Jean-François Hétet
Author-X-Name-First: Jean-François
Author-X-Name-Last: Hétet
Title: On the relevance of low-carbon stock indices to tackle climate change
Abstract:
In a context where the necessary transition to a climate-resilient economy creates financing needs as well as new and underestimated financial risks for investors, low-carbon or carbon-efficient financial indices represent a rapidly growing and promising instrument. By building and testing representative optimization methodologies for low-carbon stock indices, this study investigates their ability to both (i) allow investors to hedge against climate-related financial risks and (ii) promote companies with higher contribution to the energy transition. The analysis is based on a large European stock index for which we benefit from a complete set of bottom-up calculated environmental indicators, including indirect and avoided carbon emissions figures. The results indicate that mainstream low-carbon indices methodologies fail to address the challenges they are based on and call for further improvements in order to align diversified financial instruments with ambitious climate objectives.
Journal: Journal of Sustainable Finance & Investment
Pages: 247-262
Issue: 4
Volume: 6
Year: 2016
Month: 10
X-DOI: 10.1080/20430795.2016.1223471
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1223471
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:4:p:247-262
Template-Type: ReDIF-Article 1.0
Author-Name: N. C. Ashwin Kumar
Author-X-Name-First: N. C.
Author-X-Name-Last: Ashwin Kumar
Author-Name: Camille Smith
Author-X-Name-First: Camille
Author-X-Name-Last: Smith
Author-Name: Leïla Badis
Author-X-Name-First: Leïla
Author-X-Name-Last: Badis
Author-Name: Nan Wang
Author-X-Name-First: Nan
Author-X-Name-Last: Wang
Author-Name: Paz Ambrosy
Author-X-Name-First: Paz
Author-X-Name-Last: Ambrosy
Author-Name: Rodrigo Tavares
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Tavares
Title: ESG factors and risk-adjusted performance: a new quantitative model
Abstract:
Conventional finance wisdom indicates that less risk leads to lower returns. Against this belief, new mathematical analysis, introduced in this article, demonstrates that companies that incorporate Environmental, Social and Fair Governance (ESG) factors show lower volatility in their stock performances than their peers in the same industry, that each industry is affected differently by ESG factors, and that ESG companies generate higher returns. The study assessed, for a period of 2 years, 157 companies listed on the Dow Jones Sustainability Index and 809 that are not.
Journal: Journal of Sustainable Finance & Investment
Pages: 292-300
Issue: 4
Volume: 6
Year: 2016
Month: 10
X-DOI: 10.1080/20430795.2016.1234909
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1234909
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:4:p:292-300
Template-Type: ReDIF-Article 1.0
Author-Name: Linh Pham
Author-X-Name-First: Linh
Author-X-Name-Last: Pham
Title: Is it risky to go green? A volatility analysis of the green bond market
Abstract:
Since its inception in 2007, the green bond market has experienced a compound growth rate of 50% annually. In 2014, green bond issuance totaled USD 36.6 billion, more than threefold its previous year's level of USD 11 billion. This new market is a response to the growing demand of investors for financial investments that are beneficial both environmentally and economically. As the green bond market continues to grow, it is important to obtain a better understanding of the risk and return behavior of the market. This paper is the first to analyze the volatility behavior of the green bond market using data on daily closing prices of the S&P green bond indices between April 2010 and April 2015. Building on a multivariate GARCH framework, my empirical results show that the ‘labeled’ segment of the green bond market experiences large volatility clustering while the pattern of volatility clustering is weaker in the ‘unlabeled’ segment of the market. I also found that a shock in the overall conventional bond market tends to spill over into the green bond market, where this spillover effect is variable over time. These results are meaningful insights into this new, yet very promising market, therefore, have important implications for asset pricing, portfolio management and risk management.
Journal: Journal of Sustainable Finance & Investment
Pages: 263-291
Issue: 4
Volume: 6
Year: 2016
Month: 10
X-DOI: 10.1080/20430795.2016.1237244
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1237244
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:4:p:263-291
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board
Journal: Journal of Sustainable Finance & Investment
Pages: ebi-ebi
Issue: 4
Volume: 6
Year: 2016
Month: 10
X-DOI: 10.1080/20430795.2016.1252119
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1252119
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Handle: RePEc:taf:jsustf:v:6:y:2016:i:4:p:ebi-ebi
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Emerton
Author-X-Name-First: Paul
Author-X-Name-Last: Emerton
Author-Name: Aled Jones
Author-X-Name-First: Aled
Author-X-Name-Last: Jones
Title: Perceptions of the efficacy of sustainability-related performance conditions in executive pay schemes
Abstract:
This paper examines the efficacy of sustainability-related performance conditions in executive pay schemes at listed companies in the U.K. as perceived by the individuals involved in setting those conditions. It will be demonstrated that it is common practice in the U.K. for senior executives to receive part of their pay in the form of bonuses and share awards, the value of which awards will be determined by some degree of performance. The performance targets are generally related to financial performance but there is some evidence that performance conditions are increasingly being related to sustainability in some way. This paper considers a number of issues, including a key systemic issue of whether using incentive pay will have a material impact on the behaviour of U.K. listed companies regarding sustainability issues.
Journal: Journal of Sustainable Finance & Investment
Pages: 1-16
Issue: 1
Volume: 9
Year: 2019
Month: 1
X-DOI: 10.1080/20430795.2018.1498616
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1498616
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:1:p:1-16
Template-Type: ReDIF-Article 1.0
Author-Name: Josué Banga
Author-X-Name-First: Josué
Author-X-Name-Last: Banga
Title: The green bond market: a potential source of climate finance for developing countries
Abstract:
This paper examines the potential of green bonds in mobilizing adaptation and mitigation finance for developing countries. Building upon a theoretical approach, it identifies the key drivers of the green bond market over the last few years and the barriers that impede its appropriation by developing countries. The results suggest that the rise of green bonds is a fact in developed and emerging countries, backed by an increasing climate-awareness from investors. However, in developing countries, the market remains incipient, and its full potential seems to be underappreciated. The lack of appropriate institutional arrangements for green bond management, the issue of minimum size, and high transactions costs associated with green bond issuance, are the key barriers to the development of green bonds in developing countries. In order to cope with these challenges, this paper suggests an efficient use of multilateral and national development banks as intermediary institutions for local green bond management. Furthermore, local governments are required to provide local green bond issuers with guarantees aimed at covering the transaction costs associated with green bond issuance.
Journal: Journal of Sustainable Finance & Investment
Pages: 17-32
Issue: 1
Volume: 9
Year: 2019
Month: 1
X-DOI: 10.1080/20430795.2018.1498617
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1498617
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:1:p:17-32
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Gyimah Sackey
Author-X-Name-First: Frank Gyimah
Author-X-Name-Last: Sackey
Title: Borrower–lender relationship and access to commercial banks’ credit market
Abstract:
The study examined the extent to which borrower–lender relationships affect the rationing behavior of commercial banks in Ghana. A cross-sectional panel data comprising 14 commercial banks were used for the study. Using the classical linear regression model our results showed that borrowers who have long-term relationships with the banks received more credit at reduced interest rates. It was also observed that years of experience in business, gender, age, sector of business, value of assets, profits and loan maturity period were the significant factors influencing the rationing behavior of the commercial banks. The overall results are quiet revealing, and points to the fact that the long-term borrower–lender relationships lead to some level of trust and confidence between the borrower and the lender that comes with its accrued benefits.
Journal: Journal of Sustainable Finance & Investment
Pages: 33-44
Issue: 1
Volume: 9
Year: 2019
Month: 1
X-DOI: 10.1080/20430795.2018.1507130
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1507130
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:1:p:33-44
Template-Type: ReDIF-Article 1.0
Author-Name: Mingyu Fang
Author-X-Name-First: Mingyu
Author-X-Name-Last: Fang
Author-Name: Ken Seng Tan
Author-X-Name-First: Ken Seng
Author-X-Name-Last: Tan
Author-Name: Tony S. Wirjanto
Author-X-Name-First: Tony S.
Author-X-Name-Last: Wirjanto
Title: Sustainable portfolio management under climate change
Abstract:
This paper discusses the management of climate change risks for equity investments and presents a scenario-based framework for building sustainable portfolios under the climate change scheme. An empirical analysis is first performed using historical price data to show the inferior risk-adjusted performance of the carbon-intensive industries in the North American stock market, which supplements evidence from existing literature in the market's gradual pricing of the climate change risk. Risk management modules are devised with subjective top-level constraints to achieve comprehensive coverage of the key aspects of climate change: risk exposures are measured by carbon intensities, while the risk impacts are quantified through equity return impact scenarios derived from climate change paths under Integrated Assessment Models. A model for quantifying stranded asset risk is also presented. Results from these modules formulate the joint posterior return distribution of the stocks that are used to construct the mean-variance optimal portfolio.
Journal: Journal of Sustainable Finance & Investment
Pages: 45-67
Issue: 1
Volume: 9
Year: 2019
Month: 1
X-DOI: 10.1080/20430795.2018.1522583
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1522583
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:1:p:45-67
Template-Type: ReDIF-Article 1.0
Author-Name: Lorenzo Esposito
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Esposito
Author-Name: Giuseppe Mastromatteo
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Mastromatteo
Author-Name: Andrea Molocchi
Author-X-Name-First: Andrea
Author-X-Name-Last: Molocchi
Title: Environment – risk-weighted assets: allowing banking supervision and green economy to meet for good
Abstract:
The 2008 crisis exposed the not-so-benign neglect of systemic risk and financial stability in theoretical analyses as well as in economic and regulatory policies. As the world financial crisis was unfolding, we have also seen a growing awareness of another threat to the world economy: climate change. A connection is emerging between the two aspects with the development of the ‘green and sustainable finance’ paradigm as an essential part of the Paris Agreement on climate change and of the needed transition to a low carbon and green economy. We propose redesigning banking prudential regulation to take into account the environmental dimension of banks riskiness as an additional component of the current prudential framework, based on the calculation and gradual implementation of pollution-based risk coefficients for capital requirements. We present the main methods and suggest practical approaches to develop them. Finally, we test our proposal using available data for Italy, showing how the tool can help to push the banks’ to take into account the environment dimension in their credit policies without disrupting the banking system.
Journal: Journal of Sustainable Finance & Investment
Pages: 68-86
Issue: 1
Volume: 9
Year: 2019
Month: 1
X-DOI: 10.1080/20430795.2018.1540171
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1540171
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:1:p:68-86
Template-Type: ReDIF-Article 1.0
Author-Name: Theodor F. Cojoianu
Author-X-Name-First: Theodor F.
Author-X-Name-Last: Cojoianu
Author-Name: Francisco Ascui
Author-X-Name-First: Francisco
Author-X-Name-Last: Ascui
Title: Developing an evidence base for assessing natural capital risks and dependencies in lending to Australian wheat farms
Abstract:
Farmers are highly dependent on stocks of natural capital, and lenders are in turn exposed to natural capital through their loans to farmers. However, the traditional process for assessing a farmer’s credit risk relies primarily on historical financial data. Banks’ consideration of environmental factors tends to be limited to major risks such as contaminated land liabilities, and to large project and corporate finance, as opposed to the smaller loans typical of the Australian agricultural sector. The relevant risks and dependencies for agriculture vary by sub-sector and geography, and there is a lack of standardised methodologies and evidence to support risk assessment. We provide an evidence base to support natural capital risk assessment for a single sub-sector of Australian agriculture – wheat farming. We show that such an assessment is possible, with a combination of quantitative and qualitative inputs, but the complexity and interconnectedness of natural capital processes is a challenge, particularly for soil health.
Journal: Journal of Sustainable Finance & Investment
Pages: 95-113
Issue: 2
Volume: 8
Year: 2018
Month: 4
X-DOI: 10.1080/20430795.2017.1375776
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1375776
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:2:p:95-113
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Diaz-Serrano
Author-X-Name-First: Luis
Author-X-Name-Last: Diaz-Serrano
Author-Name: Frank G. Sackey
Author-X-Name-First: Frank G.
Author-X-Name-Last: Sackey
Title: Microfinance and credit rationing: does the microfinance type matter?
Abstract:
This study sets out to examine the extent to which access to credit and credit rationing are influenced by the microfinance type based on the major factors determining micro, small and medium enterprises’ access to credit from microfinance institutions in the era of financial liberalization. The data for the study were gleaned from the microfinance companies’ credit and loan records consisting of the various pieces of information provided by the borrowers in the application process. Our results are puzzling and show that credit rationing is not influenced by the microfinance types but by the individual microfinance companies. Our results also show that the Government microfinance company is the least severe in the rationing behavior.
Journal: Journal of Sustainable Finance & Investment
Pages: 114-131
Issue: 2
Volume: 8
Year: 2018
Month: 4
X-DOI: 10.1080/20430795.2017.1403181
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1403181
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:2:p:114-131
Template-Type: ReDIF-Article 1.0
Author-Name: Gregor Dorfleitner
Author-X-Name-First: Gregor
Author-X-Name-Last: Dorfleitner
Author-Name: Sebastian Utz
Author-X-Name-First: Sebastian
Author-X-Name-Last: Utz
Author-Name: Maximilian Wimmer
Author-X-Name-First: Maximilian
Author-X-Name-Last: Wimmer
Title: Patience pays off – corporate social responsibility and long-term stock returns
Abstract:
This paper presents new evidence on the implications of corporate social responsibility (CSR) on stock returns. By implementing a long-term focus as well as using subdivided measures for CSR, we cater to the intangible nature and the heterogeneity of CSR activities. We use a novel classification of these activities into nine areas, each belonging to one of the standard environment, social, and governance (ESG) dimensions. Using cross-sectional return regressions and buy-and-hold abnormal returns, we find that firms with strong CSR significantly outperform firms with weak CSR in the mid and long run in certain areas. Firm returns increase up to 3.8% with respect to a one-standard-deviation increase of the CSR rating. In a two-stage least squares (2SLS) approach we verify that the main economic channel for the appreciation of strong CSR stocks is unexpected additional cash flows. The results are relevant for assessing the efficiency of CSR, and have broader implications for asset managers who can expect abnormal returns by investing in firms that exhibit a high CSR in the respective scores and holding the stocks for a longer period.
Journal: Journal of Sustainable Finance & Investment
Pages: 132-157
Issue: 2
Volume: 8
Year: 2018
Month: 4
X-DOI: 10.1080/20430795.2017.1403272
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1403272
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:2:p:132-157
Template-Type: ReDIF-Article 1.0
Author-Name: T. E. Lambooy
Author-X-Name-First: T. E.
Author-X-Name-Last: Lambooy
Author-Name: K. E. H. Maas
Author-X-Name-First: K. E. H.
Author-X-Name-Last: Maas
Author-Name: S. van ‘t Foort
Author-X-Name-First: S.
Author-X-Name-Last: van ‘t Foort
Author-Name: R. van Tilburg
Author-X-Name-First: R.
Author-X-Name-Last: van Tilburg
Title: Biodiversity and natural capital: investor influence on company reporting and performance
Abstract:
This paper presents the results of a multidisciplinary qualitative study concerning the influence of investors on the performance and dependencies of companies in relation to biodiversity and natural capital (BNC). For BNC, we employ four indicators: land use, water use, chemical pollution and carbon emissions. The study assesses: (i) in which way asset managers and fund managers exert influence on the efforts of companies to reduce their negative environmental impact and to improve their positive environmental impact; (ii) how this influence is perceived by the companies; and (iii) to what extent legislation requiring reporting on non-financial performance criteria supports the parties in their engagement and communication. Interviews were conducted with multiple investors and companies to assess in a detailed way the interaction between these parties.Key findings include that BNC is considered material by half of all interviewed investors, that they employ available legal options in their engagement strategies, and that they use the information disclosed by investee companies pursuant to mandatory reporting law. However, company respondents indicate that investors are only interested in BNC when it is clearly and directly linked to (reduced) financial risks. These respondents stated that BNC performance as well as transparency strategies do not have any material influence on investors. Another central issue flagged by respondents is the lack of comparable and standardised information regarding BNC themes such as corporate water use, land use and chemicals. Common methodologies and standards to tackle these issues are still missing.Based on our findings, it can be concluded that tangible strategies for successfully tackling BNC issues are absent. The approaches developed so far are not clearly enough linked to (financial) risks and opportunities in the past, present or future. The perceived effect of EU Directive 2014/95 on tackling BNC issues is also low and environmental profit & loss accounts are unable to clarify the financial relevance of BNC. Establishment of a clear nexus between BNC and financial risks and opportunities is a necessary precondition to advance BNC in future.
Journal: Journal of Sustainable Finance & Investment
Pages: 158-184
Issue: 2
Volume: 8
Year: 2018
Month: 4
X-DOI: 10.1080/20430795.2017.1409524
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1409524
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:2:p:158-184
Template-Type: ReDIF-Article 1.0
Author-Name: John Byrd
Author-X-Name-First: John
Author-X-Name-Last: Byrd
Author-Name: Elizabeth S. Cooperman
Author-X-Name-First: Elizabeth S.
Author-X-Name-Last: Cooperman
Title: Investors and stranded asset risk: evidence from shareholder responses to carbon capture and sequestration (CCS) events
Abstract:
To avoid catastrophic climate change risk, the case for fossil fuel reserves not being burned has become stronger. This is particularly the case for coal, as the highest emitter of CO2 per unit of energy, with large portions of coal reserves likely to become stranded assets, posing significant risk to investors. Technology in the past has come to the rescue, so investor valuations may depend on perceptions for the success of technology in reducing stranded asset risk. We examine whether coal company shareholders perceive coal as a technologically stranded asset by studying shareholder reactions to news about CCS (carbon capture and sequestration) technology breakthroughs and setbacks. We find significant positive reactions to CCS breakthroughs, but no reaction for setbacks. This suggests investors have embedded expectations of stranded asset risk into their valuations, but also recognize the significance of successful CCS technology development and deployment for the economic prospects of the coal industry.
Journal: Journal of Sustainable Finance & Investment
Pages: 185-202
Issue: 2
Volume: 8
Year: 2018
Month: 4
X-DOI: 10.1080/20430795.2017.1418063
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1418063
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:2:p:185-202
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew W. Sherwood
Author-X-Name-First: Matthew W.
Author-X-Name-Last: Sherwood
Author-Name: Julia L. Pollard
Author-X-Name-First: Julia L.
Author-X-Name-Last: Pollard
Title: The risk-adjusted return potential of integrating ESG strategies into emerging market equities
Abstract:
This study purposed to quantify the performance potential of integrating ESG research within emerging market investment strategies, as well as the potential for risk diversification through investments in emerging markets. This study evaluated literature on investing in both emerging markets and integrating environmental, social, and governance (ESG) research-based strategies. This study examines real data on ESG and non-ESG integrated emerging market indices, both region-specific and country-specific. This examination includes measuring historical returns, beta, the Sharpe ratio, the Sortino ratio, the Conditional Value at Risk, skewness, and the Omega ratio for ESG and non-ESG integrated emerging market indices. Paired t-test analysis is incorporated in the measurement of the data. The results of the study indicate significant outperformance based on ESG integration. The implications of this study indicate that integrating ESG emerging market equities into institutional portfolios could provide institutional investors the opportunity for higher returns and lower downside risk than non-ESG equity investments.
Journal: Journal of Sustainable Finance & Investment
Pages: 26-44
Issue: 1
Volume: 8
Year: 2018
Month: 1
X-DOI: 10.1080/20430795.2017.1331118
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1331118
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:1:p:26-44
Template-Type: ReDIF-Article 1.0
Author-Name: Markus Arnold
Author-X-Name-First: Markus
Author-X-Name-Last: Arnold
Author-Name: Alexander Bassen
Author-X-Name-First: Alexander
Author-X-Name-Last: Bassen
Author-Name: Ralf Frank
Author-X-Name-First: Ralf
Author-X-Name-Last: Frank
Title: Timing effects of corporate social responsibility disclosure: an experimental study with investment professionals
Abstract:
Companies disclose increasingly more corporate social responsibility (CSR) related information. However, CSR information is not always treated entirely rationally by capital market participants. In an experiment using experienced investment professionals, we investigate how the timing of CSR disclosure influences firm valuations by professional investors. The results suggest that CSR disclosure in a stand-alone report, temporally disconnected to firm’s financial disclosure, may lead to asymmetric anchoring, whereby simultaneous disclosure of CSR and financial information in an integrated report prevents anchoring in investors’ judgement. Investors’ asymmetric anchoring is induced by differences in cognitive effort invested in CSR information processing, which depends on whether CSR information signals future profits or losses. Our results contribute to the debate on disclosure standards for CSR information and the use of CSR information by professional investors.
Journal: Journal of Sustainable Finance & Investment
Pages: 45-71
Issue: 1
Volume: 8
Year: 2018
Month: 1
X-DOI: 10.1080/20430795.2017.1368229
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1368229
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:1:p:45-71
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Migliorelli
Author-X-Name-First: Marco
Author-X-Name-Last: Migliorelli
Author-Name: Philippe Dessertine
Author-X-Name-First: Philippe
Author-X-Name-Last: Dessertine
Title: Time for new financing instruments? A market-oriented framework to finance environmentally friendly practices in EU agriculture
Abstract:
We observe that the actual system of support to agriculture in Europe neglects many of the existing and potential interactions in the financing chain and, for this reason, remains scarcely participated in by institutional investors. In an attempt to overcome this issue, this paper provides a theoretical framework for a market-oriented financing of agriculture in the EU, with particular emphasis on environmentally friendly practices. In more detail, the paper identifies the conditions for implementing a comprehensive originate-and-distribute securitisation mechanism for environmental loans backed by a general public guarantee. The discussion provided allows the identification of the main gaps between the target financing infrastructure and the instruments currently available in the market. In this respect, two elements would deserve a specific implementation. First, an integrated policy programme able to leverage the public spending though a balance of grants (which should support only unprofitable environmentally friendly practices) and external credit enhancer in the securitisation mechanism. Second, a specialised data set able to provide reliable environmental and financial performance indicators on different environmentally friendly investments to farmers, intermediaries and institutional investors.
Journal: Journal of Sustainable Finance & Investment
Pages: 1-25
Issue: 1
Volume: 8
Year: 2018
Month: 1
X-DOI: 10.1080/20430795.2017.1376270
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1376270
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:1:p:1-25
Template-Type: ReDIF-Article 1.0
Author-Name: Ick Jin
Author-X-Name-First: Ick
Author-X-Name-Last: Jin
Title: Is ESG a systematic risk factor for US equity mutual funds?
Abstract:
On the outperformance of responsible investing (RI) which incorporates environmental, social, and governance (ESG) into investment decisions, the empirical evidence to date is inconsistent from the viewpoint of ex-post performance. This paper tries to explain the nature of return differential between RI and conventional investing within the well-known risk-return paradigm. From the viewpoint of ex-ante equity risk premium, the five factor model of Fama and French [2015. “A Five-factor Asset Pricing Model.” Journal of Financial Economics 116: 1–22] combined with a ESG-related factor applies to returns on 1,425 US open-end equity funds for the period from April 2009 to December 2016. Empirical findings include that US open-end equity funds tend to hedge the ESG-related systematic risk, and that the exposure to ESG-related systematic risk is significantly priced in the market. The result implies that RI provides the downside protection against ESG-related systematic risk which is not reduced even through extensive diversification.
Journal: Journal of Sustainable Finance & Investment
Pages: 72-93
Issue: 1
Volume: 8
Year: 2018
Month: 1
X-DOI: 10.1080/20430795.2017.1395251
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1395251
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Handle: RePEc:taf:jsustf:v:8:y:2018:i:1:p:72-93
Template-Type: ReDIF-Article 1.0
Author-Name: Ick Jin
Author-X-Name-First: Ick
Author-X-Name-Last: Jin
Author-Name: Yunhee Kim
Author-X-Name-First: Yunhee
Author-X-Name-Last: Kim
Title: Analysis of the impact of achieving NDC on public climate finance
Abstract:
This paper presents the necessity of having sufficient finances to implement measures contained within Nationally Determined Contributions (NDCs). Based on a dynamic model to capture the link between emissions and government budget balance, our analysis estimates the cost associated with implementing emission-reducing policy. It also measures the gap between what is likely to be funded through existing resources, and what needs to be supplemented through climate finance. For that purpose, an international comparison analysis has been conducted to quantify public climate finance needs for each country. Using panel data for 40 countries over the period of 1998–2012, the empirical results show that economic growth and commensurate greenhouse gas emissions generate budgetary surpluses, and that these surpluses must be offset by public climate finance if countries are to reduce emissions commensurate with their NDCs. It further suggests that this is particularly a challenge for developing countries (notably, the BRIICS). The approach of this paper provides a method for determining the actual amount of public finance required to offset the budgetary shortfall from the climate finance pledged under the Paris Agreement. It is imperative to quantify the extent to which each of the developing countries needs to receive international financial support.
Journal: Journal of Sustainable Finance & Investment
Pages: 309-334
Issue: 4
Volume: 7
Year: 2017
Month: 10
X-DOI: 10.1080/20430795.2016.1275934
File-URL: http://hdl.handle.net/10.1080/20430795.2016.1275934
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:4:p:309-334
Template-Type: ReDIF-Article 1.0
Author-Name: Aidy Halimanjaya
Author-X-Name-First: Aidy
Author-X-Name-Last: Halimanjaya
Title: Climate mitigation finance in leveraging private investments in Indonesia
Abstract:
This paper identifies and reviews arrangements by which climate mitigation finance taken from official development assistance (ODA) is used to leverage private-sector investment in Indonesia’s greenhouse gas (GHG) emission reduction. It analyses eleven principal mitigation projects taken from 2010–2015 OECD Creditor Reporting System data, using an institutional analysis and development framework. The results show that within Indonesia’s complex private-sector history and strong patronage system, mitigation finance has been deployed to support a number of early engagement activities with the private sector at the policy and administrative levels, with a less focus on the political level. Engagements to leverage private investment are initially made through research, prefeasibility studies and capacity-building. At later stages, mitigation finance offers the private sector opportunities to undertake pilot activities. Some pilot activities have had successful outcomes, with private sector entities acting as co-financiers and self-investors in large-scale infrastructure projects via arrangements such as public-private partnerships. Greater understanding of the history and political context of Indonesia’s private sector is expected to improve donor and recipient strategies for leveraging private investment in risky projects, developing bankable business plans as well as providing accountability for the use of public finance in business-related international development activities.
Journal: Journal of Sustainable Finance & Investment
Pages: 335-359
Issue: 4
Volume: 7
Year: 2017
Month: 10
X-DOI: 10.1080/20430795.2017.1318461
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1318461
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:4:p:335-359
Template-Type: ReDIF-Article 1.0
Author-Name: Johnson Kakeu
Author-X-Name-First: Johnson
Author-X-Name-Last: Kakeu
Title: Environmentally conscious investors and portfolio choice decisions
Abstract:
This paper presents a financial economic model that analyzes the effects of integrating environmental concerns into investment portfolios in capital markets. The environmentally conscious investor's expected rate of return on equity is shown to incorporate an environmental risk premium. Both the investors' degree of concern for environmental externalities and the environmental risk profile of a company are crucial for understanding why companies whose equity values are positively correlated with stricter environmental regulations exhibit a lower cost of equity capital. A closed-form solution to the environmentally-concerned investor is derived, offering insights into how the optimal portfolio relates to both the degree of concern for environmental externalities and the environmental risk profile of an equity stock.
Journal: Journal of Sustainable Finance & Investment
Pages: 360-378
Issue: 4
Volume: 7
Year: 2017
Month: 10
X-DOI: 10.1080/20430795.2017.1326454
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1326454
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:4:p:360-378
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board
Journal: Journal of Sustainable Finance & Investment
Pages: ebi-ebi
Issue: 4
Volume: 7
Year: 2017
Month: 10
X-DOI: 10.1080/20430795.2017.1371270
File-URL: http://hdl.handle.net/10.1080/20430795.2017.1371270
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Handle: RePEc:taf:jsustf:v:7:y:2017:i:4:p:ebi-ebi
Template-Type: ReDIF-Article 1.0
Author-Name: Jahel Mielke
Author-X-Name-First: Jahel
Author-X-Name-Last: Mielke
Title: Signals for 2°C: the influence of policies, market factors and civil society actions on investment decisions for green infrastructure
Abstract:
The targets of the Paris Agreement make it necessary to redirect finance flows towards sustainable, low-carbon infrastructures and technologies. Currently, the potential of institutional investors to help finance this transition is widely discussed. Thus, this paper takes a closer look at influence factors for green investment decisions of large European insurance companies. With a mix of qualitative and quantitative methods, the importance of policy, market and civil society signals is evaluated. In summary, respondents favor measures that promote green investment, such as feed-in tariffs or adjustments of capital charges for green assets, over ones that make carbon-intensive investments less attractive, such as the phase-out of fossil fuel subsidies or a carbon price. While investors currently see a low impact of the carbon price, they rank a substantial reform as an important signal for the future. Respondents also emphasize that policy signals have to be coherent and credible to coordinate expectations.
Journal: Journal of Sustainable Finance & Investment
Pages: 87-115
Issue: 2
Volume: 9
Year: 2019
Month: 4
X-DOI: 10.1080/20430795.2018.1528809
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1528809
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:2:p:87-115
Template-Type: ReDIF-Article 1.0
Author-Name: Gordon L. Clark
Author-X-Name-First: Gordon L.
Author-X-Name-Last: Clark
Title: The allocation of risk and uncertainty in green infrastructure investment with implications for climate change policy
Abstract:
In an era of rising national indebtedness, the public sector is increasingly reliant upon private financial interests for the provision and maintenance of infrastructure. The focus of this paper is upon the allocation of risk and uncertainty between infrastructure investors and between investors and the public. Drawing upon a functional definition of infrastructure and the principles and practices underpinning infrastructure investment, this logic is applied to green infrastructure and a case study of the ‘big battery’ in South Australia. It is shown how and why private investors may demand that the public sector bear the costs of infrastructure that fall outside of the ‘normal’ risks obtaining when private capital is put to work to provide collective value. This has significant implications for investing in climate change infrastructure.
Journal: Journal of Sustainable Finance & Investment
Pages: 116-137
Issue: 2
Volume: 9
Year: 2019
Month: 4
X-DOI: 10.1080/20430795.2018.1558043
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1558043
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:2:p:116-137
Template-Type: ReDIF-Article 1.0
Author-Name: M. Chiesa
Author-X-Name-First: M.
Author-X-Name-Last: Chiesa
Author-Name: S. Barua
Author-X-Name-First: S.
Author-X-Name-Last: Barua
Title: The surge of impact borrowing: the magnitude and determinants of green bond supply and its heterogeneity across markets
Abstract:
Green bonds could play a key role in financing the investment needed to achieve the global climate and energy objectives and the UN Sustainable Development Goals. Using Bloomberg data of corporate green bond issuance from 2010 to 2017, we explore the factors affecting the size of borrowing. By employing a set of tri-dimensional elements (security characteristics, issuer characteristics, and market characteristics), we investigate the consistency of the effects across emerging and non-emerging markets. Findings suggest that, in general, issue size is positively related coupon rate, credit rating, collateral availability, and issuer’s sector and financial health. Moreover, issuances in emerging markets with a more international orientation and denominated in EURO, have a higher size. Arguably, these features make bonds more reliable, secured, and return-generating for investors, which facilitates higher issue size through greater investor demand. The paper calls for policies and incentives to encourage impact borrowing through increased green bond supply.
Journal: Journal of Sustainable Finance & Investment
Pages: 138-161
Issue: 2
Volume: 9
Year: 2019
Month: 4
X-DOI: 10.1080/20430795.2018.1550993
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1550993
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:2:p:138-161
Template-Type: ReDIF-Article 1.0
Author-Name: Camila Yamahaki
Author-X-Name-First: Camila
Author-X-Name-Last: Yamahaki
Title: Responsible Investment and the institutional works of investor associations
Abstract:
This study examines how investor associations encourage Responsible Investment behaviour in Brazil and South Africa. Based on 44 semi-structured interviews with pension fund representatives, asset managers and other investment players, our evidence suggests that investor associations promote Responsible Investment by deploying three types of institutional work: they educate by improving investor awareness of Responsible Investment; they embed normative foundations into daily practices by offering Responsible Investment tools for ESG integration and by providing a forum for investors to engage collaboratively with investee companies; and they disconnect sanctions from rules by clarifying legislation on investor concerted action. Through highlighting the meaningful role of investor associations supporting their members to understand and integrate ESG issues, and encouraging collaborative engagements, this article adds to the literature on institutional work explaining responsible behaviour, and it offers insights to investor bodies in other nations interested in fostering Responsible Investment practices in their own countries.
Journal: Journal of Sustainable Finance & Investment
Pages: 162-181
Issue: 2
Volume: 9
Year: 2019
Month: 4
X-DOI: 10.1080/20430795.2018.1558029
File-URL: http://hdl.handle.net/10.1080/20430795.2018.1558029
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Handle: RePEc:taf:jsustf:v:9:y:2019:i:2:p:162-181
Template-Type: ReDIF-Article 1.0
Author-Name: Dina Azhgaliyeva
Author-X-Name-First: Dina
Author-X-Name-Last: Azhgaliyeva
Author-Name: Brantley Liddle
Author-X-Name-First: Brantley
Author-X-Name-Last: Liddle
Title: Introduction to the special issue: Scaling Up Green Finance in Asia
Journal: Journal of Sustainable Finance & Investment
Pages: 83-91
Issue: 2
Volume: 10
Year: 2020
Month: 4
X-DOI: 10.1080/20430795.2020.1736491
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1736491
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:2:p:83-91
Template-Type: ReDIF-Article 1.0
Author-Name: Aziz Durrani
Author-X-Name-First: Aziz
Author-X-Name-Last: Durrani
Author-Name: Masyitah Rosmin
Author-X-Name-First: Masyitah
Author-X-Name-Last: Rosmin
Author-Name: Ulrich Volz
Author-X-Name-First: Ulrich
Author-X-Name-Last: Volz
Title: The role of central banks in scaling up sustainable finance – what do monetary authorities in the Asia-Pacific region think?
Abstract:
This article presents the findings of a survey among 18 central banks from the Asia-Pacific region regarding their views on approaches to scale up sustainable finance and develop policies to address climate and environmental risks. It also reviews recent developments in selected Asia-Pacific countries to illustrate actions monetary and financial authorities have already taken to address climate and environmental risk, and in scaling up sustainable finance. The survey results show that this is a topic of increasing importance and relevance to monetary authorities in the region. The vast majority of survey respondents believe that they should be playing a key role in promoting green finance and sustainable funding options, either through amending the regulatory framework, encouraging green loans and products or by introducing climate change considerations in their monetary and financial policy operations.
Journal: Journal of Sustainable Finance & Investment
Pages: 92-112
Issue: 2
Volume: 10
Year: 2020
Month: 4
X-DOI: 10.1080/20430795.2020.1715095
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1715095
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:2:p:92-112
Template-Type: ReDIF-Article 1.0
Author-Name: Dina Azhgaliyeva
Author-X-Name-First: Dina
Author-X-Name-Last: Azhgaliyeva
Author-Name: Anant Kapoor
Author-X-Name-First: Anant
Author-X-Name-Last: Kapoor
Author-Name: Yang Liu
Author-X-Name-First: Yang
Author-X-Name-Last: Liu
Title: Green bonds for financing renewable energy and energy efficiency in South-East Asia: a review of policies
Abstract:
Mobilizing private finance for renewable energy and energy efficiency is critical for Association of South-East Asian Nations (ASEAN) not only for the reduction of global temperature rise but also for meeting fast-growing energy demand. Two-thirds of green bonds issued in ASEAN were used to finance renewable energy and energy efficiency projects. This paper provides a review of green bond issuance and green bond policies in ASEAN. Issuance of green bonds in top three green bond issuing countries in ASEAN, i.e. Indonesia, Malaysia and Singapore, are reviewed in detail. Green bond policies in ASEAN are effective in promoting green bond issuance. However, this does not mean that green bond policies are effective in promoting renewable energy and energy efficiency projects in ASEAN. Proceedings of green bonds issued in ASEAN can be used for financing projects abroad or re-financing past loans, thus do not necessarily promote green investments in ASEAN.
Journal: Journal of Sustainable Finance & Investment
Pages: 113-140
Issue: 2
Volume: 10
Year: 2020
Month: 4
X-DOI: 10.1080/20430795.2019.1704160
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1704160
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:2:p:113-140
Template-Type: ReDIF-Article 1.0
Author-Name: Hao Zhang
Author-X-Name-First: Hao
Author-X-Name-Last: Zhang
Title: Regulating green bond in China: definition divergence and implications for policy making
Abstract:
China has become a significant player in the green bond market globally after the issuance of the first green bond in China in 2015. Given the nascency of the green bond market in China, there are still two main questions that remain under-researched in the relevant scholarship. The first question relates to whether the multiple definitions of green bonds and its eligible use of proceeds under the Chinese regulations are consistent with the international standards. The second question centres on the degree of divergence of the transparency requirements under the Chinese regulations themselves. Using doctrinal and comparative analysis, this article discovers that, despite the generally consistent definitions of green bond under the Chinese regulations, there are still some slight differences in terms of eligible uses of proceeds and information disclosure. Potentially these differences may affect the lender’s investment assessment and their decision-making of whether to provide financing to the issuer.
Journal: Journal of Sustainable Finance & Investment
Pages: 141-156
Issue: 2
Volume: 10
Year: 2020
Month: 4
X-DOI: 10.1080/20430795.2019.1706310
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1706310
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:2:p:141-156
Template-Type: ReDIF-Article 1.0
Author-Name: James Guild
Author-X-Name-First: James
Author-X-Name-Last: Guild
Title: The political and institutional constraints on green finance in Indonesia
Abstract:
The ADB estimates Asia’s infrastructure needs from 2016 to 2030 will exceed US $26 trillion. This ballooning demand for infrastructure, coupled with rising investor awareness of the importance of sustainable development, is driving the nascent green finance sector. In emerging markets, raising capital for green projects is often the easy part; identifying and implementing suitable projects and structuring the financing is more challenging. This paper draws on the school of institutional economics to analyse the potential of green finance in underwriting renewable energy development in Indonesia. The paper argues that even if there is strong demand on capital markets for green bonds backing clean energy projects, the institutional design of the renewable energy sector has created a misaligned incentive structure for Indonesia’s political class. The paper concludes by discussing Ministerial Regulation 50/2017 which has created a regulatory framework that side-steps some of these constraints.
Journal: Journal of Sustainable Finance & Investment
Pages: 157-170
Issue: 2
Volume: 10
Year: 2020
Month: 4
X-DOI: 10.1080/20430795.2019.1706312
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1706312
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:2:p:157-170
Template-Type: ReDIF-Article 1.0
Author-Name: Kanika Chawla
Author-X-Name-First: Kanika
Author-X-Name-Last: Chawla
Author-Name: Manu Aggarwal
Author-X-Name-First: Manu
Author-X-Name-Last: Aggarwal
Author-Name: Arjun Dutt
Author-X-Name-First: Arjun
Author-X-Name-Last: Dutt
Title: Analysing the falling solar and wind tariffs: evidence from India
Abstract:
India needs to accelerate its solar and wind energy capacity addition in order to meet its renewable energy (RE) targets. Besides policy commitments, the cost-competitiveness of RE tariffs facilitates the uptake of renewable power. This paper focuses on the major determinants of RE tariffs, disaggregating the impact of equipment-related factors and financing costs (costs of debt and equity). The paper finds that financing costs account for the largest component – over 50% of RE tariffs. Further, equipment-related factors have been the major drivers of tariff reduction historically, accounting for 73% of the solar tariff reduction between January 2016 and May 2017. However, the paper demonstrates that there could be a role reversal – changes in financing costs could drive future declines in both solar and wind tariffs. This necessitates the de-risking of these sectors through suitable policy- and market-led interventions in order to lower financing costs.
Journal: Journal of Sustainable Finance & Investment
Pages: 171-190
Issue: 2
Volume: 10
Year: 2020
Month: 4
X-DOI: 10.1080/20430795.2019.1706313
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1706313
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:2:p:171-190
Template-Type: ReDIF-Article 1.0
Author-Name: Mobeen Ur Rehman
Author-X-Name-First: Mobeen Ur
Author-X-Name-Last: Rehman
Author-Name: Xuan-Vinh Vo
Author-X-Name-First: Xuan-Vinh
Author-X-Name-Last: Vo
Title: Is a portfolio of socially responsible firms profitable for investors?
Abstract:
This paper investigates the presence of integration between six socially responsible stocks for the purpose of portfolio composition. Data for our study are based on the daily frequency and range from March 2016 to April 2019. Our results highlight that Gender Diversity funds exhibit a low correlation pattern with Low Carbon, Social Choice and USA ESG funds, whereas the Social Choice equity demonstrates a low correlation pattern with USA ESG and Social ETF funds across all decomposed scales. These results are also supported by the findings of non-linear Granger causality test across all investment horizons, i.e. from D1 to D8. Our results imply the inclusion of different asset classes together with socially responsible funds in a portfolio which may have useful implications for investors.Research Highlights
We investigate the co-movement between socially responsible funds returns.We decompose the correlation between socially responsible funds using maximal overlap discrete wavelet transformation (MODWT).Decomposed correlations are further captured using the multi-scale rolling window wavelet coherenceNon-linear Granger causality is applied to infer implications for risk spillover under short-, medium- and long-run investment horizons.Results suggest that the inclusion of different asset classes together with socially responsible funds can yield optimal returns.
Journal: Journal of Sustainable Finance & Investment
Pages: 191-212
Issue: 2
Volume: 10
Year: 2020
Month: 4
X-DOI: 10.1080/20430795.2019.1700722
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1700722
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:2:p:191-212
Template-Type: ReDIF-Article 1.0
Author-Name: Kim Schumacher
Author-X-Name-First: Kim
Author-X-Name-Last: Schumacher
Author-Name: Hugues Chenet
Author-X-Name-First: Hugues
Author-X-Name-Last: Chenet
Author-Name: Ulrich Volz
Author-X-Name-First: Ulrich
Author-X-Name-Last: Volz
Title: Sustainable finance in Japan
Abstract:
This article examines the role of sustainable finance and investment in Japan and how the Japanese financial sector can mitigate growing climate risks and support Japan's transition towards a zero-carbon, sustainable economy. It first illustrates Japan’s exposure to physical and transitional climate risks before reviewing emerging practices in sustainable finance. These include the growing importance of environmental, social, and governance (ESG) criteria in financial decision-making; more rigid reporting and disclosure standards; and the development of green bond and sustainable investment markets. The article also assesses the role of policies and regulations in scaling up sustainable finance and low-carbon infrastructure investments. Subsequently, it analyses transitional climate risks via scenario analysis, applying the Paris Agreement Capital Transition Assessment (PACTA) tool to examine the exposure of subsectors of the Japanese equity market over several climate scenarios. The article concludes with policy recommendations for aligning Japan’s financial sector with global climate and sustainability goals.
Journal: Journal of Sustainable Finance & Investment
Pages: 213-246
Issue: 2
Volume: 10
Year: 2020
Month: 4
X-DOI: 10.1080/20430795.2020.1735219
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1735219
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:2:p:213-246
Template-Type: ReDIF-Article 1.0
Author-Name: Hibba Saeed
Author-X-Name-First: Hibba
Author-X-Name-Last: Saeed
Author-Name: Ahsin Shahid
Author-X-Name-First: Ahsin
Author-X-Name-Last: Shahid
Author-Name: S. Muhammad Ali Tirmizi
Author-X-Name-First: S. Muhammad Ali
Author-X-Name-Last: Tirmizi
Title: An empirical investigation of banking sector performance of Pakistan and Sri Lanka by using CAMELS ratio of framework
Abstract:
This study has been initiated to evaluate the impact of CAMELS Ratio on performance of banking sector in terms of Efficiency. In this study financial ratios, including Capital Adequacy (CA), Asset Quality (AQ), Management Soundness (MS), Earnings, Liquidity (LR) and Sensitivity to market risk (SR) collectively termed as CAMELS ratio, have been applied to evaluate the performance of Pakistani and Sri Lankan banking sector in terms of Efficiency and empirical significance in terms of Panel regression model. Therefore, pooled data of all the banks operating in Pakistan and Sri Lanka from 2008 to 2016 have been employed. The empirical results of GLS, time-fixed and random-fixed effect model estimation after the application of Hausman Test revealed that the random-effects model has been preferred over the fixed-effect model. The empirical analyses also indicate that all of the variables turned significant in their association with the efficiency of the banking sectors of both countries, these are CA, AQ, LR, MS, Return on Equity (ROE) and Return on Assets (ROA) (Earnings), but SR is insignificant but positively associated with the efficiency. However, these results also confirm from the previous studies.
Journal: Journal of Sustainable Finance & Investment
Pages: 247-268
Issue: 3
Volume: 10
Year: 2020
Month: 7
X-DOI: 10.1080/20430795.2019.1673140
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1673140
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:3:p:247-268
Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahem Alshbili
Author-X-Name-First: Ibrahem
Author-X-Name-Last: Alshbili
Author-Name: Ahmed A. Elamer
Author-X-Name-First: Ahmed A.
Author-X-Name-Last: Elamer
Title: The influence of institutional context on corporate social responsibility disclosure: a case of a developing country
Abstract:
In this paper, we examine the influence of the institutional environment on the adoption of Corporate Social Responsibility Disclosure (CSRD) in Libya. In doing so, we use isomorphism as a neo-institutionalist theoretical construction that explores whether institutional factors act as pressures for CSRD practices. Using a qualitative method, the findings show that, despite managers perceive some coercive, mimetic and normative pressures interplay to influence CSRD, the revision of the firms’ laws and policies and the establishment of CSRD regulations and monitoring institutions should be established and undertaken to improve accounting disclosure. The results propose important implications for adapting CSRD for firms and policy-makers in developing countries.
Journal: Journal of Sustainable Finance & Investment
Pages: 269-293
Issue: 3
Volume: 10
Year: 2020
Month: 7
X-DOI: 10.1080/20430795.2019.1677440
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1677440
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:3:p:269-293
Template-Type: ReDIF-Article 1.0
Author-Name: Sondre R. Fiskerstrand
Author-X-Name-First: Sondre R.
Author-X-Name-Last: Fiskerstrand
Author-Name: Susanne Fjeldavli
Author-X-Name-First: Susanne
Author-X-Name-Last: Fjeldavli
Author-Name: Thomas Leirvik
Author-X-Name-First: Thomas
Author-X-Name-Last: Leirvik
Author-Name: Yevheniia Antoniuk
Author-X-Name-First: Yevheniia
Author-X-Name-Last: Antoniuk
Author-Name: Oleg Nenadić
Author-X-Name-First: Oleg
Author-X-Name-Last: Nenadić
Title: Sustainable investments in the Norwegian stock market
Abstract:
This article investigates the link between environmental, social and corporate governance (ESG) ratings and financial performance in the Norwegian stock market. Using Norwegian stock data, we rank companies based on their sensitivity and exposure (beta) toward ESG factors from 2009 to 2018 using the Dow Jones Sustainability Nordic Index. The econometric framework applies a portfolio strategy, as well as a cross-sectional regression. The constructed ESG portfolios do not show any significant return difference based on a high-low strategy, which is robust for market sensitivity, investment style, and industry bias. Regarding the explanatory power and pricing of the ESG factor, we find no supporting evidence. Our results do not suggest any connection between ESG and stock returns in the Norwegian stock market.
Journal: Journal of Sustainable Finance & Investment
Pages: 294-310
Issue: 3
Volume: 10
Year: 2020
Month: 7
X-DOI: 10.1080/20430795.2019.1677441
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1677441
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:3:p:294-310
Template-Type: ReDIF-Article 1.0
Author-Name: Ian Robertson
Author-X-Name-First: Ian
Author-X-Name-Last: Robertson
Title: Principles of sustainable finance
Journal: Journal of Sustainable Finance & Investment
Pages: 311-313
Issue: 3
Volume: 10
Year: 2020
Month: 7
X-DOI: 10.1080/20430795.2020.1717241
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1717241
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Handle: RePEc:taf:jsustf:v:10:y:2020:i:3:p:311-313
Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Bernardini
Author-X-Name-First: Enrico
Author-X-Name-Last: Bernardini
Author-Name: Johnny Di Giampaolo
Author-X-Name-First: Johnny
Author-X-Name-Last: Di Giampaolo
Author-Name: Ivan Faiella
Author-X-Name-First: Ivan
Author-X-Name-Last: Faiella
Author-Name: Riccardo Poli
Author-X-Name-First: Riccardo
Author-X-Name-Last: Poli
Title: The impact of carbon risk on stock returns: evidence from the European electric utilities
Abstract:
The decarbonization process has made obsolete the traditional value-creation model of companies operating in the electricity sector, particularly affecting those with a greater share of fossil fuels in their energy mix that have been forced to write down their carbon-intensive activities with a negative impact on operating income, equity and leverage. Institutional investors have a significant exposure to equity and debt of European Electric Utilities: if the transition process towards a low-carbon system is faster than expected, the risk that these weaknesses may spread across the financial system shouldn’t be underestimated. Analyses based on risk-premium factor models show that there was a significant low-carbon premium during the years in which the decarbonization process accelerated; in the period considered, an investment strategy that focused more on low-carbon companies would have delivered higher returns without modifying the overall risk profile.
Journal: Journal of Sustainable Finance & Investment
Pages: 1-26
Issue: 1
Volume: 11
Year: 2021
Month: 1
X-DOI: 10.1080/20430795.2019.1569445
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1569445
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:1:p:1-26
Template-Type: ReDIF-Article 1.0
Author-Name: Revendranath Tirumalsety
Author-X-Name-First: Revendranath
Author-X-Name-Last: Tirumalsety
Author-Name: Anjula Gurtoo
Author-X-Name-First: Anjula
Author-X-Name-Last: Gurtoo
Title: Financial sources, capital structure and performance of social enterprises: empirical evidence from India
Abstract:
The paper examines the influence of financial sources on capital structure – operationalised through the ratio of financial debt to total assets – of social enterprises, followed by the relationship between financial debt and performance. Data on income distribution, financial sources, and financial statements are collected from 207 social enterprises in four states of India – Karnataka, Telangana, Maharashtra, and Tamil Nadu – through cluster sampling. Multiple regression and panel data analysis tests are conducted to study the research objectives. The findings indicate social enterprises prefer debt from donors for capital investments over impact investments as well as debt from formal institutions. Furthermore, financial debt has a negative influence on return on capital employed component of social enterprises performance. Financial debt has no influence on financial results and suggests the independence of social enterprises from the funders. Furthermore, social enterprises’ ability to use capital efficiently to generate returns may be negatively affected by the repayment of interest and loans to lenders.
Journal: Journal of Sustainable Finance & Investment
Pages: 27-46
Issue: 1
Volume: 11
Year: 2021
Month: 1
X-DOI: 10.1080/20430795.2019.1619337
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1619337
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:1:p:27-46
Template-Type: ReDIF-Article 1.0
Author-Name: Jakob Thomä
Author-X-Name-First: Jakob
Author-X-Name-Last: Thomä
Author-Name: Clare Murray
Author-X-Name-First: Clare
Author-X-Name-Last: Murray
Author-Name: Vincent Jerosch-Herold
Author-X-Name-First: Vincent
Author-X-Name-Last: Jerosch-Herold
Author-Name: Janina Magdanz
Author-X-Name-First: Janina
Author-X-Name-Last: Magdanz
Title: Do you manage what you measure? Investor views on the question of climate actions with empirical results from the Swiss pension fund and insurance sector
Abstract:
Despite the political mandate of Article 2.1(c) of the Paris Agreement (United Nations 2015. ‘Adoption of the Paris Agreement.’ 21st Conference of the Parties, Paris, United Nations, 2) to align finance flows ‘with a pathway towards low greenhouse gas emissions and climate-resilient development,’ many investors do not manage physical and transitional climate risks. The Task Force on Climate Related Financial Disclosures’ 2019 Status Report highlighted this asymmetry. The following paperseeks to evaluate the efficacy of informing investors about the alignment of their portfolios with the Paris Agreement. Based on survey feedback from a 2017 pilot study conducted with Swiss pension funds and insurance companies, the results suggest that after the pilot 40% of respondents implemented a climate strategy or integrated climate criteria into their investment process, showing the potential impact of climate assessments on portfolio strategy. This fact affirms both the positives of portfolio climate assessments, but also the need to explore alternatives avenues for engaging with investors regarding climate risks.
Journal: Journal of Sustainable Finance & Investment
Pages: 47-61
Issue: 1
Volume: 11
Year: 2021
Month: 1
X-DOI: 10.1080/20430795.2019.1673142
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1673142
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:1:p:47-61
Template-Type: ReDIF-Article 1.0
Author-Name: Keron Niles
Author-X-Name-First: Keron
Author-X-Name-Last: Niles
Author-Name: Winston Moore
Author-X-Name-First: Winston
Author-X-Name-Last: Moore
Title: Accounting for environmental assets as sovereign wealth funds
Abstract:
Sovereign Wealth Funds (SWFs) are often used to provide long term macro-economic stability and to accrue and safeguard financial assets for future generations. These state-owned investment funds are usually created using balance of payment surpluses – often from resource exports or the sale of public assets. Given that SWFs are among a few widely-used financial mechanisms created for the benefit of future generations, they can play an important role in helping to achieve the Sustainable Development Goals (SDGs). This paper will argue that a re-direction of economic rents earned from natural resources, along with rigorous and careful ecosystem services accounting can serve to broaden the scope and holistically enhance the value of SWFs. The paper concludes that accounting for environmental assets and the economic benefits derived from such resources can serve as the basis for the establishment of SWFs, promote inter-generational wealth transfer and help stabilise economies impacted by climate change.
Journal: Journal of Sustainable Finance & Investment
Pages: 62-81
Issue: 1
Volume: 11
Year: 2021
Month: 1
X-DOI: 10.1080/20430795.2019.1681618
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1681618
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:1:p:62-81
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Vargas
Author-X-Name-First: Carlos
Author-X-Name-Last: Vargas
Author-Name: Marc Chesney
Author-X-Name-First: Marc
Author-X-Name-Last: Chesney
Title: End of life decommissioning and recycling of solar panels in the United States. A real options analysis
Abstract:
Hundreds of thousands of tons of solar panel waste are estimated to be produced yearly in the United States from the year 2035 on, most of which could be recycled. This paper estimates the amount of scrap material to be produced from solar panels decommissioning and determines the optimal date and location to establish either centralized or regional recycling centers to better deal with this issue from the perspective of the U.S. government as potential investor. Solar panel recycling could become a multi-billion USD industry, however, the main challenge today is to keep its overall costs down while allowing for the majority of panels to be recycled. Real Options Analysis is deployed to assess the optimal solution to face this challenge. Determining the optimal location of those facilities is a novel approach. Further applications of the model proposed in this work could scale up this analysis at an international level.
Journal: Journal of Sustainable Finance & Investment
Pages: 82-102
Issue: 1
Volume: 11
Year: 2021
Month: 1
X-DOI: 10.1080/20430795.2019.1700723
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1700723
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:1:p:82-102
Template-Type: ReDIF-Article 1.0
Author-Name: Nguyen Vinh Khuong
Author-X-Name-First: Nguyen Vinh
Author-X-Name-Last: Khuong
Author-Name: Malik Shahzad Shabbir
Author-X-Name-First: Malik Shahzad
Author-X-Name-Last: Shabbir
Author-Name: Muhammad Safdar Sial
Author-X-Name-First: Muhammad Safdar
Author-X-Name-Last: Sial
Author-Name: Thai Hong Thuy Khanh
Author-X-Name-First: Thai Hong Thuy
Author-X-Name-Last: Khanh
Title: Does informal economy impede economic growth? Evidence from an emerging economy
Abstract:
The objective of this study is to re-examine the impact of the informal economy on economic growth in Pakistan. This study first computed the informal economy through currency demand equation and then the adopted auto-regressor distributed lags (ARDL) technique for data analysis. The result indicates that 56% informal economy of gross domestic product (GDP) exists in Pakistan. The Wald F-test shows that the overall model is statistically significant because the value of this test (13.4) is more than the upper and lower bounds values. Whereas Engle-Granger causality test describes that the growth rate of real GDP causes the Granger to GDP at 5%. This study tries to solve these issues and give a new policy implication for policymakers to control the informal economy and make sure that this sector will convert into a recorded or reported form.
Journal: Journal of Sustainable Finance & Investment
Pages: 103-122
Issue: 2
Volume: 11
Year: 2021
Month: 4
X-DOI: 10.1080/20430795.2020.1711501
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1711501
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:2:p:103-122
Template-Type: ReDIF-Article 1.0
Author-Name: Eleonora Broccardo
Author-X-Name-First: Eleonora
Author-X-Name-Last: Broccardo
Author-Name: Graziano Coller
Author-X-Name-First: Graziano
Author-X-Name-Last: Coller
Author-Name: Luca Erzegovesi
Author-X-Name-First: Luca
Author-X-Name-Last: Erzegovesi
Title: The quest for a sustainable social finance business model: is peer-to-peer lending the legitimate heir to cooperative banking?
Abstract:
In the aftermath of the global financial crisis, concern regarding the social purpose of finance has increased. The role played by peer-to-peer lending (P2PL) seems to resemble the role historically played by cooperative banks (CBs). In this study, we investigate whether P2PL platforms can stand as the legitimate heir of CBs as they appeared when established. A cross-comparison of P2PL and CBs business models (BMs) is conducted among multiple dimensions. The study claims the achievement of a social purpose is not necessarily linked to a specific BM. On one side, CBs are supposed to fulfil their stated social purpose through the supply of accessible and affordable financial services; however, they suffer the burden of growing regulatory pressure. On the other side, P2PL platforms do not explicitly pursue social purposes; however, they could eventually provide such a purpose, at least for specific customer segments.
Journal: Journal of Sustainable Finance & Investment
Pages: 123-142
Issue: 2
Volume: 11
Year: 2021
Month: 4
X-DOI: 10.1080/20430795.2019.1706314
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1706314
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:2:p:123-142
Template-Type: ReDIF-Article 1.0
Author-Name: Prerana Sarma
Author-X-Name-First: Prerana
Author-X-Name-Last: Sarma
Author-Name: Arup Roy
Author-X-Name-First: Arup
Author-X-Name-Last: Roy
Title: A Scientometric analysis of literature on Green Banking (1995-March 2019)
Abstract:
With the rise in concern for the environment, Green Banking has received a lot of attention in recent times. This study aims to identify different dimensions of researches on Green Banking. Furthermore, an attempt is made to study the growth and geographical spread of researches on Green Banking. Relevant research outlets and keywords are analyzed in order to understand the trends in Green Banking research. The study identified 6 different dimensions namely Conceptual aspect, Legal aspect, Model aspect, Stakeholder aspect, Green Performance of Banks and Financial aspect. Results highlight that Green Banking is yet to be properly explored as only 178 articles were found in different portals. Academic interests in Green Banking have been on a rise since 2011 and have attained maximum attention in the year 2015. The Average Growth Rate of research articles published on Green Banking is 25.44%. Asia has the highest number of countries participating in research on Green Banking and has the highest number of research articles on Green Banking. Theoretical studies on Green Banking are comparatively more than the Empirical ones. Analyzing research outlets revealed that mainstream Finance journals are yet to be more active in publishing articles on Green Banking. Keyword analysis identified three key interests of researchers which are Green Banking, Sustainable Development, and Environment. Lastly scope for future research on Green Banking is identified and stated. This study provides useful insights into the nature and trend of research on Green Banking and can act as a reference point for researchers, policymakers, investors, and regulators.
Journal: Journal of Sustainable Finance & Investment
Pages: 143-162
Issue: 2
Volume: 11
Year: 2021
Month: 4
X-DOI: 10.1080/20430795.2020.1711500
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1711500
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:2:p:143-162
Template-Type: ReDIF-Article 1.0
Author-Name: Julia Meyer
Author-X-Name-First: Julia
Author-X-Name-Last: Meyer
Author-Name: Annette Krauss
Author-X-Name-First: Annette
Author-X-Name-Last: Krauss
Title: The social performance of microfinance investment vehicles
Abstract:
Assessing whether investments result in the desired non-financial performance is a key concern in the fast growing field of impact investments, including microfinance. The social performance of the institutions that offer financial inclusion services to underprivileged populations has come under increasing scrutiny, whereas the social performance of the investment vehicles that in turn finance these institutions is researched less. This paper makes use of several large data sets to develop an approach to measure the social performance of microfinance investment vehicles. Drawing on methods from empirical social science and the literature on non-financial ratings of firms, we develop formal quality criteria that the selection of individual social performance indicators and their aggregation into a single metric need to satisfy.
Journal: Journal of Sustainable Finance & Investment
Pages: 163-186
Issue: 2
Volume: 11
Year: 2021
Month: 4
X-DOI: 10.1080/20430795.2020.1715094
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1715094
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:2:p:163-186
Template-Type: ReDIF-Article 1.0
Author-Name: Olufemi Adewale Aluko
Author-X-Name-First: Olufemi Adewale
Author-X-Name-Last: Aluko
Author-Name: Muazu Ibrahim
Author-X-Name-First: Muazu
Author-X-Name-Last: Ibrahim
Title: Institutions and financial development in ECOWAS
Abstract:
Earlier studies on institutions and financial sector development are less informative given their failure to examine how the different forms of institutions influence countries’ level of domestic financial development. In this study, we re-examine the impact of institutions on financial development in the ECOWAS regional bloc over the period 1995–2015. Employing the Augmented Mean Group (AMG) estimator, we show that overall institutions do not have a significant impact on financial development. However, after disaggregating the level of institutions into market-creating, market-legitimizing, market-stabilizing, and market-regulating, we find that only the effect of market-legitimizing institutions significantly enhances financial sector development. Thus, the impact of institutions on financial development is sensitive to the form of institutions. We discuss key implications for policy.
Journal: Journal of Sustainable Finance & Investment
Pages: 187-198
Issue: 2
Volume: 11
Year: 2021
Month: 4
X-DOI: 10.1080/20430795.2020.1717240
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1717240
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:2:p:187-198
Template-Type: ReDIF-Article 1.0
Author-Name: Aaron Maltais
Author-X-Name-First: Aaron
Author-X-Name-Last: Maltais
Author-Name: Björn Nykvist
Author-X-Name-First: Björn
Author-X-Name-Last: Nykvist
Title: Understanding the role of green bonds in advancing sustainability
Abstract:
Green bonds are one of the most prominent innovations in the area of sustainable finance over the past decade. However, to date there have only been a few academic studies on green bonds, and these have tended to focus on what impact green labels have on bond yields. Our analysis is one of the first empirical studies designed to address the broader questions of what attracts investors and issuers to the green bond market, the role of green bonds in shifting capital to more sustainable economic activity, and how green bonds impact the way organisations work with sustainability. Using Sweden as a case study, this paper provides insights into the rapid growth of the green bond market and how green bonds affect market participants’ engagement with sustainability that are easily missed if one focuses only on how green bonds are marketed.
Journal: Journal of Sustainable Finance & Investment
Pages: 233-252
Issue: 3
Volume: 11
Year: 2021
Month: 7
X-DOI: 10.1080/20430795.2020.1724864
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1724864
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:3:p:233-252
Template-Type: ReDIF-Article 1.0
Author-Name: Joon-ho Kim
Author-X-Name-First: Joon-ho
Author-X-Name-Last: Kim
Author-Name: Seung-hye Jung
Author-X-Name-First: Seung-hye
Author-X-Name-Last: Jung
Author-Name: Jong-pil Yu
Author-X-Name-First: Jong-pil
Author-X-Name-Last: Yu
Author-Name: June-hyuk Kwon
Author-X-Name-First: June-hyuk
Author-X-Name-Last: Kwon
Title: Fund managers’ investment considerations for K-IFRS-adopted corporates: impact on investment and reinvestment intentions
Abstract:
This study aims to empirically analyze the effects of fund managers’ investment considerations about K-IFRS-adopted corporates on investment and reinvestment intentions. We perform an evaluation of 576 fund managers working across 53 asset management companies in Korea over a six-month period. We then conduct a statistical analysis of 149 (25.8%) valid questionnaires and obtain the following results. First, the financial and management factors have a statistically significant and positive effect on investment intentions, whereas the reliability and social responsibility factors show no such effect. Second, among fund managers’ investment considerations regarding K-IFRS-adopted corporates, the reliability, social responsibility, and management factors have a statistically significant positive effect on reinvestment intentions; but, we find no such effect for the financial factor. Third, conservative investment propensity demonstrates positive moderation in the relationship between social responsibility and investment intentions and aggressive investment propensity does so for the relationship between the financial factor and reinvestment intentions.
Journal: Journal of Sustainable Finance & Investment
Pages: 253-275
Issue: 3
Volume: 11
Year: 2021
Month: 7
X-DOI: 10.1080/20430795.2020.1727723
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1727723
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:3:p:253-275
Template-Type: ReDIF-Article 1.0
Author-Name: Omar Sheikh Osman
Author-X-Name-First: Omar Sheikh
Author-X-Name-Last: Osman
Title: The role of microfinance post trauma: the case of Syria
Abstract:
Microfinance emerged in the 1970s as a strategy to reduce the vulnerability of the poor and to promote microenterprise. The literature showed that microfinance plays a vital role as a tool for reconstruction in post-conflict communities and this urged the researcher to study the extent to which microfinance can be used as an effective tool for post-trauma reconstruction. The methodology was based on obtaining primary data by raising questions in structured interviews with the officers of microfinance institutions in Syria and obtaining secondary data from their financial reports. The study was conducted at four institutions engaged in microfinance which together represent the population. The descriptive analysis of the data gathered to demonstrate the real role these institutions played. The main conclusions were: The European Investment Bank played a prominent role in supporting microfinance institutions in Syria beside to small and medium enterprises; the distribution of microfinance institutions in Syria did not cover the whole of the country; microfinance institutions make finance accessible to women and encourage them to participate in the economy particularly in rural areas; the typical loan-level microfinance institutions provide is considered inconsequential for financing working capital to entrepreneurs; microfinance institutions charge interest on a monthly basis, the rate amounting on average is around 18–24 per cent annually, even though their main role is assisting in promoting the economy; loans financed by all of the microfinance institutions covered most economic activities; microfinance in alignment with Islamic principles was not accessible.
Journal: Journal of Sustainable Finance & Investment
Pages: 276-290
Issue: 3
Volume: 11
Year: 2021
Month: 7
X-DOI: 10.1080/20430795.2020.1753433
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1753433
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:3:p:276-290
Template-Type: ReDIF-Article 1.0
Author-Name: Lorenzo Esposito
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Esposito
Author-Name: Giuseppe Mastromatteo
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Mastromatteo
Author-Name: Andrea Molocchi
Author-X-Name-First: Andrea
Author-X-Name-Last: Molocchi
Title: Extending ‘environment-risk weighted assets’: EU taxonomy and banking supervision
Abstract:
Changing the economy to meet the goals posed by the Paris Agreement implies a financial system aligned to this end. This debate also involves a reconsideration of aims and tools of banking regulation although, for now, the discussion is still not very operational. In a previous work we introduced the ‘environment-risk weighted assets’ to internalize the pollution risk of the borrower that here we expand empirically to calculate the ‘external costs footprint’ of Italian corporate lending and to cover virtually every part of banks’ business. Moreover, we analyse whether our proposal is aligned to the European Union taxonomy on environmentally sustainable activities. We show that our framework can help to put on a working track the discussion on banking regulation for sustainable finance.
Journal: Journal of Sustainable Finance & Investment
Pages: 214-232
Issue: 3
Volume: 11
Year: 2021
Month: 7
X-DOI: 10.1080/20430795.2020.1724863
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1724863
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:3:p:214-232
Template-Type: ReDIF-Article 1.0
Author-Name: Moinak Maiti
Author-X-Name-First: Moinak
Author-X-Name-Last: Maiti
Title: Is ESG the succeeding risk factor?
Abstract:
The present study addresses three questions: 1. Whether ESG is the succeeding risk factor? 2. To study the relevance of each component of ESG in investment decision? 3. To develop a new more robust asset pricing model with ESG. This study finds that three-factor models with market, size and ESG factors perform better than the Fama–French three-factor model. Higher Sharpe ratios for ESG, environment, social and governance factors indicate that portfolios formed on these factors show better investment performance over traditional size and value-based portfolios for all cases. The main message of the study is that ESG, environment, social and governance factors play an important role in predicting returns hence they should not be ignored while considering investment decision.
Journal: Journal of Sustainable Finance & Investment
Pages: 199-213
Issue: 3
Volume: 11
Year: 2021
Month: 7
X-DOI: 10.1080/20430795.2020.1723380
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1723380
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:3:p:199-213
Template-Type: ReDIF-Article 1.0
Author-Name: Babajide Michael Oyewo
Author-X-Name-First: Babajide Michael
Author-X-Name-Last: Oyewo
Title: Outcomes of interaction between organizational characteristics and management accounting practice on corporate sustainability: the global management accounting principles (GMAP) approach
Abstract:
This study examined the outcomes of interaction between organizational characteristics and robustness of management accounting practice on corporate sustainability from the standpoint of the Global Management Accounting Principles (GMAP). The GMAP framework, developed and endorsed by The American Institute of Certified Public Accountants (AICPA) and The Chartered Institute of Management Accountants (CIMA) in 2014, reflects the paradigm shift in the roles of management accountants in recent times from traditional management accountants to strategic partners aware of business imperatives. Using a structured-questionnaire, the views of senior accounting/finance officers from 131 firms based in Nigeria were gathered and analyzed using descriptive and inferential statistical tools (One-way MANCOVA, OLS regression and moderated regression analysis). It was observed that although management accounting activities were generally performed frequently, certain activities requiring review and modification of already prepared cost and revenue estimates appear to be performed less-frequently. Further, organizational characteristics such as size, organization lifecycle, presence of specialist skills, affiliation to foreign entity and ownership structure significantly affect the robustness of management accounting practice. Whilst detecting that robust management accounting practice elevates corporate sustainability, organizational characteristics such as size, organization lifecycle and presence of specialist skills may determine the extent to which such benefit is realized. Seeing that the presence of specialist skills was the strongest moderator of the relationship between management accounting practice and corporate sustainability, the study advocates for the existence of a standalone management accounting unit/department to improve the realization of the benefits embedded in implementing contemporary management accounting practice.
Journal: Journal of Sustainable Finance & Investment
Pages: 351-385
Issue: 4
Volume: 11
Year: 2021
Month: 10
X-DOI: 10.1080/20430795.2020.1738141
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1738141
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:4:p:351-385
Template-Type: ReDIF-Article 1.0
Author-Name: Mokhamad Anwar
Author-X-Name-First: Mokhamad
Author-X-Name-Last: Anwar
Author-Name: Sulaeman Rahman Nidar
Author-X-Name-First: Sulaeman
Author-X-Name-Last: Rahman Nidar
Author-Name: Ratna Komara
Author-X-Name-First: Ratna
Author-X-Name-Last: Komara
Author-Name: Layyinaturrobaniyah Layyinaturrobaniyah
Author-X-Name-First: Layyinaturrobaniyah
Author-X-Name-Last: Layyinaturrobaniyah
Title: A comparative analysis of rural banks’ efficiency between Bali and West Java provinces in Indonesia
Abstract:
This study comparatively analyses rural banks' efficiency in Indonesia, especially in two provinces, West Java and Bali. West Java is known as the most populous province in Indonesia, , while Bali is the best province in rural bank performance through the assessment of Infobank Magazine in Indonesia, during the 2012–2016 Period. The study involves 212 banks in West Java and 134 banks in Bali over the period. Data envelopment analysis and Tobit regressions are employed to estimate the banks' technical efficiency and its determinants. The results show that the average efficiency of rural banks in Bali was higher than in West Java during the period. Inferential findings emphasize the importance of efficient resource use , sound loan-management, and adequate capital maintenance in bank operations. All these are required for rural banks to compete with other institutions including commercial banks and financial technology-based institutions in providing loans to micro and small businesses.
Journal: Journal of Sustainable Finance & Investment
Pages: 330-350
Issue: 4
Volume: 11
Year: 2021
Month: 10
X-DOI: 10.1080/20430795.2020.1735220
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1735220
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:4:p:330-350
Template-Type: ReDIF-Article 1.0
Author-Name: Siti Nurain Muhmad
Author-X-Name-First: Siti Nurain
Author-X-Name-Last: Muhmad
Author-Name: Rusnah Muhamad
Author-X-Name-First: Rusnah
Author-X-Name-Last: Muhamad
Title: Sustainable business practices and financial performance during pre- and post-SDG adoption periods: a systematic review
Abstract:
The increasing awareness about sustainable development has led to growing literature in this research area. Since the adoption of Sustainable Development Goals (SDGs), companies have started to focus on the environment, people, and planet with the belief that it will lead to better financial performance. Thus, the relationship between sustainability practices and financial performance of companies has attracted much attention among researchers. This study identified the trends and issues highlighted in previous studies concerning the relationship between these two variables. Content analysis was adopted in this study to examine the literature comprising a total of 56 articles indexed in Web of Science (WoS) and Scopus. About 96% of the publications reported a positive relationship between sustainability practices and the financial performance of companies. This research area should be explored in all countries, especially developing countries, to facilitate the understanding of sustainability practices and their impact on financial performance.
Journal: Journal of Sustainable Finance & Investment
Pages: 291-309
Issue: 4
Volume: 11
Year: 2021
Month: 10
X-DOI: 10.1080/20430795.2020.1727724
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1727724
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:4:p:291-309
Template-Type: ReDIF-Article 1.0
Author-Name: Richard P. Gregory
Author-X-Name-First: Richard P.
Author-X-Name-Last: Gregory
Author-Name: Jean Garner Stead
Author-X-Name-First: Jean Garner
Author-X-Name-Last: Stead
Author-Name: Edward Stead
Author-X-Name-First: Edward
Author-X-Name-Last: Stead
Title: The global pricing of environmental, social, and governance (ESG) criteria
Abstract:
We develop an expanded asset evaluation model dubbed the environmental, social and governance (ESG) model, which includes a sustainability factor that accounts for the value of ecological and natural capital. We incorporate a sustainability factor into the Fama-French [2015. “A Five-Factor Asset Pricing Model.” Journal of Financial Economics 116 (1): 1–22] five-factor model plus the momentum factor. Further, we expand previous models by basing ours on microeconomic principles of value maximization and the macroeconomic principles of ecological economics. We estimate the sustainability factor premium and its factor loadings and find that following sustainable strategic management practices reduced the cost of equity by 1.6% to 2.9% per year worldwide. This implies that in 2018, sustainable strategic management practices increased world GDP by $1.3 to $2.3 trillion. Our results support previous research that there is a negative relationship between sustainability performance and the cost of capital.
Journal: Journal of Sustainable Finance & Investment
Pages: 310-329
Issue: 4
Volume: 11
Year: 2021
Month: 10
X-DOI: 10.1080/20430795.2020.1731786
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1731786
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Handle: RePEc:taf:jsustf:v:11:y:2021:i:4:p:310-329
Template-Type: ReDIF-Article 1.0
Author-Name: Hülya Ünlü
Author-X-Name-First: Hülya
Author-X-Name-Last: Ünlü
Author-Name: Ali Saleh Alshebami
Author-X-Name-First: Ali Saleh
Author-X-Name-Last: Alshebami
Title: Source of fund, financial constraints, political instability, and firm innovation: empirical evidence from Arab Spring countries
Abstract:
The purpose of this article is to examine the impact of financial constraints on innovation in countries experiencing the Arab Spring. It also looks at how the impact of financial constraints varies with the source of funding. The study uses 2013 BEEPS data. 2261 companies from 5 MENA countries were included in our sample. The recursive bivariate probit and extended probit models are used. Our findings show that financial constraints negatively affect the likelihood of enhancing a firm's innovative performance. Unlike the existing literature, the effect of financial barriers was not only directly examined, but also the region and fund structure of the company were examined together. Although bank loans directly negatively impact innovation performance, when this effect is considered together with financial barriers, it has been observed that the effects of financial barriers decrease. An even more significant decline is seen with the inclusion of the regional influence.
Journal: Journal of Sustainable Finance & Investment
Pages: 195-213
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1964812
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1964812
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:1:p:195-213
Template-Type: ReDIF-Article 1.0
Author-Name: Anas Ali Al-Qudah
Author-X-Name-First: Anas Ali
Author-X-Name-Last: Al-Qudah
Author-Name: Manaf Al-Okaily
Author-X-Name-First: Manaf
Author-X-Name-Last: Al-Okaily
Author-Name: Hamza Alqudah
Author-X-Name-First: Hamza
Author-X-Name-Last: Alqudah
Title: The relationship between social entrepreneurship and sustainable development from economic growth perspective: 15 ‘RCEP’ countries
Abstract:
Social entrepreneurship plays a role in sustainable development to value creation, delivering and capturing, in this article, researchers attempted to find the nature of the relationships between the sustainable development and its latent variables, and how can these variables effect on sustainable development. Two models were used to estimate the relationships mentioned before, structural equation model and bidirectional causality model, in the case of 15 the regional comprehensive economic partnership (RCEP) countries that are home to nearly a third of the world's population, and account for 29% of GDP. The study found some interesting results which consistence with the results of previous studies in this field, like that there has a positive relationship between the social entrepreneurship and sustainable development, and positive relationship between the innovations and sustainable development and in the regard of the institutions variable, the study also found that there is an indirect effect on innovation.
Journal: Journal of Sustainable Finance & Investment
Pages: 44-61
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1880219
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1880219
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:1:p:44-61
Template-Type: ReDIF-Article 1.0
Author-Name: Lama Radwan
Author-X-Name-First: Lama
Author-X-Name-Last: Radwan
Author-Name: Yousef Daoud
Author-X-Name-First: Yousef
Author-X-Name-Last: Daoud
Title: Entrepreneurship–growth nexus: does the size of the informal economy matter?
Abstract:
This paper implements a multiple linear regression model on panel data of a sample of 64 countries over the period (2002–2015), in order to examine the influence of Entrepreneurship on the growth of output per worker. Our estimation strategy allows for providing a framework that accounts for some of the conflicting findings on the entrepreneurship–growth nexus. We account for the endogeneity of entrepreneurship by using a valid instrument, andfor the level of development and its interaction with entrepreneurship, we also account for the size of the informal economy as a moderating variable of the entrepreneurship–growth nexus. We find that the effect of entrepreneurship on growth is positive and significant, but the analysis fails to support that the relation varies by level of development and the size of the informal economy. Policy implications point to fostering entrepreneurship and designing policies that take into consideration the macroeconomic environment of the country.
Journal: Journal of Sustainable Finance & Investment
Pages: 169-194
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1940812
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1940812
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:1:p:169-194
Template-Type: ReDIF-Article 1.0
Author-Name: Khakan Najaf
Author-X-Name-First: Khakan
Author-X-Name-Last: Najaf
Author-Name: Ravichandran K. Subramaniam
Author-X-Name-First: Ravichandran K.
Author-X-Name-Last: Subramaniam
Author-Name: Osama F. Atayah
Author-X-Name-First: Osama F.
Author-X-Name-Last: Atayah
Title: Understanding the implications of FinTech Peer-to-Peer (P2P) lending during the COVID-19 pandemic
Abstract:
This study examines the impact of the COVID-19 pandemic on the determinants of FinTech Peer-to-Peer (P2P) lending. The issue is significant because P2P lending platforms have attracted borrowers with little to no access to the credit facilities offered by conventional banks during the pandemic. Although many banks and financial institutions have offered online loan application services during the COVID-19 pandemic, few have developed verification of loan applications submitted online. The results of this study show that the COVID-19 has brought a drastic change in the key determinants of P2P lending. The results imply that FinTech P2P lending has become the most viable alternative credit option available to borrowers. The findings are significant and likely to be of interest to borrowers, investors, practitioners, academics, and policymakers because they highlight the usefulness of P2P lending platforms and their potential to augment or replace lending provided by traditional or conventional banking institutions.
Journal: Journal of Sustainable Finance & Investment
Pages: 87-102
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1917225
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1917225
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:1:p:87-102
Template-Type: ReDIF-Article 1.0
Author-Name: Lan Sun
Author-X-Name-First: Lan
Author-X-Name-Last: Sun
Author-Name: Garrick Small
Author-X-Name-First: Garrick
Author-X-Name-Last: Small
Title: Has sustainable investing made an impact in the period of COVID-19?: evidence from Australian exchange traded funds
Abstract:
We study the impact of sustainability on the financial performance of exchange-traded funds (ETFs) in the period of COVID-19. Using a sample of 244 Australian ETFs rated by Morningstar in April 2020, we conducted the portfolio analysis and cross-sectional regression analysis, and the results show that ETF portfolios with lower carbon risk and fossil fuel exposure tend to outperform. However, ETF portfolios with higher social risk tend to deliver a better performance. We also find that ETF portfolios with high environmental risk, governance risk, carbon risk and fossil fuel exposure are more likely to experience high volatility in stock returns. The findings will serve as an important point of reference for investors, businesses and wider stakeholders. The sustainable investing is proving to be resilient during the COVID-19 and a closer look at ESG risks is a lens through which business leaders can build better and more resilient enterprises.
Journal: Journal of Sustainable Finance & Investment
Pages: 251-273
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1977577
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1977577
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:1:p:251-273
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulla Yusuf Al Hawaj
Author-X-Name-First: Abdulla Yusuf
Author-X-Name-Last: Al Hawaj
Author-Name: Amina Mohamed Buallay
Author-X-Name-First: Amina Mohamed
Author-X-Name-Last: Buallay
Title: A worldwide sectorial analysis of sustainability reporting and its impact on firm performance
Abstract:
This study investigates the worldwide impact of sustainability reporting on firms' performance across seven different sectors. Using data culled from 3,000 firms in 80 different countries for ten years from 2008 to 2017 (cumulatively 23,738 observations). The findings elicited from the empirical results demonstrate that there are differences in the impact of sustainability reporting (ESG) on firm's operational performance (ROA), financial performance (ROE) and market performance (TQ) between the seven sectors. Inasmuch as it contributes to the literature of sustainability accounting by a systematic depiction of cross-sectorial ESG reporting, this study establishes a benchmark to guide to firms wishing to adopt sustainability reporting. Moreover, in including macroeconomic variables, the study provides a fresh perspective to the literature of the on the economic implications of sustainability disclosure.
Journal: Journal of Sustainable Finance & Investment
Pages: 62-86
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1903792
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1903792
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:1:p:62-86
Template-Type: ReDIF-Article 1.0
Author-Name: Layla Alhalwachi
Author-X-Name-First: Layla
Author-X-Name-Last: Alhalwachi
Author-Name: Chima Mordi
Author-X-Name-First: Chima
Author-X-Name-Last: Mordi
Title: Organisational, societal, and individual factors affecting women’s career progression in Bahraini banking sector
Abstract:
This paper mainly aims at exploring factors affecting women's career progression in Bahraini banking sector. To achieve the objectives of the study, qualitative research approach was applied through semi-structured interviews specifically designed to collect primary information from(37) female managers working in banks. The collected data was analysed using content analysis. The results showed that organisational, societal, and individual factors had a large impact on women's career progression, where organisational factor includes impeding women from attending leadership training and mentorship programmes, lack of women role models, disempowerment, lack of confidence in women's performance, and bias and discrimination. While, societal factor includes stereotyping, societal norms and perceptions, and clash of cultures. Individual factor includes lack of personality traits, lack of education and mentorship, and hesitation and fear. In light of these results, the researcher recommended that it should be an understanding of the male perception of barriers that impede female career advancement.
Journal: Journal of Sustainable Finance & Investment
Pages: 103-127
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1922064
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1922064
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:1:p:103-127
Template-Type: ReDIF-Article 1.0
Author-Name: Naglaa Ibrahim Khamis
Author-X-Name-First: Naglaa Ibrahim
Author-X-Name-Last: Khamis
Author-Name: Wan Khairuzzaman Wan Ismail
Author-X-Name-First: Wan Khairuzzaman
Author-X-Name-Last: Wan Ismail
Title: The impact of corporate social responsibility on corporate image in the construction industry: a case of SMEs in Egypt
Abstract:
The current study explores Corporate Image (CI) for companies as one of the primary measures of competitive advantage. Hence CI has been considered the dependent variable to test whether Corporate Social Responsibility (CSR) practices could affect CI in SMEs. This research focuses on the construction industry in Egypt due to the limited availability of studies investigating CSR and corporate image. The authors performed a regression analysis to assess CSR's effect on CI in Egyptian construction companies. The results revealed that Egyptian SMEs in the construction industry implemented most of the CSR practices included in ISO 26000, and those practices positively impact the companies’ corporate image. The results of the study are in line with the literature and theory of both CSR and CI.
Journal: Journal of Sustainable Finance & Investment
Pages: 128-146
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1930992
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1930992
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:1:p:128-146
Template-Type: ReDIF-Article 1.0
Author-Name: Arshad Hasan
Author-X-Name-First: Arshad
Author-X-Name-Last: Hasan
Author-Name: Khaled Hussainey
Author-X-Name-First: Khaled
Author-X-Name-Last: Hussainey
Author-Name: Doaa Aly
Author-X-Name-First: Doaa
Author-X-Name-Last: Aly
Title: Determinants of sustainability reporting decision: evidence from Pakistan
Abstract:
We investigate the determinants of corporate sustainability reporting decision. We use a logistic regression model to analyse data collected from a sample of 138 firms listed on the Pakistan Stock Exchange for the years 2009–2018. We find that firms with more gender-diverse boards, larger audit committees and higher institutional ownership are more likely to issue sustainability reports. We also find that concentrated ownership, managerial ownership, foreign ownership and audit committee independence negatively influence the firms' sustainability reporting decision. The findings provide valuable insight to Pakistani policymakers by identifying the attributes that require regulatory focus to achieve the public policy objective of sustainable development. We are the first to explore the determinants of sustainability reporting decision in Pakistan. It provides empirical evidence to regulators and policymakers in Pakistan and other emerging markets who have already adopted a governance framework and are considering sustainability reporting in their respective contexts.
Journal: Journal of Sustainable Finance & Investment
Pages: 214-237
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1964813
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1964813
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:1:p:214-237
Template-Type: ReDIF-Article 1.0
Author-Name: Allam Hamdan
Author-X-Name-First: Allam
Author-X-Name-Last: Hamdan
Author-Name: Hasan Ghura
Author-X-Name-First: Hasan
Author-X-Name-Last: Ghura
Author-Name: Bahaaeddin Alareeni
Author-X-Name-First: Bahaaeddin
Author-X-Name-Last: Alareeni
Author-Name: Reem Khamis Hamdan
Author-X-Name-First: Reem Khamis
Author-X-Name-Last: Hamdan
Title: Entrepreneurship Growth in Emerging Economies: New Insights and Approaches
Abstract:
Emerging economies have a diverse range of countries regarding both geography and stage of development that have been influenced by historical, cultural, and societal change. Recently more emphasis has been placed on understanding the role of entrepreneurship in emerging economies due to changing economic conditions and the rapid rise of entrepreneurs in the global economy. This special journal issue includes a number of articles on diverse issues related to entrepreneurship in emerging economies both from the micro, meso, and macro perspectives. Based on this, we argue that it is necessary to consider the institutional context of formal and informal institutions to understand better the continued growth of entrepreneurship in emerging economies. In addition to summarizing the main contributions of those articles in this Issue, we provide new insights and approaches to explore further how entrepreneurship can contribute to sustainable economic growth in this context. This will help contribute to the literature and practice about the development of entrepreneurial activity in emerging economies.
Journal: Journal of Sustainable Finance & Investment
Pages: 1-12
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1944750
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1944750
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Template-Type: ReDIF-Article 1.0
Author-Name: Nohade Nasrallah
Author-X-Name-First: Nohade
Author-X-Name-Last: Nasrallah
Author-Name: R. El Khoury
Author-X-Name-First: R.
Author-X-Name-Last: El Khoury
Title: Is corporate governance a good predictor of SMEs financial performance? Evidence from developing countries (the case of Lebanon)
Abstract:
This paper aims to empirically examine the link between corporate governance and the financial performance of small and medium enterprises (SMEs) in Lebanon. To this end, we use a questionnaire and collect data from a sample of 150 non-listed companies. The Bundles approach following R. Aguilera et al. (2008). ‘An Organizational Approach to Comparative Corporate Governance: Costs, Contingencies, and Complementarities.’ Organization Science 19: 475–492.) is used to construct a corporate governance score based on three main components. By applying 2SLS regression to control for endogeneity and a quantile regression, we study the impact of corporate governance (CG) score and each of its components on the financial performance (FP) measured by return on assets (ROA) and return on investment (ROI) while controlling for SMEs age, size, and industry. The study indicates positive interdependency between CG and FP. Effective CG results in increased FP and better performing companies tend to improve their CG). Interestingly, our results show that this relationship depends on the level of SMEs FP These findings provide managers with useful insights and serve as an underpinning for more regulatory efforts aimed at strengthening the CG of SMEs in Lebanon.
Journal: Journal of Sustainable Finance & Investment
Pages: 13-43
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1874213
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Template-Type: ReDIF-Article 1.0
Author-Name: Folorunsho M. Ajide
Author-X-Name-First: Folorunsho M.
Author-X-Name-Last: Ajide
Title: Entrepreneurship and productivity in Africa: the role of institutions
Abstract:
Through an empirical analysis of selected African countries for a period of 2006–2017, this paper explores three hypotheses suggesting that African entrepreneurship does not promote productivity except there are conducive institutional environments. The study applies panel data estimation techniques on data obtained from seventeen countries in Africa. The results obtained are summarized as follows: (1) African entrepreneurship does not promote productivity. (2) We do not confirm any significant U-shaped relationship between entrepreneurship and productivity in Africa. (3) African entrepreneurship promotes productivity via conducive institutional quality at a threshold value of 4.56 on a scale of 0 to 5 point. Among the institutional dimensions, government effectiveness, regulatory quality, rule of law, and control of corruption respectively turn to be more relevant in the selected countries. The study concludes that strong institutional quality would help in promoting total factor productivity in Africa.
Journal: Journal of Sustainable Finance & Investment
Pages: 147-168
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1939645
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:1:p:147-168
Template-Type: ReDIF-Article 1.0
Author-Name: Rami Abu Wadi
Author-X-Name-First: Rami
Author-X-Name-Last: Abu Wadi
Author-Name: Ala’ Bashayreh
Author-X-Name-First: Ala’
Author-X-Name-Last: Bashayreh
Author-Name: Lubna Khalaf
Author-X-Name-First: Lubna
Author-X-Name-Last: Khalaf
Author-Name: Samer Abdelhadi
Author-X-Name-First: Samer
Author-X-Name-Last: Abdelhadi
Title: Financial sustainability and outreach in microfinance institutions: evidence from MENA countries
Abstract:
Microfinance Institutions (MFIs) have a significant role in filling the gap between the formal financial institutions and the poor people. This study aims at estimating the interaction between outreach and financial sustainability in MENA countries. The study examines 82 MFIs for 2004–2018, ends up with 133 observations. A panel data technique is employed for model specification. Our findings confirm a trade-off between financial sustainability and outreach performance by MFIs in MENA countries, and we recommend that MFIs must take care of the management of financial ratios, such as ROA, ROE and OSS and performance, to achieve financial sustainability and outreach.
Journal: Journal of Sustainable Finance & Investment
Pages: 238-250
Issue: 1
Volume: 12
Year: 2022
Month: 01
X-DOI: 10.1080/20430795.2021.1964814
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:1:p:238-250
Template-Type: ReDIF-Article 1.0
Author-Name: Kerstin Lopatta
Author-X-Name-First: Kerstin
Author-X-Name-Last: Lopatta
Author-Name: Alexander Bassen
Author-X-Name-First: Alexander
Author-X-Name-Last: Bassen
Author-Name: Thomas Kaspereit
Author-X-Name-First: Thomas
Author-X-Name-Last: Kaspereit
Author-Name: Sebastian A. Tideman
Author-X-Name-First: Sebastian A.
Author-X-Name-Last: Tideman
Author-Name: Daniel Buchholz
Author-X-Name-First: Daniel
Author-X-Name-Last: Buchholz
Title: The effect of institutional dual holdings on CSR performance
Abstract:
This study sheds light on agency conflicts between creditors and shareholders and their effect on a firm's corporate social responsibility (CSR) performance. We find that the presence of institutional investors which simultaneously hold debt and equity claims in the same firm, so-called dual holders, leads to an increase in CSR performance by the firm that is dual-held (the dual holding firm). Using institutional mergers between separate lenders and equity holders as a natural experiment involving the shareholder-creditor conflict, we find that firms which exhibit dual ownership for the first time increase their CSR activities to a greater extent than a matched control group. In line with the previous literature, we interpret our findings as evidence that dual holders internalise agency conflicts. Thus, we find that a reduction in agency conflicts between creditors and shareholders, partly achieved by dual holders, positively affects the CSR activities of dual holdings.
Journal: Journal of Sustainable Finance & Investment
Pages: 431-450
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1776535
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1776535
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:431-450
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Nedopil Wang
Author-X-Name-First: Christoph
Author-X-Name-Last: Nedopil Wang
Author-Name: Mathias Lund Larsen
Author-X-Name-First: Mathias
Author-X-Name-Last: Lund Larsen
Author-Name: Y. Wang
Author-X-Name-First: Y.
Author-X-Name-Last: Wang
Title: Addressing the missing linkage in sustainable finance: the ‘SDG Finance Taxonomy’
Abstract:
Achieving the United Nation’s (UN) Sustainable Development Goals (SDGs) is said to require USD 5–7 trillion of investments in areas such as health, education, environmental protection, and infrastructure. While several frameworks exist to mobilize and to some extent report on sustainable finance, stakeholders have no agreement how to identify SDG-aligned projects and report on relevant impact indicators. Targeted at investors and governments to drive sustainable investment in China and across the globe, the UNDP SDG Finance Taxonomy launched in June 2020 provides a unified taxonomy of activities for sustainable finance that incorporates all 17 sustainable development goals (SDGs). In doing so, the taxonomy provides a clear pathway for identifying SDG-aligned projects for financing, reducing transaction costs, and is compatible with existing frameworks.
Journal: Journal of Sustainable Finance & Investment
Pages: 630-637
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1796101
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1796101
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:630-637
Template-Type: ReDIF-Article 1.0
Author-Name: Cong Minh Huynh
Author-X-Name-First: Cong Minh
Author-X-Name-Last: Huynh
Title: How does the impact of foreign direct investment on institutional quality depend on the underground economy?
Abstract:
This study sheds light on the impacts of FDI inflows and underground economy on institutional quality, as well as the moderating effect of underground economy on FDI – institutional quality nexus in 43 developing countries worldwide during 2002-2009. By using FGLS and SGMM for estimation, we find that FDI inflows have a positive impact on institutional quality, while underground economy and the interaction term between FDI and underground economy have negative impacts on institutional quality. Our results indicate that FDI inflows initially help improve institutional quality, but the presence of underground economy reduces this effect until the underground economy reaches a threshold, then above this threshold, the total impact of FDI on institutional quality turns negative. The findings imply that to foster the role of FDI in ameliorating institutional quality, governments in developing countries must control the underground economy at certain levels below the threshold.Highlights
FDI inflows improve institutional quality in the host countries.The underground economy reduces institutional quality.The impact of FDI on institutional quality depends on the underground economy.There is a threshold of the underground economy. Below this threshold, FDI inflows enhance institutional quality; but FDI inflows jeopardize institutional quality when the underground economy is above this threshold.
Journal: Journal of Sustainable Finance & Investment
Pages: 554-569
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1788851
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1788851
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:554-569
Template-Type: ReDIF-Article 1.0
Author-Name: Rodrigo Zeidan
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Zeidan
Title: Obstacles to sustainable finance and the covid19 crisis
Abstract:
Rarely are the incentives of portfolio managers aligned with those of companies’ stakeholders. In this article, I use access to the founder of Wright Capital, a wealth management company that has U$600 million under management, to explore the dynamics of sustainable finance and impact investment amidst the covid19 crisis. Pointedly, Wright Capital is a consumer of financial products related to the sustainability domain. As such, it encounters many of the supply-side obstacles that have been observed by researchers; chiefly among it, few specialized funds, the prevalence of green washing, and difficulties in disentangling ESG scores from other companies’ characteristics (larger companies tend to provide more detailed information on their environmental and social initiatives).
Journal: Journal of Sustainable Finance & Investment
Pages: 525-528
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1783152
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1783152
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:525-528
Template-Type: ReDIF-Article 1.0
Author-Name: Takashi Kanamura
Author-X-Name-First: Takashi
Author-X-Name-Last: Kanamura
Title: A model of price correlations between clean energy indices and energy commodities
Abstract:
We propose a new supply and demand-based correlation model of clean energy indices and energy prices with the influence of energy on clean energy business including renewables. Empirical studies estimate the model parameters using the stock indices and energy prices including S&P Global Clean Energy Index (GCE), Wilderhill Clean Energy Index (ECO), S&P/TSX Renewable Energy and Clean Technology Index (TXCT), S&P 500, WTI crude oil prices, and Henry Hub (HH) natural gas prices. Results show the correlations between GCE or ECO and WTI crude oil or HH natural gas prices are positive and an increasing function of the corresponding energy prices. It seems reasonable because the values of renewable energy businesses, which sell electricity in the spot market, are enhanced by the increase in energy prices, considering that electricity spot prices increase in line with energy prices. In contrast, results show the correlations between S&P 500 and WTI or HH prices are still positive but a decreasing function of the energy prices. This sharp contrast may come from the fact that the S&P 500 listed companies’ businesses can be damaged by high energy prices while not applicable to GCE and ECO companies. Regarding TXCT, the correlations with WTI are positive and are a decreasing function of WTI while those with HH tend to be positive and are an increasing function of HH. It may suggest that TXCT is not fully functioning but still developing as a clean energy index, taking into account the results of GCE and ECO.
Journal: Journal of Sustainable Finance & Investment
Pages: 319-359
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1753434
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1753434
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:319-359
Template-Type: ReDIF-Article 1.0
Author-Name: Anatoly B. Schmidt
Author-X-Name-First: Anatoly B.
Author-X-Name-Last: Schmidt
Title: Optimal ESG portfolios: an example for the Dow Jones Index
Abstract:
Mean variance portfolio theory is expanded to accommodate investors’ preferences for the portfolio ESG value (PESGV). Namely, PESGV is added to the minimizing objective function so that portfolio weights are simultaneously optimized in terms of returns, risk (volatility), and PESGV. PESGV is assumed proportional to the sum of portfolio constituents’ weighted ESG scores and is controlled by the ESG strength parameter γ. A new ESG portfolio performance measure, the ESG tilted Sharpe ratio, is introduced. Its maximum can be used for determining γ. A portfolio formed with 29 constituents of the Dow Jones Index in 2015–2019 is considered as an example. The MSCI ESG ratings are chosen for estimating PESGV. It is found that higher PESGVs yield more concentrated portfolios and lower Sharpe ratios. Partial correlations based portfolios are more diversified and have higher PESGVs than the Pearson’s correlations based portfolios.
Journal: Journal of Sustainable Finance & Investment
Pages: 529-535
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1783180
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1783180
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:529-535
Template-Type: ReDIF-Article 1.0
Author-Name: David Talbot
Author-X-Name-First: David
Author-X-Name-Last: Talbot
Author-Name: Eduardo Ordonez-Ponce
Author-X-Name-First: Eduardo
Author-X-Name-Last: Ordonez-Ponce
Title: Canadian banks’ responses to COVID-19: a strategic positioning analysis
Abstract:
The Canadian banking system is among the best in the world. Amid the COVID-19 pandemic, the world is challenged and banks are expected to rescue society. Businesses are revising, repurposing, and reinventing their products and services to address people’s needs. In this context, this article seeks to understand how Canada’s banks are supporting their clients and communities, during the current health crisis. Content analysis was conducted to analyse Canada’s ten largest banks’ supporting actions towards the pandemic, leading to 125 documents and 19 different actions consulted. Based on the data, a combination of hierarchical clustering and multidimensional scaling was conducted. Following a CSR approach, three clusters of banks are identified: sweeping actions, cautious actions, and wait & see, highlighting that while most banks are doing little to help their stakeholders, three of them have a proactive and strong commitment to their clients and communities in these times of need.
Journal: Journal of Sustainable Finance & Investment
Pages: 423-430
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1771982
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1771982
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:423-430
Template-Type: ReDIF-Article 1.0
Author-Name: Çisem Bektur
Author-X-Name-First: Çisem
Author-X-Name-Last: Bektur
Author-Name: Sabri Burak Arzova
Author-X-Name-First: Sabri Burak
Author-X-Name-Last: Arzova
Title: The effect of women managers in the board of directors of companies on the integrated reporting: example of Istanbul Stock Exchange (ISE) Sustainability Index
Abstract:
Sustainability reporting is the counterpart of the concept of non-financial reporting and an important element of integrated reporting that includes financial and non-financial information (GRI). Integrated Reporting is described as a summary presentation of how an organization’s strategy, management, performance, and expectations will create value (IIRC). In integrated reporting, the information collected from different sources of institutions (finance, ecology, etc.) is established and evaluated, and uncertainties regarding the future activities of organizations are tried to be prevented and their sustainability is evaluated (Vaz et al. (2016)). This study works out the impact of gender diversity on companies’ boards of directors on the quality of Integrated Reporting and firm performance. 15 companies that have ESG scores between 2014 and 2019 from 56 companies included in the ISE Sustainability Index (XUSRD) as of 03.02.2020 have been examined and reported using the Panel Data Analysis method. The ISE Sustainability Index allows investors to easily distinguish companies that develop sustainability and corporate social responsibility principles and invest in these companies. It also allows companies to compare their corporate sustainability performance locally and globally. For this reason, this index, which aims to increase understanding, knowledge, and practices on sustainability among ISE companies, is very important and it has been observed that the relationship between women on board of directors, firm performance, and ESG is not analyzed adequately.
Journal: Journal of Sustainable Finance & Investment
Pages: 638-654
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1796417
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1796417
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:638-654
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Safdar Sial
Author-X-Name-First: Muhammad Safdar
Author-X-Name-Last: Sial
Author-Name: Jacob Cherian
Author-X-Name-First: Jacob
Author-X-Name-Last: Cherian
Author-Name: Susana Álvarez-Otero
Author-X-Name-First: Susana
Author-X-Name-Last: Álvarez-Otero
Author-Name: Ubaldo Comite
Author-X-Name-First: Ubaldo
Author-X-Name-Last: Comite
Author-Name: Malik Shahzad Shabbir
Author-X-Name-First: Malik Shahzad
Author-X-Name-Last: Shabbir
Author-Name: Stefan B. Gunnlaugsson
Author-X-Name-First: Stefan B.
Author-X-Name-Last: Gunnlaugsson
Author-Name: Mosab Ismail Tabash
Author-X-Name-First: Mosab Ismail
Author-X-Name-Last: Tabash
Title: RETRACTED ARTICLE: Nexus between sustainable economic growth and foreign private investment: evidence from emerging and developed economies
Abstract:
We, the Editors and Publisher of the Journal of Sustainable Finance and Investment, have retracted the following article:
Nexus between sustainable economic growth and foreign private investment: evidence from emerging and developed economies, DOI: 10.1080/20430795.2021.1990834Subsequent to publication it has been determined that the article contains significant textual overlap with:
Nexus between economic growth and foreign private investment: Evidence from Pakistan economy, DOI: 10.1080/23322039.2021.1956067which was not cited or otherwise acknowledged.When approached for an explanation the following authors reported that they contributed to the article at the revision stage and were unaware of the overlap with the previously published article: Muhammad Safdar Sial, Jacob Cherian, Susana Alvarez-Otero, Ubaldo Comite, Stefan Gunnlaugsson, and Mosab Tabash.We have been informed in our decision-making by our policy on publishing ethics and integrity and the COPE guidelines on retractions.The retracted article will remain online to maintain the scholarly record, but it will be digitally watermarked on each page as ‘Retracted’.
Journal: Journal of Sustainable Finance & Investment
Pages: I-XXI
Issue: 2
Volume: 12
Year: 2022
Month: 04
X-DOI: 10.1080/20430795.2021.1990834
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1990834
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:I-XXI
Template-Type: ReDIF-Article 1.0
Author-Name: Mercy T. Musakwa
Author-X-Name-First: Mercy T.
Author-X-Name-Last: Musakwa
Author-Name: Nicholas M. Odhiambo
Author-X-Name-First: Nicholas M.
Author-X-Name-Last: Odhiambo
Title: Remittance inflows and poverty Nexus in Botswana: a multivariate approach
Abstract:
This study investigates the causal relationship between remittances (remittance inflows) and poverty in Botswana. Time series data is utilised from 1980 to 2017. To improve the robustness of the results, two poverty proxies are used, namely: household consumption expenditure and infant mortality rate. The study employs autoregressive distributed lag approach (ARDL) to cointegration and the error correction model (ECM)-based causality test, the findings of the study reveal a short-run and long-run bidirectional causal relationship between poverty and remittances when household consumption expenditure is used as a proxy for poverty. However, when poverty is measured by infant mortality rate, a unidirectional causal relationship from poverty to remittances is confirmed both in the long run and the short run. Using the same poverty proxy, remittances were found to have an indirect causal effect on poverty through real gross domestic product per capita. The study concludes that remittances play an important role in driving poverty reduction in Botswana, irrespective of whether the level of poverty is measured by household consumption expenditure or by infant mortality rate.
Journal: Journal of Sustainable Finance & Investment
Pages: 475-489
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1777786
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1777786
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:475-489
Template-Type: ReDIF-Article 1.0
Author-Name: Nadi Serhan Aydın
Author-X-Name-First: Nadi Serhan
Author-X-Name-Last: Aydın
Author-Name: Martin Rainer
Author-X-Name-First: Martin
Author-X-Name-Last: Rainer
Title: Asset-backed stable numéraire approach for sustainable valuation
Abstract:
Interest rates underpin almost every instrument/transaction in conventional financial markets. Valuation of the instruments in relation to interest rates remains meaningful only if cash can be attributed a worth of its own (which is generally assumed to accumulate over time). The relevant concepts such as the stochastic short rate and the conventional numéraire (i.e. the money market account) not only become restrictive when one attempts to build more realistic models in quantitative finance, but also – as we demonstrate in this work – their application has de-stabilizing effects on asset valuations. This paper presents a detailed critique of the conventional numéraire and proposes an asset-backed stable numéraire for sustainable valuation of assets and/or transactions. In particular, we demonstrate how some of the key benchmarks of a sustainable footprint may be used as a numéraire currency. We also unveil the implicit assumption underlying the common practice of straightforward factorization in conventional relative pricing to be false.
Journal: Journal of Sustainable Finance & Investment
Pages: 360-374
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1769983
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1769983
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:360-374
Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Burchi
Author-X-Name-First: Alberto
Author-X-Name-Last: Burchi
Author-Name: Bogdan Włodarczyk
Author-X-Name-First: Bogdan
Author-X-Name-Last: Włodarczyk
Title: ‘Best in class' socially responsible investment. The actual performance evaluation between the US and Europe
Abstract:
This study investigates the realized performance of socially responsible investments (SRIs) in US and in European financial markets. We simulate a real investment strategy based on continuous portfolio optimization in the risk-return space. We assume the role of an investor who bases his or her choices on a ‘best in class' approach. We evaluate performance using the actual returns achieved by these strategies. Our results show that the socially responsible investor must pay a cost in terms of a lower investment-risk premium according to his or her appetite for risk and geographical area. In the US, SRI investments yield lower returns than non-SRI investments; in Europe, SRI investments yield lower returns and more volatility. Finally, SRIs have greater capacity to reduce risk in terms of both losses and recovery speed.
Journal: Journal of Sustainable Finance & Investment
Pages: 275-298
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1742012
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1742012
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:275-298
Template-Type: ReDIF-Article 1.0
Author-Name: Vishal Vyas
Author-X-Name-First: Vishal
Author-X-Name-Last: Vyas
Author-Name: Kiran Mehta
Author-X-Name-First: Kiran
Author-X-Name-Last: Mehta
Author-Name: Renuka Sharma
Author-X-Name-First: Renuka
Author-X-Name-Last: Sharma
Title: Investigating socially responsible investing behaviour of Indian investors using structural equation modelling
Abstract:
The current study examines the relationship between non-economic goals and individual investors’ attributes. The individual investors’ characteristics include collectivism, environmental attitude, religiosity, materialism, risk tolerance and social investing efficacy. The study is conclusive, and the required data was collected using a structured questionnaire. The socially responsible investing behaviour of individuals is explored using second-order structural equation modelling and test of mediation. All the distinctive characteristics of individual investors have shown significant values in determining the individual's non-economic/socially responsible goals. However, the significant coefficients obtained for materialism and risk affinity have designated inverse relationships with non-economic goals. The study has implications for individual investors, fund managers and corporate too. The findings of the study support the socially responsible behaviour of individuals while taking investment decisions.
Journal: Journal of Sustainable Finance & Investment
Pages: 570-592
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1790958
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1790958
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:570-592
Template-Type: ReDIF-Article 1.0
Author-Name: Zachary Folger-Laronde
Author-X-Name-First: Zachary
Author-X-Name-Last: Folger-Laronde
Author-Name: Sep Pashang
Author-X-Name-First: Sep
Author-X-Name-Last: Pashang
Author-Name: Leah Feor
Author-X-Name-First: Leah
Author-X-Name-Last: Feor
Author-Name: Amr ElAlfy
Author-X-Name-First: Amr
Author-X-Name-Last: ElAlfy
Title: ESG ratings and financial performance of exchange-traded funds during the COVID-19 pandemic
Abstract:
With the advent of the COVID-19 pandemic, the world has experienced economic and social fragility, which calls for alternative approaches to navigate towards sustainable outcomes. While recent studies show that responsible investments (RI) are resilient during the economic downturn caused by crises such as COVID-19, there has been little exploration into exchange-traded funds (ETFs). Using ANOVA and multivariate regression models, we analyze the differences and relationship between the financial returns of ETFs and their Eco-fund ratings during the COVID-19 pandemic-related financial market crash. Our results indicate that higher levels of the sustainability performance of ETFs do not safeguard investments from financial losses during a severe market downturn. These results contribute to the research by exposing weaknesses of current sustainability scores and rating methods to provide an initial analysis of RI during the COVID-19 pandemic
Journal: Journal of Sustainable Finance & Investment
Pages: 490-496
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1782814
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1782814
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:490-496
Template-Type: ReDIF-Article 1.0
Author-Name: Camila Yamahaki
Author-X-Name-First: Camila
Author-X-Name-Last: Yamahaki
Author-Name: Annelise Vendramini Felsberg
Author-X-Name-First: Annelise Vendramini
Author-X-Name-Last: Felsberg
Author-Name: Alexandre C. Köberle
Author-X-Name-First: Alexandre C.
Author-X-Name-Last: Köberle
Author-Name: Angelo Costa Gurgel
Author-X-Name-First: Angelo Costa
Author-X-Name-Last: Gurgel
Author-Name: Janaína Stewart-Richardson
Author-X-Name-First: Janaína
Author-X-Name-Last: Stewart-Richardson
Title: Structural and specific barriers to the development of a green bond market in Brazil
Abstract:
This paper investigates the factors that hinder the development of a green bond market in Brazil. Based on semi-structured interviews with representatives from the Brazilian capital markets, this study found that there are two sets of challenges. The first comprises structural barriers that curb the development of the local bond market and attraction of foreign investments, such as an unstable macroeconomic environment and inadequate legal protection for investors. The second comprises specific obstacles to the development of a green bond market, such as lower than expected risk-adjusted returns of low-carbon investments. We expect that the research findings will serve as a roadmap for policy-makers on which barriers must be tackled to develop a green bond market in Brazil, thus facilitating the transition to a low-carbon economy.
Journal: Journal of Sustainable Finance & Investment
Pages: 389-406
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1769985
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1769985
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:389-406
Template-Type: ReDIF-Article 1.0
Author-Name: Ridwan Ridwan
Author-X-Name-First: Ridwan
Author-X-Name-Last: Ridwan
Author-Name: Arung Gihna Mayapada
Author-X-Name-First: Arung Gihna
Author-X-Name-Last: Mayapada
Title: Does sharia governance influence corporate social responsibility disclosure in Indonesia Islamic banks?
Abstract:
Purpose: This study aims to investigate the effect of sharia governance to corporate social responsibility disclosure in Indonesia Islamic banks.Design/methodology/approach: The data in this study are taken from the annual reports of ten Islamic banks in Indonesia in the period 2011–2018. The data analysis method used in this study is multiple linear regression analysis.Findings: This study finds that the effectiveness of the board of directors plays a vital role in enforcing corporate social responsibility disclosure. Whereas, the audit committee and sharia supervisory board are found to have no significant effect on corporate social responsibility disclosure in Islamic banks.Research implications: Results of this study reveal that sharia supervisory board in Indonesia Islamic banks only still focuses on the compliance of Islamic banks with the sharia principles regarding the products and operations.Originality/value: The novelty of this study lies in highlighting the effect of sharia supervisory board as a unique characteristic of sharia governance.
Journal: Journal of Sustainable Finance & Investment
Pages: 299-318
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1749819
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1749819
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:299-318
Template-Type: ReDIF-Article 1.0
Author-Name: Matheus Koengkan
Author-X-Name-First: Matheus
Author-X-Name-Last: Koengkan
Title: Capital stock development in Latin America and the Caribbean region and their effect on investment expansion in renewable energy
Abstract:
The effect of capital stock development that is composed of public, private and public–private partnership capital stock on the installed capacity of renewable energy that is a proxy of renewable energy investment is investigated. Data for 18 countries from Latin America and the Caribbean region in the period between 1990 and –2016 and the Quantile via Moments methodology approach are used. The estimated model indicates that the public and public–private partnership capital stock have a positive effect on the installed capacity of renewable energy, while the private capital stock does not cause any effect on the dependent variable. The positive effect of public and public–private partnership capital stock on the installed capacity of renewable energy is due to the high investment and maintenance costs, complex construction issues and economic returns that are not always high in the renewable energy projects. Indeed, during the initial process of development of these projects, the initial access to capital can be very difficult, and the investment of this kind of energy is often supported by public and public–private partnership capital which are most cheaper if compared with support of private capital only. Moreover, the non-impact of private capital stock is related to the high investment and maintenance costs of renewable energy projects as well the low private capital supply that consequently increases the financing costs that discourages the private participation on investment in renewable energy technologies.
Journal: Journal of Sustainable Finance & Investment
Pages: 612-629
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1796100
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1796100
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:612-629
Template-Type: ReDIF-Article 1.0
Author-Name: Drew Riedl
Author-X-Name-First: Drew
Author-X-Name-Last: Riedl
Title: Why market actors fuel the carbon bubble. The agency, governance, and incentive problems that distort corporate climate risk management
Abstract:
Similar to the housing bubble, a carbon bubble is being fueled by misaligned corporate governance structures and market incentives that distort capital allocation. Science indicates that a rapid energy transition is needed. However, oil and gas reserves already vastly exceed what can be consumed and continue to increase. A significant portion of fossil fuel assets will eventually become ‘stranded’ – prematurely obsolete over their expected lives. This article examines the various market actors and motivations that are distorting corporate and financial climate risk management. Incentives and structural impediments among key market participants such as short-termism/myopia, long-term arbitrage costs, agency costs / career self-interest, and analytical and cognitive limitations (e.g. bounded rationality), exacerbate the problem. Recognition of these motivations is a ‘heads up’ for shareholders, investors and others to better manage risk.
Journal: Journal of Sustainable Finance & Investment
Pages: 407-422
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1769986
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1769986
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:407-422
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Statement of Retraction: Nexus between sustainable economic growth and foreign private investment: evidence from emerging and developed economies
Journal: Journal of Sustainable Finance & Investment
Pages: 669-669
Issue: 2
Volume: 12
Year: 2022
Month: 04
X-DOI: 10.1080/20430795.2022.2050620
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2050620
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:669-669
Template-Type: ReDIF-Article 1.0
Author-Name: Ainan Memon
Author-X-Name-First: Ainan
Author-X-Name-Last: Memon
Author-Name: Waqar Akram
Author-X-Name-First: Waqar
Author-X-Name-Last: Akram
Author-Name: Ghulam Abbas
Author-X-Name-First: Ghulam
Author-X-Name-Last: Abbas
Title: Women participation in achieving sustainability of microfinance institutions (MFIs)
Abstract:
This paper identifies the impact of different roles of female participation (i.e. female borrower, board member, manager, and loan officer) in achieving financial sustainability and outreach of MFIs. We used global panel data from 1999 to 2017 and employed panel-ordinary least square (OLS), fixed-effect model. Moreover, we employed Two-Stage Least Square (2SLS) to resolve the endogeneity problem. We found that female as a borrower, board member and manager has a significant favorable influence on outreach except for female loan officer. However, these have significant negative impact on financial sustainability except female manager. The estimates also indicate that female participation has more impact on outreach than financial sustainability. Our study have implications for devising target market strategy, recruitment, and leadership style strategy for the microfinance sector to achieve poverty reduction, gender equality, and women empowerment.
Journal: Journal of Sustainable Finance & Investment
Pages: 593-611
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1790959
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1790959
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:593-611
Template-Type: ReDIF-Article 1.0
Author-Name: Paola D'Orazio
Author-X-Name-First: Paola
Author-X-Name-Last: D'Orazio
Author-Name: Philipp Löwenstein
Author-X-Name-First: Philipp
Author-X-Name-Last: Löwenstein
Title: Mobilising investments in renewable energy in Germany: which role for public investment banks?
Abstract:
Although renewable energy investments are not characterized by climate change mitigation as their primary objective, they still target activities that are related to the reduction of GHG emissions and are thus crucial for the transition to a low-carbon economy. The paper offers an analysis of the peculiarity of the German public finance framework aimed at renewable energy financing. On the one hand, it quantifies the amount of public financial capital, and types of financial instruments, devoted to renewable energy starting from 2010. On the other hand, it finds a strong relationship between public funding and the mobilization of private renewable energy investments. Our results point out that, despite the rapid growth of renewable energy investments in the past decades and the progressive reduction of GHG emissions, the country is facing difficulties in meeting the desired targets.
Journal: Journal of Sustainable Finance & Investment
Pages: 451-474
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1777062
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1777062
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:451-474
Template-Type: ReDIF-Article 1.0
Author-Name: Toan Luu Duc Huynh
Author-X-Name-First: Toan Luu Duc
Author-X-Name-Last: Huynh
Title: When ‘green’ challenges ‘prime’: empirical evidence from government bond markets
Abstract:
We examined co-movement between green bonds and triple-A government bonds during December 2008–November 2019. We determined that two markets followed the heavy tail dependence using Student’s t-copulas. Using transfer entropy, further evidence was obtained for the causal relationship between the two markets, which was described by three categories such as ‘no effect,’ ‘mono-direction,' and ‘bi-direction'; this relationship indicated the sender and the receiver of return shocks on these markets. Our results highlight the presence of contagion risk between green bonds and prime government bonds, which has practical implications for risk management.
Journal: Journal of Sustainable Finance & Investment
Pages: 375-388
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1769984
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1769984
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:375-388
Template-Type: ReDIF-Article 1.0
Author-Name: Richard P. Gregory
Author-X-Name-First: Richard P.
Author-X-Name-Last: Gregory
Title: Social capital and capital structure
Abstract:
The nature of how capital structure can affect firm value is often investigated in the discipline of financial economics. Less investigated is how the nature of the type of assets can affect the choice of capital structure! I demonstrate that in the context of a Modigliani-Miller-type model that a firm financing social capital and physical capital will favor equity financing over debt financing without bankruptcy. With bankruptcy, debt financing will be used, but equity financing will be favored by firms that use large amounts of social capital, as it will increase their value. This demonstrates that social capital alters the financing relationship and helps to explain the preference of firms for equity financing.
Journal: Journal of Sustainable Finance & Investment
Pages: 655-668
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1796418
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1796418
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:655-668
Template-Type: ReDIF-Article 1.0
Author-Name: Berthold M. Kuhn
Author-X-Name-First: Berthold M.
Author-X-Name-Last: Kuhn
Title: Sustainable finance in Germany: mapping discourses, stakeholders, and policy initiatives
Abstract:
The topic of sustainable finance is of growing interest for political scientists as we witness a series of new policy initiatives, regulations, and campaigns at global, supranational, and national levels. This paper aims to contribute to a better understanding of discourses and initiatives related to the promotion of sustainable finance in Germany. It sheds light on the role and actions of different stakeholders in this field, including government-led policy initiatives, the banking and insurance sector, as well as nonprofit organisations and their networks. Interviews were carried out with three mainstream banks and one asset management group on how they are responding to this new trend in finance. For a long time, Germany has not been a frontrunner in sustainable finance but latest figures show a strong upward trend. This paper argues that many initiatives from different types of stakeholders, including civil society organisations, have contributed to broadening debates and deepening discourses and, thus, have promoted the mainstreaming of sustainable finance in Germany. Initiatives at the global level and at the level of the European Union, especially the EU Action Plan on Sustainable Finance, resonate well in Germany.
Journal: Journal of Sustainable Finance & Investment
Pages: 497-524
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1783151
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1783151
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:497-524
Template-Type: ReDIF-Article 1.0
Author-Name: Andrey S. Nechaev
Author-X-Name-First: Andrey S.
Author-X-Name-Last: Nechaev
Author-Name: Sergey V. Zakharov
Author-X-Name-First: Sergey V.
Author-X-Name-Last: Zakharov
Author-Name: Yuliya N. Barykina
Author-X-Name-First: Yuliya N.
Author-X-Name-Last: Barykina
Author-Name: Marina V. Vel'm
Author-X-Name-First: Marina V.
Author-X-Name-Last: Vel'm
Author-Name: Olga N. Kuznetsova
Author-X-Name-First: Olga N.
Author-X-Name-Last: Kuznetsova
Title: Forming methodologies to improving the efficiency of innovative companies based on leasing tools
Abstract:
This study is relevant since the formation of methodologies to improve the efficiency of innovative leasing-based companies is vital since the leasing form of financing are significant in updating the fixed assets of small and medium enterprises. The aim is to create an original leasing tool to improve the efficiency of innovative companies. The study uses comparative analysis, economic and mathematical modeling of synthesis, and graphical methods of data processing. Methodology to use leasing tools to improve the efficiency of innovative enterprises are presented. The result is the method of calculating lease payments for operating leasing regarding both the method of calculating depreciation based on the sum of years and the amounts of insurance payments for financial and property insurance. This method allows those who uses operational leasing to vary the indicators that form the lease payment through a variable coefficient of the depreciable part of the leasing property.
Journal: Journal of Sustainable Finance & Investment
Pages: 536-553
Issue: 2
Volume: 12
Year: 2022
Month: 4
X-DOI: 10.1080/20430795.2020.1784681
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1784681
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:2:p:536-553
Template-Type: ReDIF-Article 1.0
Author-Name: Mirwais Parsa
Author-X-Name-First: Mirwais
Author-X-Name-Last: Parsa
Title: Efficiency and stability of Islamic vs. conventional banking models: a meta frontier analysis
Abstract:
This paper aims to compare the efficiency, technological gap, and stability of Islamic and conventional banks in the GCC region. We estimate group-specific cost frontiers for each banking type, and a Meta cost frontier for all banks to draw insights on the technological heterogeneity between the GCC Islamic and conventional banks. In the second stage analysis, we use the Generalized Method of Moments (GMM) to highlight the major determinants of bank efficiency in GCC countries. We also investigate the differences, if any, in the stability of Islamic and conventional banks against the 2007–08 global financial crisis. A panel dataset of 72 banks over the period 2005–2011 that covers the crucial period of the global financial crisis is used for the analysis. The results show that there is no statistically significant difference in mean efficiency between Islamic and conventional banks when efficiency is measured relative to the group frontier. But, Meta Frontier Analysis that accounts for the differences in the modalities of the two banking systems reveals that Islamic banking technology is not at par with the industry’s standard. The decomposition of the efficiency scores indicates that the pure technical efficiency of Islamic banks is significantly higher than that of conventional banks, but Islamic banks are posed to higher dis-economies of scale. The analysis further reveals that the 2007–08 financial turmoil has moderately affected the GCC banking sector; we found no evidence of statistically significant differences in the resilience levels of Islamic and conventional banks against the financial crises.
Journal: Journal of Sustainable Finance & Investment
Pages: 849-869
Issue: 3
Volume: 12
Year: 2022
Month: 7
X-DOI: 10.1080/20430795.2020.1803665
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1803665
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:849-869
Template-Type: ReDIF-Article 1.0
Author-Name: Henry Asante Antwi
Author-X-Name-First: Henry
Author-X-Name-Last: Asante Antwi
Title: Mitigating the destructive outcome of negative environmental stock market behaviours on environmental health security in China
Abstract:
Environmental health security as a developmental goal is directly linked to environmental quality across the globe. China believes that maintaining an attractive, stable and profitable environmental stock market can provide the needed private sector support for national environmental protection initiatives. However, the environmental stock market in China is unstable relative to others, and highly susceptible to frequent and contemporaneous mass movement of investors to perceived safer stocks. This study analysed the degree to which environmental stock investors move away in herds in response to sporadic shocks on the Chinese stock market. Four robust econometric models are used analysed environmental stocks classified as the KGRM MSCI China IMI Environment 10/40 Index. The study shows endemic presence of herding behaviour among investors based on the results of three of the models. If this condition continues, it will negatively affect capital flow for environmental protection and affect environmental health security in China.
Journal: Journal of Sustainable Finance & Investment
Pages: 870-885
Issue: 3
Volume: 12
Year: 2022
Month: 7
X-DOI: 10.1080/20430795.2020.1809291
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1809291
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:870-885
Template-Type: ReDIF-Article 1.0
Author-Name: Ben Caldecott
Author-X-Name-First: Ben
Author-X-Name-Last: Caldecott
Title: Post Covid-19 stimulus and bailouts need to be compatible with the Paris Agreement
Abstract:
Covid-19 recovery efforts via public and private finance should not support assets and companies that are incompatible with the Paris Agreement. Yet even before the current crisis, there was a lack of agreement about what investor portfolio or bank loan book alignment with climate change outcomes actually means, and what assets are (in)compatible with different carbon budgets and global warming thresholds. We need to clarify this urgently and embed it within decision-making frameworks. Assessing (in)compatibility with a warming threshold should take account of carbon lock-in. We also need to develop appropriate confidence levels for measuring (in)compatibility. The state of (in)compatibility changes under different circumstances and targets for alignment should be set in a way that explicitly acknowledges these uncertainties. A portfolio with a lower confidence level would be less desirable than one with the same level of alignment and a higher level of confidence.
Journal: Journal of Sustainable Finance & Investment
Pages: 886-893
Issue: 3
Volume: 12
Year: 2022
Month: 7
X-DOI: 10.1080/20430795.2020.1809292
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1809292
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:886-893
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Syafiq Abdullah
Author-X-Name-First: Mohammad Syafiq
Author-X-Name-Last: Abdullah
Author-Name: J. S. Keshminder
Author-X-Name-First: J. S.
Author-X-Name-Last: Keshminder
Title: What drives green sukuk? A leader’s perspective
Abstract:
The growing level of interest towards climate change adaptation and mitigation calls for sovereign and corporate entities to integrate green sukuk into their green initiatives while concurrently meeting the demands of Islamic finance players. However, the current performance shown by the global green sukuk market does not meet the expectation, whereas the limited amount of studies providing clear evidence on the actual drivers impacting green sukuk issuance is an obstacle. Therefore, this study aimed to explore the drivers influencing green sukuk issuance and identify the mechanisms underlying each of these drivers in order to propose strategic actions geared for the policymakers to drive its presence. This was achieved through a qualitative case study conducted with the participation of green sukuk issuers in Malaysia. As a result, it was revealed that competitiveness, legitimation and ecological responsibility influenced the issuance of green sukuk. Hence, the findings may inspire the policymakers towards utilising the roles of green sukuk drivers and positioning a comprehensive attempt in boosting its presence. This can be potentially achieved by an increased amount of favourable legislative measures and applicable promotion and education strategies of the green agenda for a strengthened green sukuk market.
Journal: Journal of Sustainable Finance & Investment
Pages: 985-1005
Issue: 3
Volume: 12
Year: 2022
Month: 7
X-DOI: 10.1080/20430795.2020.1821339
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1821339
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:985-1005
Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Martin Mankata
Author-X-Name-First: Lawrence Martin
Author-X-Name-Last: Mankata
Author-Name: De-Graft Owusu-Manu
Author-X-Name-First: De-Graft
Author-X-Name-Last: Owusu-Manu
Author-Name: M. Reza Hosseini
Author-X-Name-First: M. Reza
Author-X-Name-Last: Hosseini
Author-Name: David John Edwards
Author-X-Name-First: David John
Author-X-Name-Last: Edwards
Title: Analysis of success-dependent factors for green bond financing of infrastructure projects in Ghana
Abstract:
Globally, green bonds have experienced a fair share of handicaps within the countries of issuance. In lieu of Ghana announcing the possibility of its first green bonds, it is crucial that lessons are taken from the past developments to reinforce the prospects of a salutary rollout. This paper explores factors recommended as success dependent in the Ghanaian markets. A quantitative approach is employed. Twelve factors are extracted from a review of the available literature and converted into a questionnaire targeted at professionals in financial institutions. This included managers and financial analysts, as well as top management personnel. In total, 54 questionnaires were distributed. A total of 32 responses were received, proportional to a response rate of 60.37% and was analyzed with relative importance index and one-sample t-test. The results indicate that ‘Good Credit Ratings, Provision of Local Guidelines, Proper Green Qualifications Criteria, and Prioritizing Viable Projects’ are highest ranked factors. It is important that these are incorporated in the framework to be designed for the rollout of green bonds in the Ghana. Considerations should also be made with respect to the culture and state of the financial markets in the country while bringing out the appropriate structure to facilitate the issuances.
Journal: Journal of Sustainable Finance & Investment
Pages: 832-848
Issue: 3
Volume: 12
Year: 2022
Month: 7
X-DOI: 10.1080/20430795.2020.1803640
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1803640
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:832-848
Template-Type: ReDIF-Article 1.0
Author-Name: Aditya Pratama Nandiwardhana
Author-X-Name-First: Aditya Pratama
Author-X-Name-Last: Nandiwardhana
Author-Name: Dan Cudjoe
Author-X-Name-First: Dan
Author-X-Name-Last: Cudjoe
Author-Name: Dudi Permana
Author-X-Name-First: Dudi
Author-X-Name-Last: Permana
Title: A sustainable development assessment of Indonesia’s state banks financing for the industrial and non-industrial sector
Abstract:
Global warming has adversely affected the environment and other living aspects. In addition to being a result of increased industrial and non-industrial sector activity, state bank financing aimed at both sectors can provide positive contributions to sustainable development index while also providing a negative impact. This paper results revealed that although state bank financing provides a proportion of approximately 15% and 5% for all sectors with no long-term relationship, results from IRF formative analysis can discover which sector financing still lacks sustainable development behavior. Furthermore, IRF reflective analysis in this study completes the explanation that the index can reveal financing that is ready to support sustainable development. Finally, this research findings show that sustainable development policies and regulations are not the sole determinants to implement sustainable strategy initiatives. However, access to institutional financing, sufficient short-term financing, and technology availability will encourage Indonesia’s sustainable development financing strategy.
Journal: Journal of Sustainable Finance & Investment
Pages: 894-911
Issue: 3
Volume: 12
Year: 2022
Month: 7
X-DOI: 10.1080/20430795.2020.1809964
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1809964
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:894-911
Template-Type: ReDIF-Article 1.0
Author-Name: Carolina Robino
Author-X-Name-First: Carolina
Author-X-Name-Last: Robino
Author-Name: Edward T. Jackson
Author-X-Name-First: Edward T.
Author-X-Name-Last: Jackson
Title: Editorial: growing gender lens investing in emerging markets
Abstract:
The rapid scaling up of all forms of sustainable finance has become a priority of the international community. This task is especially crucial for gender lens investing (GLI), whose growth in low- and middle-income countries—though dynamic, innovative, and gaining momentum—remains too slow, fragmented, and Northern-driven, not only in terms of the origin of capital but also in its design and implementation. This special issue of multidisciplinary papers contributes to pushing the frontiers of GLI growth forward in five areas: the role and scope of GLI; the importance of the care economy; GLI implementation strategies; Southern-led, women-led capital mobilization; and the interactions of gender and performance in investee firms. Driven by reciprocal scholar-practitioner partnerships, future research on the growth of gender lens investing in emerging markets should be Southern directed, methodologically plural, anchored in open data, and actionable in real time.
Journal: Journal of Sustainable Finance & Investment
Pages: 671-683
Issue: 3
Volume: 12
Year: 2022
Month: 07
X-DOI: 10.1080/20430795.2022.2070121
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2070121
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:671-683
Template-Type: ReDIF-Article 1.0
Author-Name: Sarwar Uddin Ahmed
Author-X-Name-First: Sarwar Uddin
Author-X-Name-Last: Ahmed
Author-Name: Samiul Parvez Ahmed
Author-X-Name-First: Samiul Parvez
Author-X-Name-Last: Ahmed
Author-Name: Uttam Karmaker
Author-X-Name-First: Uttam
Author-X-Name-Last: Karmaker
Author-Name: Rooslan Mizan
Author-X-Name-First: Rooslan
Author-X-Name-Last: Mizan
Title: Institutional investment and corporate social performance: aggregated time-Series evidence from an emerging economy
Abstract:
In this study, we examined the hypothesis that higher corporate social performance results in higher institutional investment for firms in emerging economies like Bangladesh. Aggregated data of eight years with three-point data were examined by using time-series regression analysis, supplemented by data validity and robustness check, to verify the relationship. We find a positive, insignificant but gradually improving relationship between institutional investment and corporate social performance. Our findings concluded that policy-led measures might better work for emerging economies in ensuring social responsibility initiatives.
Journal: Journal of Sustainable Finance & Investment
Pages: 958-984
Issue: 3
Volume: 12
Year: 2022
Month: 7
X-DOI: 10.1080/20430795.2020.1815509
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1815509
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:958-984
Template-Type: ReDIF-Article 1.0
Author-Name: Ruta Aidis
Author-X-Name-First: Ruta
Author-X-Name-Last: Aidis
Author-Name: Sarah Eissler
Author-X-Name-First: Sarah
Author-X-Name-Last: Eissler
Author-Name: Nicole Etchart
Author-X-Name-First: Nicole
Author-X-Name-Last: Etchart
Author-Name: Renata Truzzi de Souza
Author-X-Name-First: Renata
Author-X-Name-Last: Truzzi de Souza
Title: Taking small steps together: incorporating a gender lens approach for small and growing businesses - a case study
Abstract:
Through laws and everyday practices, formal and informal institutions exert gendered effects that increase inequalities between women and men. Impact investing firms can act as catalysts for shifting informal norms and customs that negatively affect women as entrepreneurs, employees, and suppliers. Gender lens investing (GLI) plays a critical role in guiding investments with the objective of women's empowerment and more equitable workplaces and communities. Although various GLI metrics and screening tools exist, little research has examined how small impact investment firms can increase gender inclusive policies and practices in existing portfolios of social enterprises led by mixed gender founding teams. This paper presents a case study that chronicles the initial steps taken by NESsT, a small impact investing firm, in piloting gender inclusive policies and practices in its portfolio companies and internal operations. We discuss the pilot results, findings, key takeaways, and recommendations for integrating GLI into investment portfolios.
Journal: Journal of Sustainable Finance & Investment
Pages: 724-751
Issue: 3
Volume: 12
Year: 2022
Month: 07
X-DOI: 10.1080/20430795.2021.2012116
File-URL: http://hdl.handle.net/10.1080/20430795.2021.2012116
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:724-751
Template-Type: ReDIF-Article 1.0
Author-Name: Rebekah Avard
Author-X-Name-First: Rebekah
Author-X-Name-Last: Avard
Author-Name: Moses Mukuru
Author-X-Name-First: Moses
Author-X-Name-Last: Mukuru
Author-Name: M. J. Liesner
Author-X-Name-First: M. J.
Author-X-Name-Last: Liesner
Title: Measuring the women’s economic empowerment generated by impact investing; testing the QuIP method on an investment in Uganda’s cotton sector
Abstract:
Impact investors and development finance institutions are starting to proactively examine gendered impacts to ensure their investments progress the opportunities available to women instead of reproducing existing inequalities. In October 2020, we trialled the use of the Qualitative Impact Protocol (QuIP) method to measure empowerment changes created by an investment into a cotton company in Uganda. The QuIP method is a qualitative approach to impact evaluation which assesses whether an investment, is achieving its intended impact. We found that the method worked with the impact investing operating model, required minimal input from the investee company, reduced response bias, and addressed contribution without the need for a baseline. The trial generated lessons on investee selection, geographical scope and blindfolding which can improve the use of this method for impact investing. This trial has confirmed the value of a method that other investors can now consider when measuring the gendered impact of their work.
Journal: Journal of Sustainable Finance & Investment
Pages: 752-762
Issue: 3
Volume: 12
Year: 2022
Month: 07
X-DOI: 10.1080/20430795.2021.2012115
File-URL: http://hdl.handle.net/10.1080/20430795.2021.2012115
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:752-762
Template-Type: ReDIF-Article 1.0
Author-Name: Ivan Faiella
Author-X-Name-First: Ivan
Author-X-Name-Last: Faiella
Author-Name: Luciano Lavecchia
Author-X-Name-First: Luciano
Author-X-Name-Last: Lavecchia
Title: The carbon content of Italian loans
Abstract:
There is a growing emphasis on the possibility that climate-related financial risks – such as an abrupt transition to a low-carbon economy – might increase the financial vulnerability of borrowers with consequences for lenders and, eventually, on the financial system as a whole. This article presents a first insight on the carbon content of business loans in Italy, comparing three methods of identifying the most exposed sectors. According to our estimates, the exposure of the Italian financial system in 2018 ranged between 8 and 10.2 per cent of banks’ total assets. This information is the starting point from which to evaluate, within a climate-scenario framework, how different climate policies could influence the stability of the banking sector.
Journal: Journal of Sustainable Finance & Investment
Pages: 939-957
Issue: 3
Volume: 12
Year: 2022
Month: 7
X-DOI: 10.1080/20430795.2020.1814076
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1814076
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:939-957
Template-Type: ReDIF-Article 1.0
Author-Name: Valentina Marquez-Cardenas
Author-X-Name-First: Valentina
Author-X-Name-Last: Marquez-Cardenas
Author-Name: Juan David Gonzalez-Ruiz
Author-X-Name-First: Juan David
Author-X-Name-Last: Gonzalez-Ruiz
Author-Name: Eduardo Duque-Grisales
Author-X-Name-First: Eduardo
Author-X-Name-Last: Duque-Grisales
Title: Board gender diversity and firm performance: evidence from Latin America
Abstract:
This study aims at analysing the relationship between board gender diversity (BGD) and financial performance for firms with headquarters based in Latin America (LatAm). Using panel data from 243 listed firms during the period 2012–2018, we find that BGD in LatAm does not lead to any change in firm performance, mainly because the underrepresentation of women on boards in the region compared to their male counterparts. As a result, the ability to improve the firms’ reputation and the relationships with stakeholders as well as the capability to better monitor performance and bring new ideas by female board members are then unavailable to enhance the firms’ performance. The paper also analyses the moderating effect of board independence on the relationship between BGD and firm performance. These study’s findings may be used for providing a roadmap that researchers and investorss can use to improve their understanding of BGD.
Journal: Journal of Sustainable Finance & Investment
Pages: 785-808
Issue: 3
Volume: 12
Year: 2022
Month: 07
X-DOI: 10.1080/20430795.2021.2017256
File-URL: http://hdl.handle.net/10.1080/20430795.2021.2017256
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:785-808
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Author-Name: The Editors
Title: Correction
Journal: Journal of Sustainable Finance & Investment
Pages: 1006-1007
Issue: 3
Volume: 12
Year: 2022
Month: 7
X-DOI: 10.1080/20430795.2019.1612654
File-URL: http://hdl.handle.net/10.1080/20430795.2019.1612654
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:1006-1007
Template-Type: ReDIF-Article 1.0
Author-Name: Ben Caldecott
Author-X-Name-First: Ben
Author-X-Name-Last: Caldecott
Title: Defining transition finance and embedding it in the post-Covid-19 recovery
Abstract:
While Transition Finance is increasingly entering the sustainable finance discourse, particularly among practitioners, it is often poorly defined, and there is currently no agreed definition in the literature. I propose a definition for Transition Finance and outline some of the potential benefits associated with the use of this definition. I also argue that Covid-19 related stimulus and bailouts, with the attendant increase in government backed financing facilities for counterparties, could ensure Transition Finance is embedded into the design of these financing facilities. Doing so would accelerate the wider adoption and mainstreaming of Transition Finance.
Journal: Journal of Sustainable Finance & Investment
Pages: 934-938
Issue: 3
Volume: 12
Year: 2022
Month: 7
X-DOI: 10.1080/20430795.2020.1813478
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1813478
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:934-938
Template-Type: ReDIF-Article 1.0
Author-Name: Jessica Espinoza Trujano
Author-X-Name-First: Jessica
Author-X-Name-Last: Espinoza Trujano
Author-Name: Anne-Marie Lévesque
Author-X-Name-First: Anne-Marie
Author-X-Name-Last: Lévesque
Title: Development finance institutions and the care economy: opportunities for building more resilient and gender-equitable economies
Abstract:
Development finance institutions (DFIs) play a major role in mobilizing private sector investments in developing countries. While there has recently been an increasing interest among DFIs in gender-lens investing, these efforts have been somewhat blind to the question of women’s unpaid work and have not yet led to a stronger investment focus on the care economy. Adopting what has been defined by other feminist scholars as a transformative approach to care, this article analyses the potential transformative effects of private sector investments in the care economy by DFIs to help build more resilient and gender-equitable economies following the global COVID-19 pandemic. The authors find there is significant potential for DFIs to approach investments with a more strategic gender- and care-lens and contribute to the recognition, reduction, redistribution, reward, and representation of care work, in line with their objective to promote sustainable socioeconomic development in developing countries.
Journal: Journal of Sustainable Finance & Investment
Pages: 704-723
Issue: 3
Volume: 12
Year: 2022
Month: 07
X-DOI: 10.1080/20430795.2022.2030662
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2030662
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:704-723
Template-Type: ReDIF-Article 1.0
Author-Name: Francoise Contreras
Author-X-Name-First: Francoise
Author-X-Name-Last: Contreras
Author-Name: Karla Soria-Barreto
Author-X-Name-First: Karla
Author-X-Name-Last: Soria-Barreto
Author-Name: Sergio Zuniga-Jara
Author-X-Name-First: Sergio
Author-X-Name-Last: Zuniga-Jara
Title: Managerial support and innovative work behaviour in B corps: Examining the effect of female employee work engagement and corporate reputation
Abstract:
B Corps aim to produce a positive impact on society and the environment while developing the organizational goals through a sustainable agenda. For this purpose, B Corps need innovative employees that contribute to increase their competitiveness, making them more attractive to investors. Based on the social exchange theory, this research proposes a model of innovative work behaviour in women that work in Latin America B Corps, hypothesizing that this behaviour can be influenced by managerial support. Likewise, the mediating role of employees’ work engagement in this relationship is analysed. Besides, the moderator role of reputation was explored. The sample consisted of 242 female employees from 16 B Corps located in Latin America. The results show that managerial support has effects on innovative work behaviour, both direct and through employees’ work engagement. The organizational reputation of the B Corps has demonstrated being a valid moderator of this relationship.
Journal: Journal of Sustainable Finance & Investment
Pages: 809-831
Issue: 3
Volume: 12
Year: 2022
Month: 07
X-DOI: 10.1080/20430795.2021.2017255
File-URL: http://hdl.handle.net/10.1080/20430795.2021.2017255
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:809-831
Template-Type: ReDIF-Article 1.0
Author-Name: Tia Subramanian
Author-X-Name-First: Tia
Author-X-Name-Last: Subramanian
Author-Name: Arianna Muirow
Author-X-Name-First: Arianna
Author-X-Name-Last: Muirow
Author-Name: Joy Anderson
Author-X-Name-First: Joy
Author-X-Name-Last: Anderson
Title: Evolving the gender analysis in gender lens investing: moving from counting women to valuing gendered experience
Abstract:
We examine the quality of the gender lens investing field’s underlying gender analysis to assess how a field built to redress marginalization analyzes that marginalization. In examining the evolution of gender and queer theory, we question the validity of the dominant definition of gender used in investing. Since its institutionalization, gender studies has evolved on the grounds that gender experience is dynamic and must be understood through diverse lived experiences. Drawing on current theory in gender and queer studies from across the Global North and South, we find that a comprehensive understanding of gender encompasses gender identity and sexuality as well as social, economic, and geopolitical considerations. We find a significant gap between gender lens investing's primary modes of analysis and lessons from scholars. Acknowledging the challenge of translating theory into financial practice, we suggest steps towards an investment practice that better mirrors how gender operates in the world.
Journal: Journal of Sustainable Finance & Investment
Pages: 684-703
Issue: 3
Volume: 12
Year: 2022
Month: 07
X-DOI: 10.1080/20430795.2021.2001300
File-URL: http://hdl.handle.net/10.1080/20430795.2021.2001300
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:684-703
Template-Type: ReDIF-Article 1.0
Author-Name: Yuliya Nichkasova
Author-X-Name-First: Yuliya
Author-X-Name-Last: Nichkasova
Author-Name: Halina Shmarlouskaya
Author-X-Name-First: Halina
Author-X-Name-Last: Shmarlouskaya
Author-Name: Kulyash Sadvokassova
Author-X-Name-First: Kulyash
Author-X-Name-Last: Sadvokassova
Title: Financial market sustainable development of Kazakhstan: scenario approach based on fuzzy cognitive maps
Abstract:
Access to financial resources is the main constraint for sustainable economic growth in Kazakhstan. Kazakhstan’s financial institutions, being relatively small in size and unbalanced, cannot finance development through market mechanisms. The model that reflects the system’s sustainable development was constructed based on the fuzzy cognitive map to consolidate 31 indicators of three types of the subsystem: economic, financial institutions, and financial markets to reflect the viability and balance of the system development. The time-series data of Kazakhstan’s economic and financial development of Kazakhstan from 2014 to 2019 with prognosis to 2025 was used. Based on the results of our research, we concluded that the implementation of policies for sustainable development should include not only specific aims for the financial market but also for financial institutions and the economy. Moreover, sustainability is reinforced by the development of integration, innovativeness, and accessibility, which forms the key aspects of financial system state policy development.
Journal: Journal of Sustainable Finance & Investment
Pages: 912-933
Issue: 3
Volume: 12
Year: 2022
Month: 7
X-DOI: 10.1080/20430795.2020.1812293
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1812293
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:912-933
Template-Type: ReDIF-Article 1.0
Author-Name: Jessica Espinoza Trujano
Author-X-Name-First: Jessica
Author-X-Name-Last: Espinoza Trujano
Author-Name: Lelemba Phiri
Author-X-Name-First: Lelemba
Author-X-Name-Last: Phiri
Title: Triple dissonance: women-led funds. With a gender lens. In Africa.
Abstract:
This paper contributes to current debates in the field of entrepreneurship on the persistent gender gap in capital allocation to entrepreneurs. Drawing on recent theories of entrepreneurial belonging (Stead, V. 2017. “Belonging and Women Entrepreneurs: Women’s Navigation of Gendered Assumptions in Entrepreneurial Practice.” International Small Business Journal 35 (1): 61–77. doi:10.1177/0266242615594413; Birkner, S. 2020. “To Belong or Not to Belong, That Is the Question?! Explorative Insights on Liminal Gender States within Women’s STEMpreneurship.” International Entrepreneurship and Management Journal 16: 115–136. doi:10.1007/s11365-019-00605-5), we conducted narrative research to gain rare insights into the gendered challenges faced by female fund managers in private equity in Sub-Saharan Africa during the fundraising process. We discover a triple dissonance between the feminine normative frames of womanhood and the male normative frames of entrepreneurship and private equity, compounded by intersectional stereotypes of Africa. Our research offers novel, exploratory insights into what has been a blind spot in the emerging field of gender-lens investing: how gender bias in capital allocation to entrepreneurs is reinforced by gender bias in capital allocation to fund managers. We conclude that the field must move beyond viewing African women as beneficiaries of empowerment and put them in power of investment decisions.
Journal: Journal of Sustainable Finance & Investment
Pages: 763-784
Issue: 3
Volume: 12
Year: 2022
Month: 07
X-DOI: 10.1080/20430795.2021.1990832
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1990832
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:3:p:763-784
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# input file: TSFI_A_1842101_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Felipe Calderon
Author-X-Name-First: Felipe
Author-X-Name-Last: Calderon
Title: Governance mechanisms for sustainable lending: an exploratory study of existing practices
Abstract:
This is an exploratory study which investigates the governance mechanisms created by banks to support the implementation of sustainable lending. A content analysis of the websites of the 62 members of the Global Banking Alliance on Values reveals that evidence-based disclosures demonstrate the commitment of some banks to govern their sustainable lending activities. The publication of the list of loan borrowers emerged as a governance-by-disclosure mechanism in the implementation of sustainable lending. The publication of loan borrowers has contributed to the improvement of information asymmetry in the banking industry. It was also demonstrated how shared values among stakeholders could contribute to the development ofeffective governance mechanisms. Based on the content analyses, the study concludes with two recommendations. First, the banking industry should consider the publication of loan borrowers to promote discipline within the banking sector. Second, the published information provides evidence to the promotion of sustainability practices.
Journal: Journal of Sustainable Finance & Investment
Pages: 1146-1166
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1842101
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1842101
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:4:p:1146-1166
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# input file: TSFI_A_1872347_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kat Buchmann
Author-X-Name-First: Kat
Author-X-Name-Last: Buchmann
Author-Name: Aled Jones
Author-X-Name-First: Aled
Author-X-Name-Last: Jones
Author-Name: Yiyun Zhang
Author-X-Name-First: Yiyun
Author-X-Name-Last: Zhang
Author-Name: Johanna Schönecker
Author-X-Name-First: Johanna
Author-X-Name-Last: Schönecker
Title: Key challenges in crossborder interconnector finance
Abstract:
This paper assesses causes for, and challenges related to, the funding gap in infrastructure required for a large scale increase of renewable energy in the European energy mix, specifically crossborder interconnectors to transport renewable electricity from areas with high renewable energy potential and production to centres of energy consumption. We identify eight barriers that need to be addressed in order to make investment in interconnectors more attractive. We delineate both technological and governance/legislative barriers to investments in this area. Our analysis is based on a scoping literature review and a workshop that was held in London involving finance and legal experts.
Journal: Journal of Sustainable Finance & Investment
Pages: 1285-1307
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2021.1872347
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1872347
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:4:p:1285-1307
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# input file: TSFI_A_1848142_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ben Caldecott
Author-X-Name-First: Ben
Author-X-Name-Last: Caldecott
Title: Climate risk management (CRM) and how it relates to achieving alignment with climate outcomes (ACO)
Abstract:
Instead of incidentally contributing to Alignment with Climate Outcomes (ACO) through Climate Risk Management (CRM) initiatives like the Task Force on Climate-related Financial Disclosures (TCFD), we need specific ways of dealing with and contributing to the challenge of alignment. These need to be articulated, developed, and scaled across the financial system rapidly. Without rebalancing the distribution of effort and spending more time explicitly on ACO, we cannot ever hope to align finance and the financial system with climate change objectives. One of the most significant things policymakers can do to spur rapid ACO is to make ACO targets and transition plans mandatory for all financial institutions as soon as possible.
Journal: Journal of Sustainable Finance & Investment
Pages: 1167-1170
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1848142
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1848142
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Handle: RePEc:taf:jsustf:v:12:y:2022:i:4:p:1167-1170
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# input file: TSFI_A_1826819_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Qianqian Wei
Author-X-Name-First: Qianqian
Author-X-Name-Last: Wei
Author-Name: Sirui Xiao
Author-X-Name-First: Sirui
Author-X-Name-Last: Xiao
Title: Greening the Chinese financial system through experimentations? Assessing the effectiveness of green finance business experimentations in Guangdong, China
Abstract:
The necessity of greening the financial system for sustainability transition has been widely acknowledged and advocated. Experimentation is recognised as an important approach to transforming the financial system and includes promoting innovative practices, building capacity and forming networks. In the real-world settings, the designing and the implementation of experimentations are diverse processes. This study argues that lacking critical reflection and evaluation of the nature of experimentations can jeopardise its role as an agent for transformative changes. By mobilising insights from financial innovation literature and using data drawn from interviews and from financial institutions’ self-reported green finance innovation practices, this study shows that experimentations can be manipulated to validate business-as-usual actions rather than being used as an approach to pursuing more radical innovations. Moreover, we also found that some financial institutions have participated in green finance experimentation in a passive manner, which represents a missed opportunity to build capacities and accumulate knowledge through the experimental process. This study addresses research demands for a more critical empirical re-assessment of the positive narratives regarding inducing transformative changes through experimentations.
Journal: Journal of Sustainable Finance & Investment
Pages: 1069-1084
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1826819
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1826819
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# input file: TSFI_A_1870202_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Isaac Akomea-Frimpong
Author-X-Name-First: Isaac
Author-X-Name-Last: Akomea-Frimpong
Author-Name: David Adeabah
Author-X-Name-First: David
Author-X-Name-Last: Adeabah
Author-Name: Deborah Ofosu
Author-X-Name-First: Deborah
Author-X-Name-Last: Ofosu
Author-Name: Emmanuel Junior Tenakwah
Author-X-Name-First: Emmanuel Junior
Author-X-Name-Last: Tenakwah
Title: A review of studies on green finance of banks, research gaps and future directions
Abstract:
With growing global concern for environmental protection, climate change and sustainable development, policymakers and researchers have recently focused on green finance. In this study, existing studies on green finance in the context of the banking sector have been reviewed with considerations on products and determinants of green finance. The content analysis approach has been used to critically analyse and summarize forty-six (46) relevant studies. The results found green securities, green investments, climate finance, carbon finance, green insurance, green credit and green infrastructural bonds as part of key green finance products of banks. Pertinent determinants the study found to be influencing green finance policies from banks include environmental and climate change policies, interest rates, religion, risks, social inclusion and social justice as well as banking regulations. In theory, this study provides a guide for further studies. The results of the study will assist banks on the key issues to consider in adopting, developing and granting green finance.
Journal: Journal of Sustainable Finance & Investment
Pages: 1241-1264
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1870202
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1870202
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# input file: TSFI_A_1874211_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ardi Gunardi
Author-X-Name-First: Ardi
Author-X-Name-Last: Gunardi
Author-Name: Aldrin Herwany
Author-X-Name-First: Aldrin
Author-X-Name-Last: Herwany
Author-Name: Erie Febrian
Author-X-Name-First: Erie
Author-X-Name-Last: Febrian
Author-Name: Mokhamad Anwar
Author-X-Name-First: Mokhamad
Author-X-Name-Last: Anwar
Title: Research on Islamic corporate social responsibility and Islamic bank disclosures
Abstract:
Sustainable development and corporate social responsibility (CSR) are becoming more prominent in Islamic finance, which is characterized by financial and economic models based on ethical principles and values. Previous research has examined various determinants of Islamic CSR disclosure, but only a few of those studies are based on corporate governance mechanism. Thus, the purpose of this paper is to review previous research and fill gaps using a literature review approach. It analyzes the determinants of Islamic CSR disclosure based on previous findings, then categorizes them into: (1) board structure, (2) ownership structure, (3) CEO power, and (4) shariah governance. The study seeks to offer further knowledge about Islamic CSR, and thus contribute fresh insights to academics, Islamic bank company managers, and governments.
Journal: Journal of Sustainable Finance & Investment
Pages: 1308-1329
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2021.1874211
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1874211
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# input file: TSFI_A_1824889_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Costanza Consolandi
Author-X-Name-First: Costanza
Author-X-Name-Last: Consolandi
Author-Name: Robert G. Eccles
Author-X-Name-First: Robert G.
Author-X-Name-Last: Eccles
Author-Name: Giampaolo Gabbi
Author-X-Name-First: Giampaolo
Author-X-Name-Last: Gabbi
Title: How material is a material issue? Stock returns and the financial relevance and financial intensity of ESG materiality
Abstract:
This paper investigates the role of the intensity and relevance of ESG materiality in equity returns. Adopting the classifications of materiality provided by the Sustainability Accounting Standards Board (SASB), the paper introduces the concept of the financial relevance and financial intensity of ESG materiality in order to estimate how it explains equity returns. The results of the analysis, based on a large sample of U.S. companies included in the Russell 3000 from January 2008 to July 2019 show that not only do ESG rating changes (ESG momentum) have a consistent impact on equity performance, but also that the market seems to reward more those companies operating in industries with a high level of concentration of ESG materiality. The implication is that the equity premium of listed companies is better explained by the concentration of material issues (i.e. the Gini index) than by the ESG momentum.
Journal: Journal of Sustainable Finance & Investment
Pages: 1045-1068
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1824889
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1824889
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# input file: TSFI_A_1848179_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Salah Alhammadi
Author-X-Name-First: Salah
Author-X-Name-Last: Alhammadi
Author-Name: Khaled O. Alotaibi
Author-X-Name-First: Khaled O.
Author-X-Name-Last: Alotaibi
Author-Name: Dzikri F. Hakam
Author-X-Name-First: Dzikri F.
Author-X-Name-Last: Hakam
Title: Analysing Islamic banking ethical performance from Maqāṣid al-Sharī‘ah perspective: evidence from Indonesia
Abstract:
This paper aims to investigate Islamic banking performance based on higher ethical objectives enshrined within Sharī‘ah (Islamic legal rulings); namely, Maqāṣid al-Sharī‘ah. First, we examine the importance of both ethical and social concerns on bank performance in general. Second, we analyse the ethical and social performance of Islamic banks (IBs) based on the Maqāṣid al-Sharī‘ah Index (MSI) that emphasises disclosures related to education, social justice, and redistribution of wealth. Third, we investigate how far IBs have gone towards achieving Maqāṣid al-Sharī‘ah goals during the last decade, post-global financial crises (GFC) period, with a particular focus on Indonesia as a case study. Hence, testing whether IBs achieve socio-economic justice and attain best practice by securing social good. The selected banks’ annual reports were examined, applying content analysis to obtain the necessary data, using the Simple Additive Weighting (SAW) method to determine the level of Maqāṣid in the sample. Empirical evidence suggests that conventional performance measurements do not truly reflect IBs’ higher ethical objectives, and create a deficiency of attaining Maqāṣid al-Sharī‘ah performance in these banks. This research extends the previous literature on evaluating the performance of IBs beyond the financial return, which includes their ethical and social identity based on the Maqāṣid al-Sharī‘ah scale, especially the post-GFC period. The result also reveals that there is a financial cost to achieving the Maqāṣid al-Sharī‘ah, as IBs that achieved high MSI scores have sacrificed financially. This supports the findings of the literature that IBs prefer financial returns over their ethical and social impact.
Journal: Journal of Sustainable Finance & Investment
Pages: 1171-1193
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1848179
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1848179
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# input file: TSFI_A_1891780_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Suzette Viviers
Author-X-Name-First: Suzette
Author-X-Name-Last: Viviers
Author-Name: Johann de Villiers
Author-X-Name-First: Johann
Author-X-Name-Last: de Villiers
Title: Impact investments that have stood the test of time: Historical Homes of South Africa (1966-2020)
Abstract:
Long before the term ‘impact investment’ was coined, Historical Homes of South Africa Limited was established in 1966. This company bought memorable historical buildings that could otherwise have been demolished, restored them, and rented them out at commercial rates. By preserving cultural heritage, they encourage tourism and hence economic growth. As an impact-first impact investor Historical Homes of South Africa not only generates positive, measurable social impacts, but also financial returns. The most important factors that have helped the company obtain and maintain legitimacy over five decades are having clearly defined social impact objectives, and achieving these objectives in an effective and efficient manner. This case study contributes to the literature on cultural heritage preservation and the limited body of knowledge on legitimising the impact investment industry. Impact-first impact investors should focus on consequential, linkage, socio-political and pragmatic legitimacy considerations when interacting with social actors, notably investors and advocacy groups.
Journal: Journal of Sustainable Finance & Investment
Pages: 1009-1026
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2021.1891780
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1891780
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# input file: TSFI_A_1827602_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nisa Vinodkumar
Author-X-Name-First: Nisa
Author-X-Name-Last: Vinodkumar
Author-Name: Ghadah Alarifi
Author-X-Name-First: Ghadah
Author-X-Name-Last: Alarifi
Title: Environmental social governance: a core value to responsible stakeholders and stock market sustainability in the Kingdom of Saudi Arabia
Abstract:
Environmental social governance (ESG) is a framework that assists global financial services in developing strategic ways to hedge operating and financial risks and move toward achieving United Nations’ SDGs. Stakeholders consider ESG as a core value while strategizing their investment decisions in the capital market as these factors have the leveraging potential for risk return trade-off, although they are difficult to measure in financial terms. In the volatile capital markets across the globe, the ability of corporate business models to adapt to changes in the economic environment demands the consideration of ESG reporting by the external stakeholders. Thus there is rising demand for ESG reporting and analysis by external stakeholders, including stock exchanges, investors, financial analysts, and corporations, because they have the leveraging potential for risk return trade-off and for sustainable development. The present study analyzes the ESG scores for all the shares listed in the Tadawul All Share Index (TASI) based on selected ranking tools. The analyzed result reveals the current sustainability landscape of businesses in KSA and suggests how responsible investors can uncover value of investment through ESG and how the benefit of this reliable, consistent, and relevant metrics fosters long-term stock market sustainability. The results of the study will enable investors to strategize their capital market-related investment decisions. The result of analysis reveals the current sustainability landscape of businesses in KSA and suggests how responsible investors can uncover value of investment through ESG scores as they consider the material components that affect corporate and investment performance.
Journal: Journal of Sustainable Finance & Investment
Pages: 1085-1101
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1827602
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# input file: TSFI_A_1861865_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ankasha Arif
Author-X-Name-First: Ankasha
Author-X-Name-Last: Arif
Author-Name: Misbah Sadiq
Author-X-Name-First: Misbah
Author-X-Name-Last: Sadiq
Author-Name: Malik Shahzad Shabbir
Author-X-Name-First: Malik Shahzad
Author-X-Name-Last: Shabbir
Author-Name: Ghulam Yahya
Author-X-Name-First: Ghulam
Author-X-Name-Last: Yahya
Author-Name: Aysha Zamir
Author-X-Name-First: Aysha
Author-X-Name-Last: Zamir
Author-Name: Lydia Bares Lopez
Author-X-Name-First: Lydia
Author-X-Name-Last: Bares Lopez
Title: The role of globalization in financial development, trade openness and sustainable environmental -economic growth: evidence from selected South Asian economies
Abstract:
The aim of this study is to examine the association of financial development, trade openness and sustainable environmental-economic growth among the South Asian countries. This study also identifies which particular country experience more sustainable economic growth in the region. This study collects panel data set range from 1980 to 2018 from World Development Indicators and uses autoregressive distributive lag method for data analysis. The results reveal with these remarks that financial development has a positive and significant impact both in long- and short-run dynamic on environment economic growth of South Asian economies. However, trade openness results regarding pooled mean group, Mean group and common correlated effect mean group are also a positive effect on economic growth. This study is the first-ever attempted for globalization effects to investigate a combined impact on financial development and trade openness on sustainable environmental economic growth regarding South Asian economies.
Journal: Journal of Sustainable Finance & Investment
Pages: 1027-1044
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1861865
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1861865
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# input file: TSFI_A_1857634_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Heidi Tuhkanen
Author-X-Name-First: Heidi
Author-X-Name-Last: Tuhkanen
Author-Name: Gregor Vulturius
Author-X-Name-First: Gregor
Author-X-Name-Last: Vulturius
Title: Are green bonds funding the transition? Investigating the link between companies’ climate targets and green debt financing
Abstract:
Green bonds are considered one of the most important innovations in sustainable finance. However, there is a lack of conceptual and empirical understanding of the role of green bonds in corporate transition to carbon neutrality. This study develops and tests a conceptual framework that links green bonds to climate targets in the context of corporate transition risk management and polycentric climate governance. It is based on an analysis of the twenty largest European green bond issuers in 2018. We find that in most cases there is a disconnect between issuers’ climate targets and their green bond frameworks; and several shortcomings in issuers’ post-issuance reporting. Our results suggest that there is little pressure for green bond issuers to use their proceeds to achieve ambitious science-based targets. Our findings highlight the need for policy action to reduce the risk of greenwashing and to situate the green bond market within planetary boundaries.
Journal: Journal of Sustainable Finance & Investment
Pages: 1194-1216
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1857634
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1857634
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# input file: TSFI_A_1857636_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Samer Abdelhadi
Author-X-Name-First: Samer
Author-X-Name-Last: Abdelhadi
Author-Name: Ala’ Bashayreh
Author-X-Name-First: Ala’
Author-X-Name-Last: Bashayreh
Author-Name: Mohammad W. Alomari
Author-X-Name-First: Mohammad W.
Author-X-Name-Last: Alomari
Title: The effect of fragility on foreign direct investment deterioration: the case of MENA countries
Abstract:
Political stability can’t be isolated anymore from economic issues. In fact, political events became one of the important determinant for many economic phenomena especially in MENA countries. This study aims to test the effect of fragility growth on foreign direct investment growth in 13 of MENA countries from 2007 to 2018. The study employs cointegration test and vector error correction models (VECM) to examine both long-run and short-run causality relationships between the FDI growth and the economic variables (Fragility growth, Openness growth and GDP growth). The panel VECM results suggest that there is a long run causal relationships that show a significant influence of fragility growth, GDP growth and openness growth on the FDI growth. The effect from fragility to FDI estimated to be 22%, and more than 40% of disequilibrium in FDI produced by fragility will corrected annually. This study will help policy-makers in assessing and managing the economic risks they face, which in turn will increase FDI flows and contribute to increasing the country’s economic growth and stability.
Journal: Journal of Sustainable Finance & Investment
Pages: 1232-1240
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1857636
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1857636
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# input file: TSFI_A_1870203_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Khurram Shehzad
Author-X-Name-First: Khurram
Author-X-Name-Last: Shehzad
Author-Name: Liu Xiaoxing
Author-X-Name-First: Liu
Author-X-Name-Last: Xiaoxing
Author-Name: Hayfa Kazouz
Author-X-Name-First: Hayfa
Author-X-Name-Last: Kazouz
Author-Name: Daniel Balsalobre-Lorente
Author-X-Name-First: Daniel
Author-X-Name-Last: Balsalobre-Lorente
Author-Name: Ayoub Zeraibi
Author-X-Name-First: Ayoub
Author-X-Name-Last: Zeraibi
Author-Name: Abdul Rauf
Author-X-Name-First: Abdul
Author-X-Name-Last: Rauf
Title: An asymmetric spillover between China and Pakistan’ stock markets: a comparative analysis before and during COVID-19 crisis
Abstract:
Novel Coronavirus (COVID-19) has prominently exaggerated the stock markets of the world. It has distraught the financial and economic constancy of the globe. The study scrutinized the non-linear behavior of well-known Chinese and Pakistani stock markets, i.e. the Shanghai Composite Index (SSEC) and the Karachi Stock Exchange (KSE-100 index). The analysis utilized the VAR-DCC-MEGARCH model to determine the returns transmission and volatility spillover pattern of these markets during the standard and COVID-19 era. These results inveterate, during normal circumstances, returns generated in the financial markets of Pakistan expressively control the return movements of SSEC. However, control of Chinese stock markets on Pakistan's stock markets in terms of returns remained insignificant. The research evaluated that volatility spillover between the KSE-100 index and SSEC was insignificant during the stable periods. Nonetheless, the statistics of volatility spillovers during the pandemic era confirmed that instability in the SSEC portentously upsurges the uncertainty of the KSE-100 index. Besides, the study reported a significant leverage effect for both markets during the pandemic era. The study revealed that SSEC is the best resort for Pakistani investors to diversify financial risk.
Journal: Journal of Sustainable Finance & Investment
Pages: 1265-1284
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1870203
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1870203
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# input file: TSFI_A_1857635_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Krishna Murari
Author-X-Name-First: Krishna
Author-X-Name-Last: Murari
Title: Risk-adjusted performance evaluation of pension fund managers under social security schemes (National Pension System) of India
Abstract:
Along with the Employees Provident Fund Organisation (EPFO) and central civil services pension schemes, the government of India implemented National Pension System (NPS) architecture in 2009 to provide social security benefits to the poor and underprivileged section of the society in their post-retirement time. Accordingly, various schemes were offered by the listed private Pension Fund Managers (PFMs), and subsequently, the no. of subscribers and corpus also increased over a period of time. But whether the PFMs were able to meet the expectations of the subscribers is the main focus of this study. Using data from the NPS trust organisation’s annual reports and the Bombay Stock Exchange for 2011–2019 market returns, we assess the performance of the listed PFMs under different NPS schemes based on risk-adjusted performance measures viz. Sharpe, Treynor and Jensen’s alpha. Our analysis reveals that LIC Pension Funds Ltd has dominated and performed better than other PFMs under Sharpe ratio & Jensen’s performance measures. The performance of PFMs under Treynor’s ratio indicated the variation in different NPS schemes. However, HDFC pension fund managers outperformed over the other PFMs in the equity and fixed income segment of NPS schemes. The findings of the study imply the holistic comparison of the performance of all the pension fund managers listed under various NPS schemes in India. Besides, the application of risk-adjusted performance measures makes it relevant to catch the attention of the stakeholders such as PFRDA, subscribers and especially the PFMs.
Journal: Journal of Sustainable Finance & Investment
Pages: 1217-1231
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1857635
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1857635
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# input file: TSFI_A_1837501_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ick Jin
Author-X-Name-First: Ick
Author-X-Name-Last: Jin
Title: ESG-screening and factor-risk-adjusted performance: the concentration level of screening does matter
Abstract:
Constructing ESG-screened portfolios aims to reduce the aggregate ESG-risk at the portfolio level by excluding low ESG-score constituents from the selection universe. But ESG-screening imposes limits on potential diversification as well as alters risk exposures to systematic factors. To investigate ESG-screening’s impact on the factor-risk-adjusted performance of portfolios, we construct ESG-screened portfolios consisting of US equity mutual funds according to their returns-based ESG-scores. The result of performance contribution analysis for the sample period from 1999 to 2018 suggests that investors need to treat the concentration level of ESG-screening as a search parameter to balance the costs and benefits of ESG-screening.
Journal: Journal of Sustainable Finance & Investment
Pages: 1125-1145
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1837501
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1837501
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# input file: TSFI_A_1837500_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mahawiya Sulemana
Author-X-Name-First: Mahawiya
Author-X-Name-Last: Sulemana
Author-Name: John Bosco Dramani
Author-X-Name-First: John Bosco
Author-X-Name-Last: Dramani
Title: Effect of financial sector development and institutions on economic growth in SSA. Does the peculiarities of regional blocs matter?
Abstract:
The link between financial sector development (FSD) and economic growth has generated a great deal of interest among academics. Some studies argued that financial sector stimulates growth while others suggested the opposite. Thus, we conducted a comparative analysis of the effect of FSD on economic growth between Economic Community of West African States (ECOWAS) and Southern African Development Community (SADC). In addition, we sought to find out the transmission of FSD through institutional development on economic growth. The results suggested the existence of FSD-led growth in SADC but revealed no statistically significant effect in ECOWAS. Furthermore, the effect of FSD through institutional development supported a positive complementarity effects on growth in both regions but only statistically significant in ECOWAS, suggesting strong institutions complemented FSD effects on growth. We recommended that ECOWAS take steps to improve both political structures and democratic dispensation to boost the development of the financial sector.
Journal: Journal of Sustainable Finance & Investment
Pages: 1102-1124
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2020.1837500
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1837500
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# input file: TSFI_A_1874214_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Rossella Agliardi
Author-X-Name-First: Rossella
Author-X-Name-Last: Agliardi
Title: Green securitisation
Abstract:
A theoretical framework is provided for the innovative tool of green securitisation. We test the effects of this strategy on financing institutions' exposure to climate risk and their alignment with global climate targets. We also estimate bondholders' returns when they invest in these ‘green’ securities. We discuss the extent to which ‘green’ securitisation can be an effective strategy for climate risk management and a promising way to yield more resilient and mission-aligned financing institutions.
Journal: Journal of Sustainable Finance & Investment
Pages: 1330-1345
Issue: 4
Volume: 12
Year: 2022
Month: 10
X-DOI: 10.1080/20430795.2021.1874214
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# input file: TSFI_A_1882236_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mona Solomon Al-Thoblany
Author-X-Name-First: Mona Solomon
Author-X-Name-Last: Al-Thoblany
Author-Name: Muna Ibrahim Alyuosef
Author-X-Name-First: Muna Ibrahim
Author-X-Name-Last: Alyuosef
Title: The role of digital management in improving the performance of tourism sectors in the Kingdom of Saudi Arabia in the light of 2030 vision
Abstract:
Current study expects to distinguish the significance and targets of e-management in the tourism industry areas, notwithstanding its role regarding the improvement in tourism industry administrations that accomplish consumer loyalty, its function in improving the management cycles in the tourism industry establishments, and its significance in accomplishing great arranging in these foundations, A survey was applied to 98 people working in the tourism industry, the most significant of which is that the tourism industry organizations in KSA have total autonomy towards finishing e-administrations for customers, and that e-services in tourism industry in addition to raising the relational abilities and capacities of the organizations and all laborers inside and outside the area, and that advanced innovation helps the administrators of the tourism industry areas in getting to know the projects and work plans of all divisions in the area, which empowers them to get ready sensible designs to actualize these projects.
Journal: Journal of Sustainable Finance & Investment
Pages: 44-58
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1882236
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# input file: TSFI_A_1896987_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Elhachemi Abdelkader Hacine Gherbi
Author-X-Name-First: Elhachemi Abdelkader
Author-X-Name-Last: Hacine Gherbi
Author-Name: Ibrahim Tawfeeq Alsedrah
Author-X-Name-First: Ibrahim Tawfeeq
Author-X-Name-Last: Alsedrah
Title: Does stock market development and COVID-19 pandemic lead to financial crisis: the case of largest Islamic stock exchange market?
Abstract:
This research investigates the short- and long-term effect of COVID-19 pandemic period and the largest Islamic stock market development (SMD) in term of size and market activity (turnover) on financial crises (FCs) indicator and identifies the Granger–causality relationship exist between them. We apply an autoregressive distributed lag technique analysis method in estimating short- and long-run models of this relationship, using 34 monthly observations, from 2018M1 to 2020M10 Islamic stock market of Kingdom of Saudi Arabia (KSA). The short-term result implies that the FC indicator had significant positively affected by the COVID-19 pandemic. However, the long-run model result shows that market size indicator leads to a major FC, while market trade value indicator has negative impact on FC indicator in KSA Tadawul market. In addition, the results show that the only market capital indicator Granger–causes FCs. We concluded that the Saudi policymakers should make new regulations to avoid the negative effect of FC, in order for the growth of its stock market size and trade, for the stability of financial economic in Saudi Arabia. They should add more support to stock market trading to eliminate the potential threat of FC. We believe this is the first empirical study that investigates the short- and long-term effect of SMD, in terms of size and activity development on the FCs volatility in largest Islamic stock exchange market without ignoring the potential effect of COVID-19 pandemic. Also, this research is novel in terms of studying a market that was previously closed to outsiders and has implemented various financial sector reforms in recent years.
Journal: Journal of Sustainable Finance & Investment
Pages: 297-310
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1896987
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1896987
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# input file: TSFI_A_2017257_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Fikile Dube
Author-X-Name-First: Fikile
Author-X-Name-Last: Dube
Author-Name: Ntokozo Nzimande
Author-X-Name-First: Ntokozo
Author-X-Name-Last: Nzimande
Author-Name: Paul-Francois Muzindutsi
Author-X-Name-First: Paul-Francois
Author-X-Name-Last: Muzindutsi
Title: Application of artificial neural networks in predicting financial distress in the JSE financial services and manufacturing companies
Abstract:
This study explored the role of artificial intelligence (AI) in predicting companies’ financial distress. We used Artificial Neural Networks (ANN) to develop and test financial distress prediction models for the financial services and manufacturing companies listed on the Johannesburg Stock Exchange (JSE) for the period 2000–2019. Our constructed ANN Models achieved classification accuracy rates of 81.03 and 96.6 percent for the financial services and manufacturing industries, respectively. Both models could also predict financial distress up to five years prior to the firm being classified as distressed. This study provided key theoretical and practical contributions to the current literature by highlighting the potential role of AI models in solving financial problems. Creditors can use the models built in this study as a default prediction tool, investors as an investment decision-making tool, and for business managers a performance guidance tool to ensure long term financial sustainability.
Journal: Journal of Sustainable Finance & Investment
Pages: 723-743
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.2017257
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# input file: TSFI_A_2030665_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Neha Puri
Author-X-Name-First: Neha
Author-X-Name-Last: Puri
Author-Name: Vikas Garg
Author-X-Name-First: Vikas
Author-X-Name-Last: Garg
Title: A sustainable banking services analysis and its effect on customer satisfaction
Abstract:
The banking system has evolved with time. Earlier, the banks maintained the storage and counting of coins, but the storage was not safe. Then started the concept of lending with interest. The banking system has completely revolutionised the system, and made it easier to transact online. In this study, the main aim is to understand the banking services and how it impacts the level of satisfaction. To conduct the study, a questionnaire was circulated, containing two sections. The first section contains a set of 16 questions containing demographic- and services-related question. Section 2 contains 24 questions, showing a Likert scale to measure the level of satisfaction of the customers. One hundred ten customers of State Bank of India, SBI Branch Gurgaon and Haryana responded to the questionnaire. Different tools such as factor analysis and reliability tests were conducted to find out the relationship between customer behaviour and banking services.
Journal: Journal of Sustainable Finance & Investment
Pages: 678-699
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2022.2030665
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# input file: TSFI_A_1883986_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bekë Kuqi
Author-X-Name-First: Bekë
Author-X-Name-Last: Kuqi
Author-Name: Elvis Elezaj
Author-X-Name-First: Elvis
Author-X-Name-Last: Elezaj
Author-Name: Bedri Millaku
Author-X-Name-First: Bedri
Author-X-Name-Last: Millaku
Author-Name: Adem Dreshaj
Author-X-Name-First: Adem
Author-X-Name-Last: Dreshaj
Author-Name: Nguyen Tan Hung
Author-X-Name-First: Nguyen Tan
Author-X-Name-Last: Hung
Title: The impact of COVID-19 (SARS-CoV-2) in tourism industry: evidence of Kosovo during Q1, Q2 and Q3 period of 2020
Abstract:
Tourism is one of the sectors most affected by the non-arrival of our compatriots from the diaspora due to COVID-19. The tourism sector is experiencing a rapid and sharp decline in demand and an increase in job losses throughout our country in Kosovo, putting many businesses at risk. The pandemic (COVID-19) is, first of all, a crisis that is affecting the lives of citizens and has caused a global economic crisis, also in our country in Kosovo. COVID-19 has very tangible impacts on the tourism sector, which is vital for many people, and businesses. The data show that the tourism sector has had a decline in revenues compared to the same period last year, precisely due to the cessation of activities. According to the data, the most affected sector is tourism and therefore the government should use incentive level policies and provide financial support for this sector. The economy and the activity of the tourism sector has been further deteriorated by the non-arrival of our compatriots from the diaspora, due to the Pandemic, thus causing great losses in the tourism industry.
Journal: Journal of Sustainable Finance & Investment
Pages: 92-103
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1883986
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1883986
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# input file: TSFI_A_1905412_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ibrahim Tawfeeq Alsedrah
Author-X-Name-First: Ibrahim Tawfeeq
Author-X-Name-Last: Alsedrah
Author-Name: Elhachemi Abdelkader Hacine Gherbi
Author-X-Name-First: Elhachemi Abdelkader
Author-X-Name-Last: Hacine Gherbi
Title: Impact of COVID-19 pandemic on total market trade value (institutional investors vs non-institutional investors)
Abstract:
This paper examines the effect of market investor types (institutional and non-institutional) on total market trade value in Saudi Arabia during the COVID-19 pandemic, including a three-month period of total containment. The research was conducted using a time series analysis method with an AutoRegressive Distributed Lag (ARDL), using weekly data collected from 7 January 2020 to 24 September 2020. The short-run result shows that both investor types net traded values and ownership holding values negatively impacts the development of Tadawul activity. Furthermore, the development of Tadawul activity showed a negative performance for the total containment period of three months. However, the long-run estimated model shows that, for both investor types, only net traded value has a positive significant impact on market activity development, whereas non-institutional ownership holding value development has a significant negative impact. Our results suggest fear is a mediator for the effect of COVID-19 on stock markets.
Journal: Journal of Sustainable Finance & Investment
Pages: 353-365
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1905412
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1905412
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# input file: TSFI_A_1964810_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Monica Singhania
Author-X-Name-First: Monica
Author-X-Name-Last: Singhania
Author-Name: Neha Saini
Author-X-Name-First: Neha
Author-X-Name-Last: Saini
Title: Institutional framework of ESG disclosures: comparative analysis of developed and developing countries
Abstract:
With enhanced global scrutiny in the backdrop of climate change, we attempt to identify the importance of the ESG framework during Covid-19 pandemic to produce guidelines for future sustainability practices. A comprehensive review of literature on ESG regulatory frameworks for sample developed and developing country was performed leading to undertaking of a cross-country comparative ESG analysis. It was revealed that a country's social and governance disclosure were driven by either voluntary or by mandatory codes that could not be a standalone factor for uplifting the country's overall ESG level. Other governance measures like sustainability reporting and integrated reporting practices need to be considered in order to uplift the ESG practice. Country-level environmental commitment was vital for both developed and emerging markets for solving information asymmetry issues and establishment of resilient business operations and reporting practices, leading to an emerging sustainable practice which needs to be adopted. Our findings offer valuable insights for regulators, institutional investors and policymakers in terms of considering ESG practices adopted by developed countries and bridging the gap from unsustainability to sustainability in countries with least developed emerging ESG countries. The study encourages the regulators to devise disclosure policies as per the Triple ‘C’ framework namely policies that are convenient, credible and comparable with the flexibility to encompass black swan events like Covid-19. The purpose of such disclosures should be to resolve the information asymmetry problem which primarily exists when regulations are non-mandatory.
Journal: Journal of Sustainable Finance & Investment
Pages: 516-559
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1964810
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# input file: TSFI_A_1962662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mousa Mohammad Abdullah Saleh
Author-X-Name-First: Mousa Mohammad Abdullah
Author-X-Name-Last: Saleh
Author-Name: Omar Jawabreh
Author-X-Name-First: Omar
Author-X-Name-Last: Jawabreh
Author-Name: Enas Fakhri Mohammad Abu-Eker
Author-X-Name-First: Enas Fakhri Mohammad
Author-X-Name-Last: Abu-Eker
Title: Factors of applying creative accounting and its impact on the quality of financial statements in Jordanian hotels, sustainable practices
Abstract:
The study investigates the factors that influence creative appliances in Jordanian hotels, as well as sustainable practices and their financial impact. This study aims to assist hotel management in understanding the reasons for creative accounting and assessing the impact it has on the integrity of hotel financial statements. 345 chartered accountants were included in the research sample (auditors). Jordanian hotels use good creative accounts; in other words, the hotel's financial accounts are approved by auditors because data and financial statements are manipulated in accordance with accounting rules and standards. This article discusses each creative accounting technique that can be used in hotels, to demonstrate the potential of each creative accounting method in hotels, and to evaluate the impact of each creative accounting method on the quality of the financial statements. The researchers hoped that this study would shed some light on Jordan's hotel industry.
Journal: Journal of Sustainable Finance & Investment
Pages: 499-515
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1962662
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1962662
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# input file: TSFI_A_1964811_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Alka Kumari
Author-X-Name-First: Alka
Author-X-Name-Last: Kumari
Author-Name: Vikas Garg
Author-X-Name-First: Vikas
Author-X-Name-Last: Garg
Title: Impact of credit on sustainable agricultural development in India
Abstract:
Agricultural credit works as a most important factor in a developing country like India, where 70% of the population resides in the rural area that is still dependant on agriculture. Sustainable development of agriculture depends upon the available natural resources, and in India, the natural resources and climate are favourable for production. This study examines the short-term and long-term effect of bank's credit on the agricultural sector growth. Using the secondary data from 1990 to 2019 the ARDL Bound test has been conducted to check the relationship between the variables. In the study we found that in the long run credit, interest rate and inflation rate have positive impact on the agricultural development, whereas in the short run credit and inflation rate have a significant impact, but the interest rate has no significant impact on the agricultural development.
Journal: Journal of Sustainable Finance & Investment
Pages: 560-571
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1964811
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# input file: TSFI_A_1990833_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Vineet Kumar
Author-X-Name-First: Vineet
Author-X-Name-Last: Kumar
Author-Name: Vijay Agrawal
Author-X-Name-First: Vijay
Author-X-Name-Last: Agrawal
Title: Augmenting commercial banks’ other income through off-balance sheet activities in relation to their determinants in the Indian banking system
Abstract:
COVID-19 has a devastating impact on the global economy, particularly on robustness and resilience of emerging and developing economies’ (EMDE’s) economic-cum-financial systems. Reinventing banking practices with strategies are indispensable for sustainable growth. EMDEs like India have distinct country-specific business models. We aim to devise a sustainable model for augmenting banks’ other income; analyzing off-balance sheet (OBS) activities in India, which may be applied in EMDEs’ efficacy. We apply least-squares dummy variables and ordinary least squares models for fixed-effect regression analysis on OBS from 1996-2019. Regulatory determinants like capital adequacy, net non-performing assets, liquidity have more significant impact on OBS than bank-specific variables like bank size or macroeconomic like GDP. OBS can generate revenue is exemplified by strong relation to other income. Findings reveal that while assessing impact of COVID-19 on-balance sheets, banks should prioritize capital and contingency liquidity planning, focusing on OBS activities to augment other income in the revival strategy.
Journal: Journal of Sustainable Finance & Investment
Pages: 634-659
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1990833
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# input file: TSFI_A_1972679_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Preeti Sharma
Author-X-Name-First: Preeti
Author-X-Name-Last: Sharma
Author-Name: Avinash K. Shrivastava
Author-X-Name-First: Avinash K.
Author-X-Name-Last: Shrivastava
Author-Name: Sachin Rohatgi
Author-X-Name-First: Sachin
Author-X-Name-Last: Rohatgi
Author-Name: Bhakti Bhushan Mishra
Author-X-Name-First: Bhakti Bhushan
Author-X-Name-Last: Mishra
Title: Impact of macroeconomic variables on sustainability indices using ARDL model
Abstract:
The present study is conducted to check the effect of the collection of macroeconomic variables on Indian sustainability indices. The independent variables adopted are Industrial Index, Wholesale Price Index, Economy Money Supply (M3), Crude Oil Prices, Real Effective Exchange Rate (REER), while dependent variables are S&P BSE GREENEX and S&P BSE CARBONEX. The study uses monthly data (converted into natural log form) from April 2012 to March 2021. Our study shows that GREENEX is linked with the index of Industrial Production, Wholesale Price Index, M3, Crude Oil Prices, and (REER) and CARBONEX is linked with the index of Industrial Production, M3, Crude Oil Prices, and REER while it is not linked with wholesale prices index. There is no association of interest rates with any of the indices taken (GREENEX and CARBONEX).
Journal: Journal of Sustainable Finance & Investment
Pages: 572-588
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1972679
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# input file: TSFI_A_1886552_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Share Aiyed M. Aldosari
Author-X-Name-First: Share Aiyed M.
Author-X-Name-Last: Aldosari
Title: The relationship between leaders’ mastery of tacit knowledge management skills and the achievement of competitive advantage at universities
Abstract:
This study aimed to reveal the academic leaders’ mastery level in emerging Saudi universities of tacit knowledge management skills, and testing the relationship between mastery levels and achieving a competitive advantage. The study is based on the analytical descriptive approach, and the questionnaire is applied as a data collection tool on a random sample numbered 330 of teaching staff at Prince Sattam Bin Abdulaziz University, the study population, totaling 2283. Findings showed that (a) the academic leaders’ mastery level of tacit knowledge management skills at university was high, (b) there was a positive relationship between mastery level and achieving a competitive advantage, and (c) there were no statistically significant differences about mastery level due to the variable effect (college type) or (academic rank) or (the nature of work), with statistically significant differences due to the variable effect (gender) in favor of males. Regarding achieving a competitive advantage, the study revealed that there were no statistically significant differences due to (college type) and (academic rank) variables, with statistically significant differences due to the variable effect (gender) in favor of males and the variable effect (the nature of work), in favor of contractors. The researcher recommended providing the current and the second class of leaders with tacit knowledge management skills and enacting a clear law to protect intellectual capital from strict restrictions by toxic, dictatorial, or bureaucratic leaderships and from the misuse of rigid systems of accountability or traditional control.
Journal: Journal of Sustainable Finance & Investment
Pages: 142-160
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1886552
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# input file: TSFI_A_1905411_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Quoc Thuan Pham
Author-X-Name-First: Quoc Thuan
Author-X-Name-Last: Pham
Author-Name: Xuan Thuy Ho
Author-X-Name-First: Xuan Thuy
Author-X-Name-Last: Ho
Author-Name: Thi Phuong Loan Nguyen
Author-X-Name-First: Thi Phuong Loan
Author-X-Name-Last: Nguyen
Author-Name: Thi Huyen Quyen Pham
Author-X-Name-First: Thi Huyen Quyen
Author-X-Name-Last: Pham
Author-Name: Anh Thanh Bui
Author-X-Name-First: Anh Thanh
Author-X-Name-Last: Bui
Title: Financial reporting quality in pandemic era: case analysis of Vietnamese enterprises
Abstract:
This study aimed to evaluate the financial reporting quality (FRQ) of Vietnamese enterprises in the pandemic era. It also examines the effect of the Big 4 audit firms in addition to non-Big 4 audits, and internal control effectiveness (ICE) on FRQ. The case study method was implemented to complete the scale of the FRQ identified by IASB in 2010 (FASB & IASB 2010) and identify the challenges encountered when preparing and representing financial reports (FRs) during the COVID-19 pandemic crisis. The survey was conducted to measure the FRQ and to examine the effect of the three factors detailed above on the FRQ. The research results indicate that all three factors significantly affect the FRQ. The results also imply the predictive value of Vietnam enterprises’ FRs in that they have been strongly affected by the COVID-19 pandemic.
Journal: Journal of Sustainable Finance & Investment
Pages: 330-352
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1905411
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# input file: TSFI_A_2030663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohammad Najjar
Author-X-Name-First: Mohammad
Author-X-Name-Last: Najjar
Author-Name: Ihab H. Alsurakji
Author-X-Name-First: Ihab H.
Author-X-Name-Last: Alsurakji
Author-Name: Amjad El-Qanni
Author-X-Name-First: Amjad
Author-X-Name-Last: El-Qanni
Author-Name: Abdulnaser I. Nour
Author-X-Name-First: Abdulnaser I.
Author-X-Name-Last: Nour
Title: The role of blockchain technology in the integration of sustainability practices across multi-tier supply networks: implications and potential complexities
Abstract:
Global supply networks encompass many inter-connected suppliers. Many of these suppliers are unpredictable and beyond the direct realm of the company, making the management of sustainability a difficult task. This research attempts to put forth a profound exploration of the integration of sustainability across complex multi-tier supply networks through the utilization of blockchain technology. The research includes a selected literature review compromising well-cited research that focuses on multi-tier supply networks and blockchain technology. The findings suggest that blockchain can enhance suppliers’ visibility. Managers will have increased transparency and traceability of their global supply networks, which will eventually reduce information asymmetry and limit opportunistic behaviors. Furthermore, the connectivity and rapid/immutable sustainable information sharing features associated with blockchain increase suppliers’ predictability and create robust sustainable supply networks. Despite the potential benefits enabled by the technology, the research highlights some vital complexities that may obstruct the adoption of the technology across multi-tier supply networks.
Journal: Journal of Sustainable Finance & Investment
Pages: 744-762
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2022.2030663
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2030663
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# input file: TSFI_A_1896989_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Manar Tayseer Hasid Batayneh
Author-X-Name-First: Manar Tayseer Hasid
Author-X-Name-Last: Batayneh
Author-Name: Rimal Bou-Bakr Saleh Al-Kouki
Author-X-Name-First: Rimal Bou-Bakr Saleh
Author-X-Name-Last: Al-Kouki
Author-Name: Hanadi Eid Albogam
Author-X-Name-First: Hanadi
Author-X-Name-Last: Eid Albogam
Title: Economic and social implications of the spread of Corona virus on the Saudi Community and the scientific and practical solutions to reduce and limit them
Abstract:
This study aimed at revealing the economic and social implications of Covid-19 on the Saudi Community and developing scientific and practical solutions to control and minimize these implications. The study sample consisted of (1238) male and female Saudi citizens and the descriptive analytical method was used to achieve the objectives of the study. The result showed that the economic and social implications of Covid-19 were highly effective (average: 3.56). Social implications came first with an average of (3.78), economic implications came next with an average of (3.35). The study also showed statistically significant differences at the level of significance of (a = 0.05) in all variables (gender, social, status, age, educational level, level of income and the nature of work). Differences are attributed to the economic and social implications of Covid-19. The study the economic and social implications of Covid-19 on the Saudi community.
Journal: Journal of Sustainable Finance & Investment
Pages: 311-329
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1896989
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1896989
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# input file: TSFI_A_1978919_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Amina Mohamed Buallay
Author-X-Name-First: Amina
Author-X-Name-Last: Mohamed Buallay
Author-Name: Meera Al Marri
Author-X-Name-First: Meera
Author-X-Name-Last: Al Marri
Author-Name: Nohade Nasrallah
Author-X-Name-First: Nohade
Author-X-Name-Last: Nasrallah
Author-Name: Allam Hamdan
Author-X-Name-First: Allam
Author-X-Name-Last: Hamdan
Author-Name: Elisabetta Barone
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Barone
Author-Name: Qasim Zureigat
Author-X-Name-First: Qasim
Author-X-Name-Last: Zureigat
Title: Sustainability reporting in banking and financial services sector: a regional analysis
Abstract:
This study investigates the relationship between the level of sustainability reporting and banks and financial services’ performance (operational, financial and market) across seven different regions (Asia, Europe, Mena, Africa, North and South America). Using data culled from 4458 observations from 60 different countries for 10 years (2008–2017), we investigate the effect of the Environment, Social and Governance score (ESG) and the three pillars on banks’ performance [Return on Assets (ROA), Return on Equity (ROE) and Tobin’s Q (TQ)]. We also control for bank-specific, macroeconomic and governance effects. The findings pinpoint a negative relationship between ESG on one hand and operational performance (ROA), financial performance (ROE) and market performance (TQ) on the other hand. From regional and pillar perspectives, the performance is differently affected following ESG, pillar and region perspectives. The novelty of this paper lies in the inclusion of different political and economic contexts. Our findings have significant theoretical implications for policy makers and academics at the international level. Banks and financial services sectors’ management lacunae manifest in terms of the weak nexus between ESG, pillars and banks and financial services’ performance.
Journal: Journal of Sustainable Finance & Investment
Pages: 776-801
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1978919
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# input file: TSFI_A_2162205_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: The Editors
Title: Correction
Journal: Journal of Sustainable Finance & Investment
Pages: i-i
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2022.2162205
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# input file: TSFI_A_1891785_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Khawla Kassed Abdo
Author-X-Name-First: Khawla Kassed
Author-X-Name-Last: Abdo
Title: The effect of external economic variables on the conventional banks and Islamic banks financial performance in Jordan: a comparative study
Abstract:
The study aimed to clarify the impact of external economic variables (inflation, growth and stock- market indicator), on the financial performance of the Conventional and Islamic banks, Also, the study makes a comparison between the Islamic and Conventional banks in Jordan. Statistically used E-views program to test the hypotheses. The study finds that there is a statistical significant effect of all the external economic variables on the performance of the Conventional banks. As for the Islamic banks, there was no statistical significant impact of inflation. The study recommends that conventional banks work to reduce dependence on interest rates in their investment activities.
Journal: Journal of Sustainable Finance & Investment
Pages: 229-247
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1891785
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# input file: TSFI_A_1985951_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Herenia Gutiérrez Ponce
Author-X-Name-First: Herenia
Author-X-Name-Last: Gutiérrez Ponce
Author-Name: Julián Chamizo González
Author-X-Name-First: Julián
Author-X-Name-Last: Chamizo González
Author-Name: Manar Al-Mohareb
Author-X-Name-First: Manar
Author-X-Name-Last: Al-Mohareb
Title: Sustainable finance in cybersecurity investment for future profitability under uncertainty
Abstract:
This paper examines the sustainable financing of R&D activities in the cybersecurity industry as a long-term investment to generate future profits and protect societies from the consequences of uncertainty as an essential part of a nation’s security strategy. Since this study utilises a dynamic panel model, the hierarchy of financing sources for R&D activities is determined by controlling for specific fixed effects. The estimator's efficiency is improved by adopting the system Generalised Method of Moments (GMM), which relies on the current interaction of explanatory variables to achieve a future factor of returns using STATA. The study sample extracted from the Orbis database consists of 51 cybersecurity leaders in the US and the UK from 2016 to 2020. The findings indicate that cybersecurity leaders use external funds to finance R&D activities to achieve high future returns. Although uncertainty increases significantly in the short run, all other else being equal, average future returns are high.
Journal: Journal of Sustainable Finance & Investment
Pages: 614-633
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1985951
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# input file: TSFI_A_2061408_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Gurinder Singh
Author-X-Name-First: Gurinder
Author-X-Name-Last: Singh
Author-Name: Shalini Aggarwal
Author-X-Name-First: Shalini
Author-X-Name-Last: Aggarwal
Author-Name: Vikas Garg
Author-X-Name-First: Vikas
Author-X-Name-Last: Garg
Author-Name: Richa Goel
Author-X-Name-First: Richa
Author-X-Name-Last: Goel
Title: From the desk of editor-in-chief
Journal: Journal of Sustainable Finance & Investment
Pages: 700-701
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2022.2061408
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2061408
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# input file: TSFI_A_2106934_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ulrich Atz
Author-X-Name-First: Ulrich
Author-X-Name-Last: Atz
Author-Name: Tracy Van Holt
Author-X-Name-First: Tracy
Author-X-Name-Last: Van Holt
Author-Name: Zongyuan Zoe Liu
Author-X-Name-First: Zongyuan Zoe
Author-X-Name-Last: Liu
Author-Name: Christopher C. Bruno
Author-X-Name-First: Christopher C.
Author-X-Name-Last: Bruno
Title: Does sustainability generate better financial performance? review, meta-analysis, and propositions
Abstract:
Sustainability in business and ESG (environmental, social, and governance) in finance have exploded in popularity among researchers and practitioners. We surveyed 1,141 primary peer-reviewed papers and 27 meta-reviews (based on ∼1,400 underlying studies) published between 2015 and 2020. Aggregate conclusions from a sample suggest that the financial performance of ESG investing has on average been indistinguishable from conventional investing (with one in three studies indicating superior performance) – in contrast with research in the wider management literature as well as industry reports. Until recently top finance journals did not publish climate change related studies, yet these studies capture the frontier of corporate risk and ESG investment strategies. We developed three propositions: first, ESG integration as a strategy seems to perform better than screening or divestment; second, ESG investing provides asymmetric benefits, especially during a social or economic crisis; and third, decarbonization strategies can potentially capture a climate risk premium.
Journal: Journal of Sustainable Finance & Investment
Pages: 802-825
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2022.2106934
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2106934
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# input file: TSFI_A_1891786_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Elvis Elezaj
Author-X-Name-First: Elvis
Author-X-Name-Last: Elezaj
Author-Name: Halit Shabani
Author-X-Name-First: Halit
Author-X-Name-Last: Shabani
Author-Name: Bekë Kuqi
Author-X-Name-First: Bekë
Author-X-Name-Last: Kuqi
Author-Name: Nguyen Tan Hung
Author-X-Name-First: Nguyen
Author-X-Name-Last: Tan Hung
Title: Managerial decision-making (DM) in Kosovo organizations based on SPACE model analysis by using AHP fuzzy method
Abstract:
The aim of the paper is to recognize the weight of evaluating the future, conclusively the process of organizational analysis and the impact that this dimension may have on our businesses. However, in this research, a series of methods and studies have been used for the application of assessing and decision making techniques for the organization, such as the SPACE model and AHP and its role in managerial decision-making, in Kosovo organizations. Deciding on the appearance of this model, in addition to clarifying our sustainable orientation and the path of the organization, it also reveals a much more important dimension that is posturing and to retain oneself mature on the industry.
Journal: Journal of Sustainable Finance & Investment
Pages: 248-263
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1891786
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1891786
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# input file: TSFI_A_2030666_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Stanislav Škapa
Author-X-Name-First: Stanislav
Author-X-Name-Last: Škapa
Author-Name: Nina Bočková
Author-X-Name-First: Nina
Author-X-Name-Last: Bočková
Author-Name: Karel Doubravský
Author-X-Name-First: Karel
Author-X-Name-Last: Doubravský
Author-Name: Mirko Dohnal
Author-X-Name-First: Mirko
Author-X-Name-Last: Dohnal
Title: Fuzzy confrontations of models of ESG investing versus non-ESG investing based on artificial intelligence algorithms
Abstract:
ESG (Environmental, social, and corporate governance) parameters are involved in investing-related decision-making. DESG (Dominantly ESG) related investing represents a complex tasks studied under severe information shortages. NESG (Non-dominantly ESG) investing either ignores ESG parameters completely or it takes it as less important. ESG investing is partially DESG and partially NESG. A very simple fuzzy reasoning algorithm is used to find out the similarity between DESG and NESG in this paper. A similarity graphs is generated. An edge represents a fuzzy similarity between two nodes / conditional statements. Each statement specifies fuzzy conditions under which some DESG/NESG tools are mutually similar or totally dissimilar. Examples of investing tools are Developed Markets, Emerging Markets Small Caps, Sustainability Index and Environmental Social Governance Index. The following five parameters of investing tools are Risk, Cost, Return, Drop, and Correlation. Low pairwise fuzzy similarities between DESG and NESG are detected.
Journal: Journal of Sustainable Finance & Investment
Pages: 763-775
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2022.2030666
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2030666
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Handle: RePEc:taf:jsustf:v:13:y:2023:i:1:p:763-775
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# input file: TSFI_A_2016361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Carlos Vargas
Author-X-Name-First: Carlos
Author-X-Name-Last: Vargas
Author-Name: Marc Chesney
Author-X-Name-First: Marc
Author-X-Name-Last: Chesney
Title: What are you waiting to invest in grid-connected residential photovoltaics in California? A real options analysis
Abstract:
The purpose of this paper is to assess the optimal choice of an investor, a typical household in California, United States, in terms of whether to invest or not, in a residential scale, grid-connected, solar photovoltaic system, aiming to obtain savings in their monthly electric expenses. If they invest, they shoulder a fixed upfront cost but also accept uncertain potential savings. If they do not invest, they forego any potential savings. To assess this irreversible decision, Real Options Analysis is deployed to assess the actual benefit for the household. This approach allows us to determine whether to trigger the investments and the optimal timing to do so. Our findings show it is optimal for our investor to invest in photovoltaics; however, some delay might be advised depending on the energy production factor of specific geographical areas and the expected useful life of the equipment. The results of this study also show that it might be optimal to delay the investment between 5.5 and 12 years in some areas, which is a drawback. Our findings also show that subsidies and other incentives do not seem to be a key driver in the above-mentioned investment decision. This study contributes to the existing literature by examining the present dynamic of residential grid-connected photovoltaic systems in the most relevant market for the United States and by including an assessment of uncertainty in both electric rates and photovoltaics prices, that accounts for seasonality, price escalation and price manipulation.
Journal: Journal of Sustainable Finance & Investment
Pages: 660-677
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.2016361
File-URL: http://hdl.handle.net/10.1080/20430795.2021.2016361
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# input file: TSFI_A_1858690_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Abdullah Mohammed Sadaa
Author-X-Name-First: Abdullah Mohammed
Author-X-Name-Last: Sadaa
Author-Name: Yuvaraj Ganesan
Author-X-Name-First: Yuvaraj
Author-X-Name-Last: Ganesan
Author-Name: Mohammed Ghanim Ahmed
Author-X-Name-First: Mohammed Ghanim
Author-X-Name-Last: Ahmed
Title: The effect of earnings quality and bank continuity: the moderating role of ownership structure and CSR
Abstract:
This study examines the empirical relationship between earnings quality (EQ) and bank continuity. Moreover, it examines the moderating role of ownership structure, and women on boards of directors as index of social performance (SP) among Iraqi listed banks in the context of social responsibility. The researchers used panel data from 12 years (2008–2019) and applied OLS to verify whether ownership structure and gender diversity modifies the relationship between EQ and bank continuity. The study found that Iraqi banks are in a state of financial instability and that the EQ is significantly low. This paper also provides evidence that managerial and concentration ownership has no effect as moderating variables on an administration's motives towards maintaining a bank's continuity and EQ. In addition, the study found that the presence of women on the board of directors plays a significant role as a moderating variable, as gender diversity in the board of directors improves the relationship between EQ and a bank's continuity..
Journal: Journal of Sustainable Finance & Investment
Pages: 366-386
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2020.1858690
File-URL: http://hdl.handle.net/10.1080/20430795.2020.1858690
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# input file: TSFI_A_1886551_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Husam Jasim Mohammed
Author-X-Name-First: Husam Jasim
Author-X-Name-Last: Mohammed
Title: The optimal project selection in portfolio management using fuzzy multi-criteria decision-making methodology
Abstract:
The main purpose of the paper is to provide and apply the concept and techniques of multi-criteria decision-making under fuzzy environment in the prioritization and selection of projects in a portfolio management. In this study, the preference weights of the criteria were identified using fuzzy AHP. Then, the weights are embraced in fuzzy TOPSIS to improve the gaps of projects (alternatives) to achieve the organization objectives as well as interactions between projects. Twenty Iraqi Oil Company projects were evaluated against five key criteria. The results showed that in fuzzy TOPSIS technique the measurement of criteria weights is important and they could adjust the ranking for other projects as well as figure out the best project to achieve the desired levels. This research as expected will serve as a helpful tool for stakeholders in improving the quality level of portfolio management projects.
Journal: Journal of Sustainable Finance & Investment
Pages: 125-141
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1886551
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1886551
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# input file: TSFI_A_1964809_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Saliha Theiri
Author-X-Name-First: Saliha
Author-X-Name-Last: Theiri
Author-Name: Bahaaeddin Alareeni
Author-X-Name-First: Bahaaeddin
Author-X-Name-Last: Alareeni
Title: Perception of the digital transformation as a strategic advantage through the Covid 19 crisis? case of Tunisian banks
Abstract:
Today, digital transformation as a worldwide phenomenon has taken a great deal in corporate strategies. The implementation of strict confinement has resulted in a quite cancelation of transactions and movements. Digital transformation, synonym to accessibility, rapidity and reliability has been widely triggered during the COVID-19 pandemic. In essence, this research explores the effect of digital transformation on the pandemic outcome through identifying how digitization embraces opportunity and innovative strategy. A research model was proposed and empirically tested with partial least squares path-modeling approach, based on the methodological survey completed with Tunisian banks’ CEO and operational service managing. The results have demonstrated the necessity of digitization as strategic planning to be deployed in both the short and long terms. It is considered a vector of innovation and sustainable development. It helps identify the essential aspects of business processes and how they should be employed to survive and thrive during crises.
Journal: Journal of Sustainable Finance & Investment
Pages: 477-498
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1964809
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1964809
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# input file: TSFI_A_1964808_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xingxing Chen
Author-X-Name-First: Xingxing
Author-X-Name-Last: Chen
Author-Name: Olaf Weber
Author-X-Name-First: Olaf
Author-X-Name-Last: Weber
Author-Name: Xianzhong Song
Author-X-Name-First: Xianzhong
Author-X-Name-Last: Song
Author-Name: Lidan Li
Author-X-Name-First: Lidan
Author-X-Name-Last: Li
Title: Do greener funds perform better? An analysis of open-end equity funds in China
Abstract:
This study analyses how equity funds react to institutional pressure related to green finance. Based on the analysis of 378 open-end equity funds in China from 2010 to 2019, we examined the environmental performance of fund holdings to measure their level of green investment. In our analyses, we distinguished between funds with positive and negative screening strategies. Our results indicate that the funds’ green investments are gradually increasing. Furthermore, we found that green investment strategies help to increase the funds’ excess return. The positive connection to financial returns, however, is only valid for funds with negative screening strategies. Finally, we found that fund investors react negatively to funds using positive screening to identify green investments. The study contributes to theoretical and practical knowledge about factors influencing equity funds’ green and financial performance.
Journal: Journal of Sustainable Finance & Investment
Pages: 387-405
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1964808
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1964808
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# input file: TSFI_A_1883985_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Syed Kaleem Ullah Shah Bukhari
Author-X-Name-First: Syed Kaleem Ullah Shah
Author-X-Name-Last: Bukhari
Author-Name: Rani Gul
Author-X-Name-First: Rani
Author-X-Name-Last: Gul
Author-Name: Tayyaba Bashir
Author-X-Name-First: Tayyaba
Author-X-Name-Last: Bashir
Author-Name: Sumaira Zakir
Author-X-Name-First: Sumaira
Author-X-Name-Last: Zakir
Author-Name: Tariq Javed
Author-X-Name-First: Tariq
Author-X-Name-Last: Javed
Title: Exploring managerial skills of Pakistan Public Universities (PPUs)’ middle managers for campus sustainability
Abstract:
Management of an institution determines its success or failure. Educational management and administration borrow the characteristics of business model with reference to the operations of higher education institutions. Managerial skills in this regard for campus sustainability are of great significance. However, there is a lack of study that comprehensively explores these skills. This study aimed at exploring the managerial skills to promote campus sustainability at Pakistan Public Universities (PPUs). The qualitative case study research design was employed to gain a deeper understanding of middle managers from PPUs. Semi-structured interviews and thematic analysis of documents were used to gather the data. Results found three types of managerial skills: technical skills, interpersonal skills and training and development. Challenges were found to create hurdles to improve these skills. Being the first qualitative study in Pakistan perspectives, the findings cannot be generalized but can be transferable to other public universities in Pakistan.
Journal: Journal of Sustainable Finance & Investment
Pages: 73-91
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1883985
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1883985
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# input file: TSFI_A_1874216_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Saud N. Alshmery
Author-X-Name-First: Saud N.
Author-X-Name-Last: Alshmery
Author-Name: Hind R. Alqirnas
Author-X-Name-First: Hind R.
Author-X-Name-Last: Alqirnas
Author-Name: Muna I. Alyuosef
Author-X-Name-First: Muna I.
Author-X-Name-Last: Alyuosef
Title: Influence of the social and economic characteristics of Saudi women on their attitudes toward empowering them in online labor market
Abstract:
The study aims to investigate the attitudes of Saudi women toward empowering them in the online labor market and study the impact of the social and economic characteristics on their attitudes toward empowering. The study adopted a survey approach, the questionnaire was distributed online to a number of private companies of the women’s sectors at Hail city. The responses in the questionnaire was 262. The study discovered that Saudi women’s have positive attitudes toward their empowerment. It was found that there is no statistically correlation between Methods of empowering women online in KSA and social characteristics. It was found that marriage is the most important social factor that contributes to encouraging women to empower in the online labor market. It was found that high-income women are the most used group to work online, as it is an ideal and effective environment for them for achievements and successes.
Journal: Journal of Sustainable Finance & Investment
Pages: 1-15
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1874216
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1874216
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# input file: TSFI_A_1883384_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Khawla Kassed Abdo
Author-X-Name-First: Khawla Kassed
Author-X-Name-Last: Abdo
Author-Name: Hanan A. M. Al-Qudah
Author-X-Name-First: Hanan A. M.
Author-X-Name-Last: Al-Qudah
Author-Name: Laith Akram Al-Qudah
Author-X-Name-First: Laith Akram
Author-X-Name-Last: Al-Qudah
Author-Name: Mohammad Zakaria al Qudah
Author-X-Name-First: Mohammad Zakaria al
Author-X-Name-Last: Qudah
Title: The effect of economic variables (workers ‘diaries abroad, bank deposits, gross domestic product, and inflation) on stock returns in the Amman Financial Market from 2005/2018
Abstract:
This study is aimed to investigate the effect of economic variables on stuck return in Amman Financial markets and reflect to the research variables. Macroeconomics factors play an important role in the performance of the stock. Investors have an intention that fluctuation and forecast are easier if the research of market variables will be identified. For the case study, the Amman Stock Exchange has been taken in the following report. The research will focus on the effect of the interest rate, inflation, and bank interest rate on the floatation of stock. All the variable plays their important role in the movement of stock. Therefore, consequently, the change will be visible in different ways of the market. For this report, a study has been made of the data from the year 2005–2018. Multiple regression models and descriptive statics tools had been used through SPSS for clarification of concepts. The methodology of the research and interpretation of the results are discussed in the following report which helps in driving conclusions. Also, the return of stock was tending to be more fluctuating with the change in every variable. The variable of macroeconomics that was taken for research was GDP, inflation, bank interest rates of deposits. it was also concluded that GDP is directly and has a strong relation with returns of stock. As for inflation, the inverse relationship had been observed.
Journal: Journal of Sustainable Finance & Investment
Pages: 59-72
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1883384
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1883384
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# input file: TSFI_A_1886549_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: M. Hilmi Özkaya
Author-X-Name-First: M.
Author-X-Name-Last: Hilmi Özkaya
Author-Name: Maeen Alhuwesh
Author-X-Name-First: Maeen
Author-X-Name-Last: Alhuwesh
Title: Effectiveness of exchange rate channel in transiting monetary policy impact to real economy: the case of Yemen
Abstract:
This study aims to investigate the effectiveness of the exchange rate channel as a monetary transmission mechanism in Yemen, using technique of the Vector Autoregression (VAR) model and its help tools, such as impulse reaction function analysis and variance decomposition analysis in 1991–2018. The results of the study were compatible with theoretical expectations for the exchange rate (EXR) impact on the net exports (NX), the real economic growth (RGDP), and the inflation rate (CPI). Consequently, the exchange rate channel plays an important role in transferring the impact of monetary policy decisions to RGDP and the CPI in Yemeni economy. Our study has shown the effectiveness of the exchange rate channel in influencing both RGDP and CPI, due to the large role that the exchange rate plays in influencing economic activity in Yemen since the Yemeni economy is highly open to other economies.
Journal: Journal of Sustainable Finance & Investment
Pages: 104-117
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1886549
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1886549
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# input file: TSFI_A_2105790_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Alexander Bassen
Author-X-Name-First: Alexander
Author-X-Name-Last: Bassen
Author-Name: Christian Fieberg
Author-X-Name-First: Christian
Author-X-Name-Last: Fieberg
Author-Name: Othar Kordsachia
Author-X-Name-First: Othar
Author-X-Name-Last: Kordsachia
Author-Name: Kerstin Lopatta
Author-X-Name-First: Kerstin
Author-X-Name-Last: Lopatta
Author-Name: Bastian Nendza
Author-X-Name-First: Bastian
Author-X-Name-Last: Nendza
Title: Index construction for sustainable development investing
Abstract:
We implement the definition for Sustainable Development Investing (SDI) developed by the Global Investors for Sustainable Development (GISD) Alliance to construct an investable global SDI-aligned equity index. To this end, we create a proprietary methodology to rate companies’ SDI contribution using the Sustainable Development Goals (SDGs) as the appropriate unit of measurement. We find that the inclusion of SDI preferences in a multi-objective portfolio yields similar risk-return characteristics as a benchmark portfolio. This article informs institutional investors and index providers about practical approaches to implement the SDI definition with recently developed commercial data solutions. In this context, we review and provide an overview of data availability for the classification of companies’ alignment to the SDGs based on their products and services.
Journal: Journal of Sustainable Finance & Investment
Pages: 702-722
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2022.2105790
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2105790
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# input file: TSFI_A_1962661_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Soumaya Ben Khelifa
Author-X-Name-First: Soumaya
Author-X-Name-Last: Ben Khelifa
Title: Governance quality, social and macro-economic conditions: implications for financial inclusion
Abstract:
This paper seeks to identify the key factors affecting financial inclusion in developed and developing countries. Considering six dimensions of financial inclusion and different indicators, several regressions have been performed to determine the key factors affecting financial inclusion. Particularly, using OLS regression model, we regress each financial inclusion indicator of each dimension on a set of variables related to social factors, macro-economic factors and institutional quality. Results suggest that institutional quality and social factors are significantly linked to financial inclusion. Our findings have an important policy implication in that institutional quality and social factors should be considered as vital drivers in enhancing the level of financial inclusion which is consistent with Sha’ban et al (2019). Particularly, governments have to implement efficient measures and increase their capacity to control corruption. Finally, our research offers findings of specific interest to identify policies to boost financial inclusion all over the world.
Journal: Journal of Sustainable Finance & Investment
Pages: 463-476
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1962661
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1962661
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# input file: TSFI_A_1894544_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nguyen Bang Nong
Author-X-Name-First: Nguyen
Author-X-Name-Last: Bang Nong
Author-Name: Van Hong Thi Ha
Author-X-Name-First: Van Hong Thi
Author-X-Name-Last: Ha
Title: Impact of Covid-19 on Airbnb: evidence from Vietnam
Abstract:
Airbnb is an accommodation service on smart apps. Airbnb was established in 2008 in the United States. In Vietnam, Airbnb appeared in 2015 with about one thousand listings. By the beginning of 2020, this number had reached about 80 thousand in the wake of the Covid-19 Pandemic. In Hanoi, the number of bookings increased from 94% in mid-January fell to 3% in mid-April. In Ho Chi Minh City, on the rise of about 105% in mid-January 2020 to 9, 6% in April. In Da Nang city, the business was the worst, rising to 143.3% in January 2020, falling to 1%, and by the end of August 2020, the rate of reservation guests will only be 3.6%. Airbnb's dire business performance is an indicator of Vietnam's tourism business, the real estate business, and many accompanying people's employment problems.
Journal: Journal of Sustainable Finance & Investment
Pages: 283-296
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1894544
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1894544
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# input file: TSFI_A_1891783_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hanan Ahmed AL Qudah
Author-X-Name-First: Hanan Ahmed AL
Author-X-Name-Last: Qudah
Title: Credit risks measurement in Islamic banks study model
Abstract:
The study aims to measure the credit risk in Islamic banks proposed model, can be applied and reliability in measuring credit risk, and forecasting of these risks in Islamic banks operating in Jordan, through the proposal of Design model for measuring credit risk in Islamic banks operating in Jordan. To identify and predict the impact of the volume of local and international Murabaha receivables on credit risks in Islamic banks in Jordan, as well as to identify and predict the impact of the volume of artisan participation receivables on credit risks in Islamic banks in Jordan, and finally to identify and predict the impact of the volume of Ijara receivables ended by ownership on credit risks in Islamic banks in Jordan.
Journal: Journal of Sustainable Finance & Investment
Pages: 210-228
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1891783
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1891783
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Handle: RePEc:taf:jsustf:v:13:y:2023:i:1:p:210-228
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# input file: TSFI_A_1945348_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Henry Penikas
Author-X-Name-First: Henry
Author-X-Name-Last: Penikas
Title: Money multiplier under Basel capital ratio regulation: implications for counter-COVID-19 stimulus
Abstract:
The COVID-19 induced the central bankers to search the most efficient stimulus measures. As a solution, they made an unprecedented step. They lifted down the reserve requirement (RR) to zero. This was done in the United States [FRS. 2020. “Federal Reserve Actions to Support the Flow of Credit to Households and Businesses.” Accessed February 10, 2021. Board of the Governors of the Federal Reserve System] and Morocco [BKAM. 2020. “Monetary Policy Report No. 55.” Accessed from Central Bank of Morocco Website]. The existing monetary theory literature suggests that the broad money supply should go to infinity as a result. Then we may expect the rapid economic recovery. However, this may not come true. The novelty of this paper is the development of the money multiplier theory. We explain why a step to set the RR at zero may boost (though slight) the cash-intensive economy (like Morocco) and may not deliver any benefit to a mostly cashless one (like the US, Canada, or the EU).
Journal: Journal of Sustainable Finance & Investment
Pages: 431-449
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1945348
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1945348
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# input file: TSFI_A_1961558_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ibrahim Nandom Yakubu
Author-X-Name-First: Ibrahim Nandom
Author-X-Name-Last: Yakubu
Author-Name: Alhassan Bunyaminu
Author-X-Name-First: Alhassan
Author-X-Name-Last: Bunyaminu
Title: Regulatory capital requirement and bank stability in Sub-Saharan Africa
Abstract:
In the wake of the global financial crisis of 2007–2009, more stringent regulatory mechanisms such as increased capital adequacy ratios have gained prominence in an effort to create a stable banking sector. The relevance of capital regulation in ensuring the soundness and stability of the financial sector is overwhelmingly supported in the literature. Hitherto, little is documented on how capital requirement influences bank stability in Africa. This study, therefore, seeks to investigate the impact of regulatory capital requirement on bank stability in Sub-Saharan Africa over the period 2000-2017. Applying the generalized method of moments (GMM) technique, our results reveal a positive significant effect of capital requirement on bank stability. However, in the presence of institutional quality, capital adequacy has an inimical effect on stability. We conclude that stringent regulatory capital standards implementation is imperative for ensuring a sound and stable banking sector in Sub-Saharan Africa.
Journal: Journal of Sustainable Finance & Investment
Pages: 450-462
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1961558
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1961558
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# input file: TSFI_A_1891782_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Atallah Al-hosban
Author-X-Name-First: Atallah
Author-X-Name-Last: Al-hosban
Author-Name: Mohammed Alsharairi
Author-X-Name-First: Mohammed
Author-X-Name-Last: Alsharairi
Author-Name: Isssa Al-Tarawneh
Author-X-Name-First: Isssa
Author-X-Name-Last: Al-Tarawneh
Title: The effect of using the target cost on reducing costs in the tourism companies in Aqaba Special Economic Zone Authority
Abstract:
This study aimed to find the effect of Target Costing (steps and Characteristics) in reducing costs in Tourism companies at Aqaba Economic Area. The Questionnaire was distributed to group of hotels in Aqaba (Auditors, Financial, and Accountants) 42 questionnaires were distributed (32) were retrieved. The most results: Management of Tourism companies in Aqaba establish depends up on the markets to design and manufacture products or services, and tourism companies in Aqaba City review the market which the company seeks to sell products or services. Most recommendations: its important to care that tourism companies in Aqaba must hire cost accountant in hotels to obtain accurate flow of cost data, and its important for hotels in general to apply new techniques of managerial accounting which reduce costs.
Journal: Journal of Sustainable Finance & Investment
Pages: 194-209
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1891782
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1891782
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# input file: TSFI_A_1929807_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: R. El Khoury
Author-X-Name-First: R.
Author-X-Name-Last: El Khoury
Author-Name: N. Nasrallah
Author-X-Name-First: N.
Author-X-Name-Last: Nasrallah
Author-Name: B. Alareeni
Author-X-Name-First: B.
Author-X-Name-Last: Alareeni
Title: ESG and financial performance of banks in the MENAT region: concavity–convexity patterns
Abstract:
This study aims to investigate the impact of Environmental, Social and Governance (ESG) on bank performance (FP) in the Middle East, North Africa and Turkey (MENAT) region. The sample consists of 46 listed banks between 2007–2019. FP is measured through accounting (Return on Assets Return on Equity) and market indicators (Tobin’s Q Stock Return ). We test the effect of ESG and its quadratic term on FP by controlling for bank-specific, macroeconomic and financial development variables. Our results support the presence of a non-linear ESG–FP relationship. ESG incremental investments remain beneficial till reaching an inflection point. Interestingly, the financial development variables are significant, while ESG pillars follow different patterns. Governance pillar has a concave relationship with accounting performance while environmental pillar has a convex relationship with the market return. The ESG–FP relationship depends on three vectors: pillars; measure of FP; and level of ESG. Banks should determine ESG turning points to rationalize their investments and contemplate efficient returns.
Journal: Journal of Sustainable Finance & Investment
Pages: 406-430
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1929807
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1929807
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# input file: TSFI_A_1891781_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mousa Mohammad Abdullah Saleh
Author-X-Name-First: Mousa Mohammad Abdullah
Author-X-Name-Last: Saleh
Author-Name: Omar A. A. Jawabreh
Author-X-Name-First: Omar A. A.
Author-X-Name-Last: Jawabreh
Author-Name: Sameer ahmad hmoud al-Amro
Author-X-Name-First: Sameer ahmad hmoud
Author-X-Name-Last: al-Amro
Author-Name: Haneen Mahmoud Ibrahim Saleh
Author-X-Name-First: Haneen Mahmoud Ibrahim
Author-X-Name-Last: Saleh
Title: Requirements for enhancing the standard of accounting education and its alignment with labor market requirements a case study hospitality and industrial sector in Jordan
Abstract:
The purpose of this paper is to address the expectations of enhancing the quality and compatibility of accounting education in Jordan with labor market requirements. To accomplish this goal, a questionnaire was circulated to a group of (100) employees. The researchers used the questionnaire to assess the views of the survey group, having studied the scholarly literature on the topic of the study, whether it was given in sources or in scientific journals and theses. This research is an exploratory, empirical study which uses the methodology of data collection and interpretation to draw conclusions. The findings indicate that the content of the study plans is firmly and statistically substantially related to labor market requirements. Either after the expertise and specialization of the teacher. The research leads to debates on accounting education issues in particular accreditation challenges and a clear regulation of the academic interaction with the practice.
Journal: Journal of Sustainable Finance & Investment
Pages: 176-193
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1891781
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1891781
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# input file: TSFI_A_1886553_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Aiman M. Abu Hamour
Author-X-Name-First: Aiman M.
Author-X-Name-Last: Abu Hamour
Author-Name: Deema Daifalleh Mohammed Massadeh
Author-X-Name-First: Deema Daifalleh Mohammed
Author-X-Name-Last: Massadeh
Author-Name: Mohamed Mahmoud Bshayreh
Author-X-Name-First: Mohamed Mahmoud
Author-X-Name-Last: Bshayreh
Title: The impact of the COSO control components on the financial performance in the Jordanian banks and the moderating effect of board independence
Abstract:
The study aims to investigate the moderating effect of the board independence on the COSO components (Control Environment, Risk Assessment, Information and Communication, Control Activities and Monitoring), and the financial performance in the Jordanian banks. This paper used 109 usable questionnaires from financial managers, internal control managers and internal Auditors and the secondary data of the Jordanian banks reports. The collected data were analyzed utilizing Statistical Package for the Social Sciences. The study shows new findings and unique contribution to the impact of COSO components on the financial performance of Jordanian banks; the results show a positive relationship between COSO’s components and financial performance (ROI, ROE). It also presented a statistically significant impact of two components (Control Activities and Control Environment) on ROI. In addition, the study showed that the association between COSO control components and the financial performance is positively moderated by board independence. This study provides a unique contribution to other studies of the impact internal control systems based on the COSO components control and their impact on the financial performance, as well as the moderator effect (board independence) on this relationship in the Jordanian banks. The results of the study support the agency’s theory in which the level of financial performance satisfactory to shareholders will reduce the agency’s problem and costs, and thus a new scientific shareholder path added to accounting literature that explains the relationships and impacts between COSO.
Journal: Journal of Sustainable Finance & Investment
Pages: 161-175
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1886553
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1886553
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# input file: TSFI_A_1978918_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Saeed Awadh Bin-Nashwan
Author-X-Name-First: Saeed Awadh
Author-X-Name-Last: Bin-Nashwan
Author-Name: Aishath Muneeza
Author-X-Name-First: Aishath
Author-X-Name-Last: Muneeza
Title: Investment decisions in digital sukuk in the time of COVID-19: do tax incentives matter?
Abstract:
Although the sukuk market has maintained remarkable growth momentum over the recent years, the optimism has been significantly moderated by the abrupt shock due to the pervasive COVID-19 pandemic. However, sukuk can be used as an effective financing option by governments to overcome a fiscal deficit and to support those adversely affected by the pandemic. Sukuk Prihatin (SP), the first-ever digital sukuk issued by the Government of Malaysia, has launched to engage citizens to contribute to the country's recovery efforts in the wake of COVID-19. Therefore, this study aims to probe the motivation that influences retail investors’ inclination to invest in such innovative sukuk. Based on an integrated model of planned behavior (TPB) and social cognitive theories (SCT) and data gathered from 279 retail investors, this research found that attitude towards SP investment (SPI), social norms, perceived control regarding SPI, sukuk features and digitization are significant determinants of investors’ willingness to invest in SP. It also revealed that tax incentives-moderated interactions of social norms, perceived control and sukuk features on SPI intention are significant.
Journal: Journal of Sustainable Finance & Investment
Pages: 589-613
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1978918
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1978918
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# input file: TSFI_A_1874217_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Amnah A. A. Alasgah
Author-X-Name-First: Amnah A. A.
Author-X-Name-Last: Alasgah
Author-Name: Eman S. I. Rizk
Author-X-Name-First: Eman S. I.
Author-X-Name-Last: Rizk
Title: Empowering Saudi women in the tourism and management sectors according to the Kingdom's 2030 vision
Abstract:
This research aims at studying the empowerment of Saudi women in the tourism sector according to the Kingdom's 2030 vision, as well as discussing the constituents and constraints of their empowerment in the tourism sector. The researchers reached a number of important results; such as the fact that the representation of Saudi women in the tourism sector is still significantly low compared to men. Recently, however, the level of empowering the Saudi women in the tourism sector has been increased by more than 90%. The city of Makkah topped the cities of the Kingdom of Saudi Arabia in terms of the excellence of women working in the tourism sector, with a high level of women empowerment. A statistically significant difference was found in the components of empowering Saudi women in the tourism sector according to the Kingdom's 2030 vision, according to the age and the educational level.
Journal: Journal of Sustainable Finance & Investment
Pages: 16-43
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1874217
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1874217
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# input file: TSFI_A_1886550_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mursal Mursal
Author-X-Name-First: Mursal
Author-X-Name-Last: Mursal
Author-Name: Mahyudin Ritonga
Author-X-Name-First: Mahyudin
Author-X-Name-Last: Ritonga
Author-Name: Fitria Sartika
Author-X-Name-First: Fitria
Author-X-Name-Last: Sartika
Author-Name: Ahmad Lahmi
Author-X-Name-First: Ahmad
Author-X-Name-Last: Lahmi
Author-Name: Talqis Nurdianto
Author-X-Name-First: Talqis
Author-X-Name-Last: Nurdianto
Author-Name: Lukis Alam
Author-X-Name-First: Lukis
Author-X-Name-Last: Alam
Title: The contribution of Amil Zakat, Infaq and Shadaqah Muhammadiyah (LAZISMU) institutions in handling the impact of Covid-19
Abstract:
Apart from the government, other institutions are needed to make active contributions to the people’s economy since the Covid-19 pandemic has made it more difficult. In Indonesia, there are large community organizations with considerable assets, such as LAZISMU. During the pandemic, Indonesians felt the active participation of Muhammadiyah and all of its charitable efforts. Therefore, this study aims to describe the contribution of LAZISMU in dealing with the impact of the pandemic. The data analyzed showed that the contribution of LAZISMU was in order to deal with the impact of the pandemic in various forms, by providing scholarships, distributing basic necessities, helping orphanages and distributing masks. This was carried out in accordance with the procedures of Lazismu and health protocol rules during the pandemic.
Journal: Journal of Sustainable Finance & Investment
Pages: 118-124
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1886550
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1886550
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# input file: TSFI_A_1891787_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thi Thao Hien Bui
Author-X-Name-First: Thi Thao Hien
Author-X-Name-Last: Bui
Author-Name: Manimekalai Jambulingam
Author-X-Name-First: Manimekalai
Author-X-Name-Last: Jambulingam
Author-Name: Muslim Amin
Author-X-Name-First: Muslim
Author-X-Name-Last: Amin
Author-Name: Nguyen Tan Hung
Author-X-Name-First: Nguyen Tan
Author-X-Name-Last: Hung
Title: Impact of COVID-19 pandemic on franchise performance from franchisee perspectives: the role of entrepreneurial orientation, market orientation and franchisor support
Abstract:
The epidemic of COVID-19, the disease triggered by the SARS-CoV-2 virus, has had major economic, political and social effects worldwide, leading to concern about the disease, especially in the franchise service industry. The purpose of this paper is to review literature on three factors: entrepreneurial orientation, market orientation, franchisor support and figure out the relationship of these three factors on franchisee performance. Based on the literature, entrepreneurial orientation, market orientation, franchisor resource has positive and significant impact to franchisee performance. Further, franchisor support holds very important role on moderating relationship between entrepreneurial orientation, market orientation and franchisee performance in this pandemic Covid-19. This paper highlight the concepts to clarify the distinctions between them and suggests the propositions between franchisee entrepreneurial orientation, market orientation, and franchisor supports to franchisee performance. Study on franchisee performance is necessary as franchisees are also employees, customers, stakeholders of the franchisors, contribute to the success of franchise system.
Journal: Journal of Sustainable Finance & Investment
Pages: 264-282
Issue: 1
Volume: 13
Year: 2023
Month: 01
X-DOI: 10.1080/20430795.2021.1891787
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1891787
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# input file: TSFI_A_1917929_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bhim Adhikari
Author-X-Name-First: Bhim
Author-X-Name-Last: Adhikari
Author-Name: Lolita Shaila Safaee Chalkasra
Author-X-Name-First: Lolita Shaila
Author-X-Name-Last: Safaee Chalkasra
Title: Mobilizing private sector investment for climate action: enhancing ambition and scaling up implementation
Abstract:
Private-sector finance has been widely seen as a step to scale up access to resources for ambitious climate action, given the limited availability of public resources. However, there is a knowledge gap about the risks, barriers, and opportunities associated with greater private investment. This paper analyses some important barriers that commonly inhibit private sector investment in climate adaptation action. The analysis draws on case studies of small and medium-sized business (SMEs), multinational companies (MNCs), B corporations and impact investors. Our analysis confirms that private sector actors are willing to invest in climate adaptation, but their investment decisions are constrained by risk profiles associated with climate adaptation projects, the lack of financially viable and bankable projects, and complete knowledge of climate risk that guide adaptation decision. A tailored approach is required to leverage private sector finance, and conducive public policy interventions will facilitate to mobilize different types of private sector actors.
Journal: Journal of Sustainable Finance & Investment
Pages: 1110-1127
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1917929
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# input file: TSFI_A_1923336_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jan De Spiegeleer
Author-X-Name-First: Jan
Author-X-Name-Last: De Spiegeleer
Author-Name: Stephan Höcht
Author-X-Name-First: Stephan
Author-X-Name-Last: Höcht
Author-Name: Daniel Jakubowski
Author-X-Name-First: Daniel
Author-X-Name-Last: Jakubowski
Author-Name: Sofie Reyners
Author-X-Name-First: Sofie
Author-X-Name-Last: Reyners
Author-Name: Wim Schoutens
Author-X-Name-First: Wim
Author-X-Name-Last: Schoutens
Title: ESG: a new dimension in portfolio allocation
Abstract:
In this paper, we examine the impact of including environmental, social and governance (ESG) criteria in the allocation of equity portfolios. We focus on the risk and return characteristics of the resulting ESG portfolios and investment strategies. Two specific measures are considered to quantify the ESG performance of a company; the ESG rating and the greenhouse gas (GHG) emission intensity. For both measures, we carry out empirical portfolio analyses with assets in either the STOXX Europe 600 or the Russell 1000 index. The ESG rating data analysis does not provide clear-cut evidence for enhanced performance of portfolios with either high or low ESG scores. We moreover illustrate that the choice of rating agency has an impact on the performance of ESG-constrained portfolios. The analysis on GHG intensities shows that portfolios with reduced emissions do not necessarily have increased risk or diminished returns.
Journal: Journal of Sustainable Finance & Investment
Pages: 827-867
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1923336
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1923336
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# input file: TSFI_A_2178603_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: The Editors
Title: Statement of Retraction
Journal: Journal of Sustainable Finance & Investment
Pages: 1128-1130
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2023.2178603
File-URL: http://hdl.handle.net/10.1080/20430795.2023.2178603
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# input file: TSFI_A_1874212_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: James Brusseau
Author-X-Name-First: James
Author-X-Name-Last: Brusseau
Title: AI human impact: toward a model for ethical investing in AI-intensive companies
Abstract:
Does AI conform to humans, or will we conform to AI? An ethical evaluation of AI-intensive companies will allow investors to knowledgeably participate in the decision. The evaluation is built from nine performance indicators that can be analyzed and scored to reflect a technology’s human-centering. The result is objective investment guidance, as well as investors empowered to act in accordance with their own values. Incorporating ethics into financial decisions is a strategy that will be recognized by participants in environmental, social, and governance investing, however, this paper argues that conventional ESG frameworks are inadequate to companies that function with AI at their core. Fully accounting for contemporary big data, predictive analytics, and machine learning requires specialized metrics customized from established AI ethics principles. With these metrics established, the larger goal is a model for humanist investing in AI-intensive companies that is intellectually robust, manageable for analysts, useful for portfolio managers, and credible for investors.
Journal: Journal of Sustainable Finance & Investment
Pages: 1030-1057
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1874212
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1874212
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# input file: TSFI_A_1879562_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Frederick J. Long
Author-X-Name-First: Frederick J.
Author-X-Name-Last: Long
Author-Name: Syren Johnstone
Author-X-Name-First: Syren
Author-X-Name-Last: Johnstone
Title: Applying ‘Deep ESG’ to Asian private equity
Abstract:
At this stage of Asia's development there is a need, and an opportunity, to establish a validation methodology that better gauges ESG implementation and sustainability aspirations in Asian private equity. Private equity, like major public market and debt investors such as Blackrock, has adopted language that suggests a proactive approach to ESG management. However, process-oriented ESG compliance presently far outstrips evidence of tangible contributions to ESG objectives and outcomes. This article describes a taxonomy of common approaches to ESG investment practices in Asian private equity and discusses their shortcomings. It then presents ‘Deep ESG’ as an alternative approach that operationalizes ESG and sustainability metrics more holistically than existing frameworks. The Deep ESG framework enables a higher level of market-led intentionality that better informs institutional investors, regulators, communities, and employees as they evaluate private equity's ‘balance sheet’ of ESG outcomes. By investing in tools for goal setting, measurement and evaluation and applying them consistently across all target and portfolio companies, private equity managers can pivot away from a defensive approach by working with stakeholders to shape constructive solutions to urgent sustainability goals.
Journal: Journal of Sustainable Finance & Investment
Pages: 943-961
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1879562
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# input file: TSFI_A_1894901_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sofia Wiklund
Author-X-Name-First: Sofia
Author-X-Name-Last: Wiklund
Title: Evaluating physical climate risk for equity funds with quantitative modelling – how exposed are sustainable funds?
Abstract:
The effects of climate change carry substantial financial consequences. Despite this, physical climate risk has only sparsely been covered in previous research, particularly in the setting of investing. Investors' tools for managing physical risk are in general rudimentary and many rely on sustainability labels. This study compares physical climate risk exposure of three groups of equity funds labelled as sustainable with the general market. Physical climate risk was evaluated by quantitative modelling, incorporating first level of upstream supply chain. The results show a lower physical risk for all three groups of sustainable funds in a five- and ten-year horizon. It cannot be concluded whether the lower risk is a result of consideration in sustainability labelling, or if lower physical risk is correlated with other sustainability qualities. Further research on physical climate risk for investors is needed, not least from a quantitative perspective and on risks related to supply chain.
Journal: Journal of Sustainable Finance & Investment
Pages: 893-918
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1894901
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# input file: TSFI_A_1879560_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Felipe Calderon
Author-X-Name-First: Felipe
Author-X-Name-Last: Calderon
Author-Name: Wilfred S. Manuela Jr.
Author-X-Name-First: Wilfred S.
Author-X-Name-Last: Manuela Jr.
Author-Name: Daisy T. Briones
Author-X-Name-First: Daisy T.
Author-X-Name-Last: Briones
Title: The impact of sustainability reporting on organizational behaviour from Western and Asian perspectives: a systematic review of literature
Abstract:
Sustainability reporting (SR) may be considered as a behavioral transformation tool for helping firms achieve sustainable performance. Using a systematic literature review and content analysis, this study investigates the differences between Western and Asian research perspectives on the transformative effect of SR. The findings suggest that Western research perspectives tend to investigate the impact of SR on social stakeholder networks more than Asian perspectives. The dominant theme of Asian SR research investigates the impact of SR on financial performance, primarily addressing economic stakeholder network interests. This suggests the need for more research on strengthening the linkages between SR, sustainable corporate behavior, and stakeholder engagement in Asia.
Journal: Journal of Sustainable Finance & Investment
Pages: 990-1008
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1879560
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Handle: RePEc:taf:jsustf:v:13:y:2023:i:2:p:990-1008
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# input file: TSFI_A_1907091_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Richard Paul Gregory
Author-X-Name-First: Richard Paul
Author-X-Name-Last: Gregory
Title: When is greenwashing an easy fix?
Abstract:
Greenwashing has long been considered a viable strategy in the literature and academic research has explored its drivers from an institutional viewpoint. This paper extends the literature by considering greenwashing from a financial management viewpoint. It is found that when firm stock volatility is low, when the weighted average cost of capital is high, when firm pricing power is strong, and when information asymmetry is high, that the financial incentives for greenwashing are strong. The potential returns to greenwashing are weakly related to the level of systemic risk of the firm. The simulation results of the model indicate that in the current era that the returns to greenwashing are quite limited without a lot of information asymmetry. The results indicate that in previous eras, there were more opportunities for greenwashing. Overall, the results suggest that for low-and average-beta firms that organizational-level drivers and individual-level psychological drivers are more important in driving greenwashing decisions. The results also show why stock-based incentives do not support corporate social responsibility.
Journal: Journal of Sustainable Finance & Investment
Pages: 919-942
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1907091
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# input file: TSFI_A_1883984_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Piers Weston
Author-X-Name-First: Piers
Author-X-Name-Last: Weston
Author-Name: Matthias Nnadi
Author-X-Name-First: Matthias
Author-X-Name-Last: Nnadi
Title: Evaluation of strategic and financial variables of corporate sustainability and ESG policies on corporate finance performance
Abstract:
Over the past few decades, there has been a sharp increase in interest by investment professionals to become more socially responsible with regards to their decision making relating to their choice of investments and overall make-up of their portfolios. This paper conducts various tests to establish a link between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP). This paper adds a strategic management element by establishing various frameworks that corporations can include in the decision-making process and includes CSR and Environmental, Social and Governance (ESG) principles when making investment decisions. The sample chosen for this paper includes the iShares MSCI KLD 400 Social exchange traded fund (ETF), iShares Core S&P 500 ETF as well as firms that follow the Principles for Responsible Investing (PRI). Overall, there is no evidence to suggest that ethical ETFs outperform conventional ETF's however PRI following firms outperform those who do not follow the guidelines.
Journal: Journal of Sustainable Finance & Investment
Pages: 1058-1074
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1883984
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# input file: TSFI_A_1904774_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hamish Kennett
Author-X-Name-First: Hamish
Author-X-Name-Last: Kennett
Author-Name: Ivan Diaz-Rainey
Author-X-Name-First: Ivan
Author-X-Name-Last: Diaz-Rainey
Author-Name: Pallab Kumar Biswas
Author-X-Name-First: Pallab Kumar
Author-X-Name-Last: Biswas
Author-Name: Duminda Kuruppuarachchi
Author-X-Name-First: Duminda
Author-X-Name-Last: Kuruppuarachchi
Title: Climate transition risk in New Zealand equities
Abstract:
We examine climate transition risk in New Zealand (NZ) equities given that NZ’s greenhouse gas (GHG) emissions are dominated by agricultural emissions and that carbon pricing has been in place since 2008. We find disclosure has grown rapidly from 2010 and that disclosure is driven by, inter alia, size and sector membership (Energy, Manufacturing and Primary Industries). However, by 2018, only around half of NZX50 companies regularly disclose emissions, though this should increase steadily as NZ will adopt mandatory disclosures from 2023 onwards on a ‘report or explain basis’. In terms of ‘hypothetical carbon liabilities’, Genesis Energy and Air New Zealand are most exposed for Scope 1 and 2 emissions, but when upstream scope 3 GHG emissions are added, Fonterra (multinational dairy firm) is most at-risk. An asset pricing analysis shows that only volatility and extreme price movements in carbon price returns are priced. Overall, the results suggest that despite there being material climate transition risks for NZX50 equities, limited disclosure and low carbon prices mean that these risks are not likely to be fully priced in stock values.
Journal: Journal of Sustainable Finance & Investment
Pages: 868-892
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1904774
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1904774
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# input file: TSFI_A_1922062_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lucie Gyönyörová
Author-X-Name-First: Lucie
Author-X-Name-Last: Gyönyörová
Author-Name: Martin Stachoň
Author-X-Name-First: Martin
Author-X-Name-Last: Stachoň
Author-Name: Daniel Stašek
Author-X-Name-First: Daniel
Author-X-Name-Last: Stašek
Title: ESG ratings: relevant information or misleading clue? Evidence from the S&P Global 1200
Abstract:
Environmental, social, and corporate governance (ESG) scores are frequently involved in investment-related decision-making, e.g. for red-flagging or to manage risks. The increasing interest in ESG data raises the question about their validity from various sources. Therefore, we explore the consistency and convergent validity of the well recognized ESG data providers. Exploratory factor analysis of S&P Global 1200 index demonstrates considerable uncertainty across extracted latent factors. Further factor analyses show that the consistency and convergent validity across ESG data significantly depend on the industry type and the country of domicile. These findings are supported by confirmatory factor analyses. Thus, the stakeholders are encouraged to incorporate the company sector and domicile aspects into their decisions. Otherwise, naive use of primary ESG scores may provide a misleading clue.
Journal: Journal of Sustainable Finance & Investment
Pages: 1075-1109
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1922062
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1922062
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# input file: TSFI_A_1907090_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Badri Zolfaghari
Author-X-Name-First: Badri
Author-X-Name-Last: Zolfaghari
Author-Name: Geraldine (Dean) Hand
Author-X-Name-First: Geraldine (Dean)
Author-X-Name-Last: Hand
Title: Impact investing and philanthropic foundations: strategies deployed when aligning fiduciary duty and social mission
Abstract:
This article investigates the factors that prevent and facilitate impact investing strategies for philanthropic foundations to align their capital with their mission. Using qualitative data from foundations in both the US and South Africa, we identify five factors (i.e. mandate and country legislation, internal skills capacities, supporting infrastructure, market capacity and strong leadership) that pertain to the international foundations located in the North, and three factors pertaining to foundations in the South (i.e. understanding of fiduciary duty, the role of financial advisors and tax legislation) which influence the deployment and uptake of impact investing strategies. Findings also suggest that the adoption of a total portfolio management approach is the most adequate strategy to align fiduciary duty and mission, and therefore resolve this ethical tension that can be present in foundations. It concludes with suggestions for future theory and practice.
Journal: Journal of Sustainable Finance & Investment
Pages: 962-989
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1907090
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# input file: TSFI_A_1874215_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gagan Deep Sharma
Author-X-Name-First: Gagan Deep
Author-X-Name-Last: Sharma
Author-Name: Gaurav Talan
Author-X-Name-First: Gaurav
Author-X-Name-Last: Talan
Author-Name: Sanchita Bansal
Author-X-Name-First: Sanchita
Author-X-Name-Last: Bansal
Author-Name: Mansi Jain
Author-X-Name-First: Mansi
Author-X-Name-Last: Jain
Title: Is there a cost for sustainable investments: evidence from dynamic conditional correlation
Abstract:
Sustainable investment avenues provide an additional return (than just financial return) in terms of contribution towards sustainability and sustainable indexes. We examine if the investors who put their money in sustainable avenues need to forego a part of their financial return. For that purpose, we compare the conditional correlation and volatility behavior of sustainable indexes and typical indexes by applying the Dynamic Conditional Correlation – GARCH model. The study is based on secondary data of Morgan Stanley Capital International (MSCI) (for conventional indexes) and Thomson Reuters indexes (as a proxy for sustainability-based indexes) using the daily closing values for a period of 5 years from January 2013 to December 2017. By concluding that the investors may switch to sustainable investment avenues without compromising on the front of return or risk, this study offers critical insight to the potential investors across developed and developing markets.
Journal: Journal of Sustainable Finance & Investment
Pages: 1009-1029
Issue: 2
Volume: 13
Year: 2023
Month: 04
X-DOI: 10.1080/20430795.2021.1874215
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1874215
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# input file: TSFI_A_1940805_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lokanath Mishra
Author-X-Name-First: Lokanath
Author-X-Name-Last: Mishra
Author-Name: Vaibhav Kaushik
Author-X-Name-First: Vaibhav
Author-X-Name-Last: Kaushik
Title: Application of blockchain in dealing with sustainability issues and challenges of financial sector
Abstract:
Blockchain network and technology is a peer-to-peer distributed system that operates in a decentralized manner. The two concepts enable to create a secure environment and allow users to exchange transactions, contracts and data thereby establishing trust amongst the users. The current study aims to investigate the issues faced in the financial sector by means of applying blockchain technology. For this, the current study provides an overview of blockchain technology and analyze the major issues and challenges faced in financial sector due to the application of the blockchain technology. It is believed that traditional system tends to be cumbersome, error-prone and slow and unsafe, in contrast, users find the blockchain as cheaper, transparent and more effective. Particularly blockchain technology provides the banking sector, security, performance, and cost reduction in many of their processes and provides quality of services to their users.
Journal: Journal of Sustainable Finance & Investment
Pages: 1318-1333
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2021.1940805
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1940805
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# input file: TSFI_A_1974242_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dirk G. Baur
Author-X-Name-First: Dirk G.
Author-X-Name-Last: Baur
Author-Name: Allan Trench
Author-X-Name-First: Allan
Author-X-Name-Last: Trench
Author-Name: Sam Ulrich
Author-X-Name-First: Sam
Author-X-Name-Last: Ulrich
Title: Green gold
Abstract:
Gold is a precious metal and an important asset class. However, mining for gold can lead to severe environmental issues. Against this backdrop, this study proposes an alternative to mitigate the negative externalities of gold mining. Instead of digging out gold for investment purposes we propose to leave it in the ground and let nature act as a natural vault and custodian legally protected by gold firms and the government. Empirically, we analyse whether portfolios of gold exploration companies with access to such ‘green’ gold also provide exposure to the world price of gold. The results demonstrate that gold mining is not necessary to give investors access to gold.
Journal: Journal of Sustainable Finance & Investment
Pages: 1200-1227
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2021.1974242
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1974242
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# input file: TSFI_A_1949890_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Elhassan Kotb Abdelrahman Radwan
Author-X-Name-First: Elhassan
Author-X-Name-Last: Kotb Abdelrahman Radwan
Author-Name: Nada Omar
Author-X-Name-First: Nada
Author-X-Name-Last: Omar
Author-Name: Khaled Hussainey
Author-X-Name-First: Khaled
Author-X-Name-Last: Hussainey
Title: Social responsibility of Islamic banks in developing countries: empirical evidence from Egypt
Abstract:
This study explores Islamic banks’ role in Social Responsibility (SR) in developing countries by focusing on the Faisal Islamic Bank of Egypt (FIBE) as a case study. The paper provides a brief overview of the concept, dimensions, and areas of SR, nature of Islamic banks, the concept of Corporate Social Responsibility (CSR) in Islamic banks, also outlines how the Islamic banks support the social enterprises with some examples of such enterprises that supported by FIBE. The analysis shows that Islamic banks in general and FIBE, in particular, play an effective role in SR and enhance the development of social enterprises. The study concluded that FIBE has allocated huge funds for SR through participating in several social initiatives and activities, besides Qard-Hasan for needy citizens and its Zakat Fund.
Journal: Journal of Sustainable Finance & Investment
Pages: 1334-1353
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2021.1949890
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1949890
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# input file: TSFI_A_1977576_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Anum Ellahi
Author-X-Name-First: Anum
Author-X-Name-Last: Ellahi
Author-Name: Hammna Jillani
Author-X-Name-First: Hammna
Author-X-Name-Last: Jillani
Author-Name: Hesan Zahid
Author-X-Name-First: Hesan
Author-X-Name-Last: Zahid
Title: Customer awareness on Green banking practices
Abstract:
Green banking is an emerging concept in Pakistan’s economy. The purpose of this paper is to identify the progress of green banking practices in the banking sector. It tries to examine the individual’s perception and response to the green practices as adopted by the banks. This research is exploratory in nature and attempts to find the association between green banking awareness and customers. Structural Equation Model (SEM) is used as a measurement model and 400 responses were obtained using convenience sampling technique. The result of the study shows that customers are receptive of the change brought on by the banks’ green initiative and are willing to adopt them. Education appears to have a significant positive impact on green banking awareness in the selected sample. The model determines that the green banking awareness is dependent on age, gender, occupation of the individual and is influenced by traits of sustainable banking practices.
Journal: Journal of Sustainable Finance & Investment
Pages: 1377-1393
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2021.1977576
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# input file: TSFI_A_1947116_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muneer M. Alshater
Author-X-Name-First: Muneer M.
Author-X-Name-Last: Alshater
Author-Name: Osama F. Atayah
Author-X-Name-First: Osama F.
Author-X-Name-Last: Atayah
Author-Name: Allam Hamdan
Author-X-Name-First: Allam
Author-X-Name-Last: Hamdan
Title: Journal of Sustainable Finance and Investment: A bibliometric analysis
Abstract:
The Journal of Sustainable Finance and Investment (JSFI) has started its publication in April 2011 and celebrates its 10th anniversary in 2021. The purpose of this study is to provide a bibliometric analysis of JSFI between 2011 and 2020. It uses the Scopus database to collect JSFI’s publications and analyse their contents. A total of 263 documents are reviewed using RStudio, VOSviewer and Microsoft Excel. This study uses bibliometric indicators to analyse publications and citations in addition to bibliographic coupling, keyword analysis and content analysis. The findings show that JSFI had a stable performance in terms of publications until 2019, with a decline in citations in the last four years. Network analysis shows that the popularity of ‘Sustainable finance’ and ‘ESG’ topics has increased, while that of ‘Corporate governance’ and ‘Socially responsible investment’ has declined. Bibliographic coupling analysis shows that the major themes published in JSFI involve four main clusters: ‘Corporate social responsibility and sustainable development’; ‘Sustainable finance and green bonds’; ‘Corporate governance and ESG’; and ‘Responsible investment and pension funds’. This study provides the readers with the first overview of JSFI publication and citation trends, in addition to thematic structure.
Journal: Journal of Sustainable Finance & Investment
Pages: 1131-1152
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2021.1947116
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1947116
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# input file: TSFI_A_1972678_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Harald Winkler
Author-X-Name-First: Harald
Author-X-Name-Last: Winkler
Author-Name: Emily Tyler
Author-X-Name-First: Emily
Author-X-Name-Last: Tyler
Author-Name: Samantha Keen
Author-X-Name-First: Samantha
Author-X-Name-Last: Keen
Author-Name: Andrew Marquard
Author-X-Name-First: Andrew
Author-X-Name-Last: Marquard
Title: Just transition transaction in South Africa: an innovative way to finance accelerated phase out of coal and fund social justice
Abstract:
A just transition transaction (JTT) in South Africa aims to address complex challenges of financing a transition away from coal, and social justice. Accelerated decarbonisation of electricity is essential for mitigation globally and in SA. However, the national utility Eskom, a state-owned enterprise, is in crisis with major operational, structural and financial problems, including legacy debt of €25bn. How and to what extent can a just transition transaction catalyse deep, structural change that is required in SA’s electricity system and promote social justice? What can we learn from the case study of a JTT about transition finance? The architecture of the JTT includes a blended finance vehicle, combining international concessionary and domestic commercial finance. Finance enables transition if it respects certain principles, promotes ambitious decarbonisation and assures compliance. A tough problem is whether such finance is provided at activity – or entity-level. We explore options for watertight remedies to ensure compliance with ambitious climate change action, though these merit further research. The innovation proposed to fund social justice is that concessional value provides significant and predictable flow of funds into a Just Transition Fund. The JTT partially addresses Eskom’s financial challenges, and thereby the strain on the country’s fiscus against a background of increasing public debt. Significant mitigation on the scale of 1–1.5 Gt CO2-eq over thirty years is achievable. The transaction may be of wider interest: Emerging economies with high coal dependence and socio-economic risk during energy transition might translate lessons from South Africa’s JTT for their own contexts.
Journal: Journal of Sustainable Finance & Investment
Pages: 1228-1251
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2021.1972678
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# input file: TSFI_A_2150510_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ibrahim Mohd-Sabrun
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Mohd-Sabrun
Author-Name: Rusnah Muhamad
Author-X-Name-First: Rusnah
Author-X-Name-Last: Muhamad
Title: Do environmentally sensitive companies engage in lesser earnings management behaviour? evidence from Malaysia
Abstract:
Past studies have examined the influence of environmental information on earnings management practices. However, these studies have reported mixed findings and failed to establish a conclusive conclusion. Therefore, rather than re-examining the relationship between environmental disclosure and earnings management, this research offers a new perspective on earnings management based on a company’s sector, specifically, environmentally sensitive (ES) and environmentally non-sensitive (EN) sectors. This study analysed ten years of data (2008–2017) on Malaysian public listed companies. It was found that ES sectors are more likely to be involved in earnings management than EN sectors. This study’s findings could initiate policy revisions leading to sustainable, ethical and responsible financial reporting practices in the future.
Journal: Journal of Sustainable Finance & Investment
Pages: 1252-1276
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2022.2150510
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2150510
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# input file: TSFI_A_1952822_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muhammad Azhar Khalil
Author-X-Name-First: Muhammad Azhar
Author-X-Name-Last: Khalil
Author-Name: Kridsda Nimmanunta
Author-X-Name-First: Kridsda
Author-X-Name-Last: Nimmanunta
Title: Conventional versus green investments: advancing innovation for better financial and environmental prospects
Abstract:
Recently, the level of climate change has substantially been rising; relatively not much is known on ‘how’ companies alter the association between their environmental performance and financial performance within the context of specific elements of innovation: conventional innovation and green innovation. Drawing upon the stakeholder theory and the natural resource-based view of the firm, this research uses firm-level Environmental, Social, and Governance (ESG) data of 462 companies across 7 Asian countries for the period 2015–2019 and employs time fixed-effects panel regression with country and industry dummies. We find that measures of innovation (i.e. conventional innovation and green innovation) are beneficial to the firm value. However, the positive effect of conventional innovation on the firm valuation builds at the expense of the environment since it poses a significant threat to environmental quality by positively contributing to carbon emission. Whilst firms’ investments in green innovation are advantageous to either type of firm performance. Further analysis shows that firms that focus on environmental practices generate significant outcomes, e.g. improved financial performance, suggesting that firms should prioritize their green investments to enhance the innovation outcomes so as to achieve superior financial value and to attract potential environmentally proactive stakeholders.
Journal: Journal of Sustainable Finance & Investment
Pages: 1153-1180
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2021.1952822
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1952822
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Handle: RePEc:taf:jsustf:v:13:y:2023:i:3:p:1153-1180
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# input file: TSFI_A_2061404_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: C. S. Divyesh Patel
Author-X-Name-First: C. S. Divyesh
Author-X-Name-Last: Patel
Author-Name: Naresh K. Patel
Author-X-Name-First: Naresh K.
Author-X-Name-Last: Patel
Title: India’s Social Stock Exchange (ISSE) – A 360° Analysis - Today’s commitment for tomorrow’s action
Abstract:
This conceptual research aims to study the core components of India’s first proposed Social Stock Exchange (SSE), its structure and regulations, including types of eligible social enterprises, investors and financial instruments, disclosures, and reporting requirements along with the global SSE to carry out an informed and nuanced comparison. The research relies primarily on secondary and descriptive in the study. The study results show that India, the world’s most populous democracy, is about to launch a SSE in 2021 which will serve as a mediator between social enterprises that need funding and investors who are willing to invest their money and by designing and providing robust solutions which transform the habit of charity into a culture of social investment. Exchange focuses more on the development of the ecosystem, emphasizing policy and regulatory advocacy where Social ends and profit motives do not contradict each other. This implies profit generation for social purposes is a key sustainability feature. SSE should be a means for the markets to serve the society not for society to serve the markets.
Journal: Journal of Sustainable Finance & Investment
Pages: 1394-1414
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2022.2061404
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2061404
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Handle: RePEc:taf:jsustf:v:13:y:2023:i:3:p:1394-1414
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# input file: TSFI_A_1964815_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Safaa Adnan AlSmadi
Author-X-Name-First: Safaa
Author-X-Name-Last: Adnan AlSmadi
Author-Name: Ahmad Alkhataybeh
Author-X-Name-First: Ahmad
Author-X-Name-Last: Alkhataybeh
Author-Name: Mohammad Ziad Shakhatreh
Author-X-Name-First: Mohammad Ziad
Author-X-Name-Last: Shakhatreh
Title: Disclosure violations: does governance matter?
Abstract:
Since 2004, the Jordanian Securities Commission (JSC) has been publishing annually a list of firms that violate disclosure requirements; however, despite these publications, the level of violations is continuing to rise. We hypothesize that ownership structure and board features can affect the level of violations of manufacturing and service firms listed on the Amman Stock Exchange (ASE). The logit regression estimates assume that managerial and foreign ownership limit violation practices, while institutional ownership has no effect. It is also concluded that the characteristics of the board are not significantly related to the level of violations, apart from the audit committee and political connections, which have significant negative and positive impacts respectively.
Journal: Journal of Sustainable Finance & Investment
Pages: 1354-1376
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2021.1964815
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1964815
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# input file: TSFI_A_1917224_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Burhan Uluyol
Author-X-Name-First: Burhan
Author-X-Name-Last: Uluyol
Title: A comprehensive empirical and theoretical literature survey of Islamic bonds (sukuk)
Abstract:
In recent years, due to their ethical and Islamic principles, sukuk have received considerable attention from different kinds of investor, such as governments, corporations, institutional investors, fund managers. In this paper, in order to examine the past research and to provide some future directions on sukuk, we have reviewed and examined five different aspects of sukuk. The five main areas of sukuk, i.e. (i) the structural and fundamental differences between conventional and Islamic bonds; (ii) empirical research into sukuk; (iii) the choice between conventional bond and sukuk issuance; (iv) Shariah and legal issues of sukuk; and (v) the pricing of sukuk, are presented systematically. From the survey, it can be seen that most research has been conducted in the area of empirical studies of sukuk, while fundamental research into sukuk is largely ignored. Recommendations and directions for future research are presented at the end of the paper.
Journal: Journal of Sustainable Finance & Investment
Pages: 1277-1299
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2021.1917224
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1917224
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# input file: TSFI_A_1929806_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jan Anton van Zanten
Author-X-Name-First: Jan Anton
Author-X-Name-Last: van Zanten
Author-Name: Bhavya Sharma
Author-X-Name-First: Bhavya
Author-X-Name-Last: Sharma
Author-Name: Malene Christensen
Author-X-Name-First: Malene
Author-X-Name-Last: Christensen
Title: Sustainability integration for sovereign debt investors: engaging with countries on the SDGs
Abstract:
Investors recently adopted a novel approach to sustainable investing: engaging with countries to advance sustainable development. But engaging with sovereign entities on sustainability challenges, like the Sustainable Development Goals (SDGs), is complex. To guide sovereign debt investors in operationalizing this new sustainable investing strategy, this methodology and policy paper creates a framework that navigates the sovereign engagement process. The framework answers three questions: (i) who to engage with; (ii) what to engage on; and (iii) how to engage. First, countries are prioritized based on the investor's investment exposure and the country's progress on the SDGs. Second, using public data, SDGs and sub-targets are identified that face slow progress, thus being priorities to engage on. Third, a detailed roadmap is provided that offers a systematic approach to engaging with the identified country on selected SDG(s). This sovereign SDG Engagement Framework aims to help investors and countries achieve their shared sustainability objectives.
Journal: Journal of Sustainable Finance & Investment
Pages: 1300-1317
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2021.1929806
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1929806
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Handle: RePEc:taf:jsustf:v:13:y:2023:i:3:p:1300-1317
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# input file: TSFI_A_1929805_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: John Francis Diaz
Author-X-Name-First: John Francis
Author-X-Name-Last: Diaz
Author-Name: Thanh Tung Nguyen
Author-X-Name-First: Thanh Tung
Author-X-Name-Last: Nguyen
Title: Application of grey relational analysis and artificial neural networks on corporate social responsibility (CSR) indices
Abstract:
This research examines return predictability based on minimized forecast errors of CSR Indices through the grey relational analysis (GRA) and three types of artificial neural networks (ANN) model, namely: back-propagation perceptron (BPN); recurrent neural network (RNN); and radial basis function neural network (RBFNN), to capture non-linear characteristics of CSR indices for better forecasting accuracy. The study finds that the BPN model has the lowest forecast error, outperforming the RNN and RBFNN models. The model is also consistently better in using the 33% testing data. On the other hand, both the RNN and the RBFNN models preferred the 50% testing data. Based on the GRA rankings, the US Dollar Index and the S&P 500 index are the 1st and 2nd ranking variable, respectively. For the BPN and RNN models, the study experienced the lowest mean absolute error and root mean square errors when using the All Variables group.
Journal: Journal of Sustainable Finance & Investment
Pages: 1181-1199
Issue: 3
Volume: 13
Year: 2023
Month: 07
X-DOI: 10.1080/20430795.2021.1929805
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1929805
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# input file: TSFI_A_2147778_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Peter Løchte Jørgensen
Author-X-Name-First: Peter Løchte
Author-X-Name-Last: Jørgensen
Author-Name: Mathias Danielsen Plovst
Author-X-Name-First: Mathias Danielsen
Author-X-Name-Last: Plovst
Title: The cost of insuring against underperformance of ESG screened index funds
Abstract:
In recent years, investors have shown significant interest in responsible investment products, including sustainable and ESG screened index funds. A natural concern for prospective investors in such funds is that a sustainable fund might underperform its classical unscreened counterpart. This paper argues that this underperformance risk can be analyzed by way of an option to exchange one asset for another, and we derive a simple formula that quantifies the fair annual insurance premium for covering this risk. Only a single parameter is needed to apply the formula. This parameter – a relative index volatility – is readily estimated from market data. Our empirical work utilizes data from BlackRock's ETF (iShares) universe to estimate the cost of insuring against underperformance risk of some common ESG screened funds. We find that the fair cost of underperformance insurance typically corresponds to sacrificing in advance between 0.5% and 3.0% of the annual return.
Journal: Journal of Sustainable Finance & Investment
Pages: 1534-1553
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2022.2147778
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2147778
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# input file: TSFI_A_1922063_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mashiyat Tasnia
Author-X-Name-First: Mashiyat
Author-X-Name-Last: Tasnia
Author-Name: Syed Musa Syed Jafaar Alhabshi
Author-X-Name-First: Syed Musa
Author-X-Name-Last: Syed Jafaar Alhabshi
Author-Name: Romzie Rosman
Author-X-Name-First: Romzie
Author-X-Name-Last: Rosman
Title: Corporate social responsibility and Islamic and conventional banks performance: a systematic review and future research agenda
Abstract:
This study conducts a systematic literature review on corporate social responsibility (CSR) disclosure and Islamic and conventional banks’ financial performance. Several studies show a relation between CSR disclosure and bank performance. This research critically reviews the theoretical perspectives, impacts, issues and suggests future research based on the reviewed articles. This study uses a systematic review method to analyse 34 articles published between 1994 and 2020. The articles are published in 28 different journals, and notable journals include the Journal of Banking and Finance, Journal of Business Ethics and Review of Quantitative Finance and Accounting. This study also highlighted the issues, gap of CSR indicators, performance evaluation of conventional and Islamic banks and theoretical underpinnings. The findings of the systematic review show that the majority of the countries still follow voluntary CSR disclosure. Besides, studies emphasizing CSR and Islamic banks are limited. The theoretical perspective of Islamic banks CSR is required to develop based on Islamic principle. Lastly, this study highlighted 25 future research questions based on the review of prior literature. Future research questions will help researchers fill the existing research gap and contribute to CSR research in banking.
Journal: Journal of Sustainable Finance & Investment
Pages: 1711-1731
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2021.1922063
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1922063
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# input file: TSFI_A_1972789_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: David Blitz
Author-X-Name-First: David
Author-X-Name-Last: Blitz
Author-Name: Laurens Swinkels
Author-X-Name-First: Laurens
Author-X-Name-Last: Swinkels
Title: Does excluding sin stocks cost performance?
Abstract:
We examine the impact of excluding sin stocks on expected portfolio risk and return. Exclusions involve risk relative to the market and peers. We show how this tracking error can be translated into an equivalent loss in expected return, which is negligible at low tracking error levels, but not at higher levels. However, even modest ex ante tracking error levels may lead to sizable compoundedunderperformance ex post. Taking an asset pricing perspective we find that popular exclusions typically go against rewarded factors such as value, profitability, and low risk, which is harmful for expected portfolio returns. Theoretically sin itself may also be a priced factor, but this is not yet supported by the empirical evidence. Tracking error may be minimized and expected portfolio return restored by filling the gap left by excluding sin stocks with non-sin stocks that offer the best hedging properties and similar or better factor exposures.
Journal: Journal of Sustainable Finance & Investment
Pages: 1693-1710
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2021.1972789
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1972789
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# input file: TSFI_A_2226791_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Daniel Ofori-Sasu
Author-X-Name-First: Daniel
Author-X-Name-Last: Ofori-Sasu
Author-Name: George Nana Agyekum Donkor
Author-X-Name-First: George Nana
Author-X-Name-Last: Agyekum Donkor
Author-Name: Joshua Yindenaba Abor
Author-X-Name-First: Joshua Yindenaba
Author-X-Name-Last: Abor
Title: Do sustainability ethics explain the impact of country-level corporate governance on financial stability in developing economies?
Abstract:
The study presents an empirical evidence on how sustainability ethics affect the relationship between country-level corporate governance and financial stability in developing countries. Employing the dynamic system Generalized Method of Moments on a panel dataset of 137 developing countries over the period, 2006–2019, the study found that the positive effect of country-level corporate governance framework on financial stability is not instantaneous. We find that internal and external corporate governance frameworks have a strong positive synergistic effect on financial stability. We confirm that corporate governance measures substitute sustainability ethics to yield a desirable outcome of financial stability. Finally, the study finds evidence to support that sustainability ethics reduce the negative impact of country-level corporate governance on financial stability. The study recommends that the build-up of quality sustainability ethics can help tame the reductive effect of the country-level corporate governance framework on financial stability in developing countries.
Journal: Journal of Sustainable Finance & Investment
Pages: 1415-1450
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2023.2226791
File-URL: http://hdl.handle.net/10.1080/20430795.2023.2226791
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# input file: TSFI_A_2148816_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Syren Johnstone
Author-X-Name-First: Syren
Author-X-Name-Last: Johnstone
Author-Name: Frederick J. Long
Author-X-Name-First: Frederick J.
Author-X-Name-Last: Long
Author-Name: Abdullah Bin Azhar
Author-X-Name-First: Abdullah
Author-X-Name-Last: Bin Azhar
Title: Progress and notions of progress in sustainable finance
Abstract:
The sustainable finance industry has boomed in the face of uncertainties ranging from its justification as a viable financial product to its impact in terms of sustainability outcomes. This article seeks to characterize the conditions of the present phase and to provide insights on its present direction of travel and how future progress might best occur through two lenses. First, it reviews elements of progress in sustainable finance over the past half-century as characterized by interactions between three primary factors. Second, it presents a study of recent green bond issuances that examines the strength of the connection between sustainable finance and sustainability objectives. Analysis suggests markets do not demand rigorous design standards or accountability and are focussed on product sector growth over sustainability outcomes. Classification of finance as sustainable often lacks appropriate validation from independent due diligence and verification, post-investment assessment of outcomes, and an oversight regime assuring information integrity. The notion that allocating capital to sustainability-labelled financial products contributes to desired outcomes may be an illusion that is distracting from, and so delaying, a more demanding approach to directionally positive capital allocation. Lessons for newer sustainability linked products are considered. Suggested reforms require firmer public governance oversight regulation if acts undertaken in the debt capital markets are to meaningfully contribute to urgent sustainability challenges.
Journal: Journal of Sustainable Finance & Investment
Pages: 1554-1576
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2022.2148816
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2148816
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# input file: TSFI_A_1925522_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Toyo Kawabata
Author-X-Name-First: Toyo
Author-X-Name-Last: Kawabata
Title: Climate finance governance through transnational networks
Abstract:
Climate finance can be characterized by insufficiently firm goal setting and by a highly fragmented governance architecture composed of loosely coordinated institutions. Transnational networks can fill this governance gap to steer climate finance in such a situation. This paper examines 63 climate finance networks, including public, private, and hybrid ones, to analyse networks’ functions and determine when they emerged and how they are institutionalized. Most of the networks arose recently when bottom-up efforts began to be widely adopted as a way to mainstream finance combating climate change. In contrast to public networks, private and hybrid networks more frequently display firmly defined forms of institutionalization, such as requirements for members to pay a fee and carry out compulsory actions. In addition, private and hybrid networks tend to take on the governance functions of target setting and rule making more than public networks.
Journal: Journal of Sustainable Finance & Investment
Pages: 1624-1643
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2021.1925522
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1925522
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# input file: TSFI_A_1962663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abiola Babajide
Author-X-Name-First: Abiola
Author-X-Name-Last: Babajide
Author-Name: Evans Osabuohien
Author-X-Name-First: Evans
Author-X-Name-Last: Osabuohien
Author-Name: Patience Tunji-Olayeni
Author-X-Name-First: Patience
Author-X-Name-Last: Tunji-Olayeni
Author-Name: Hezekiah Falola
Author-X-Name-First: Hezekiah
Author-X-Name-Last: Falola
Author-Name: Lanre Amodu
Author-X-Name-First: Lanre
Author-X-Name-Last: Amodu
Author-Name: Felicia Olokoyo
Author-X-Name-First: Felicia
Author-X-Name-Last: Olokoyo
Author-Name: Folashade Adegboye
Author-X-Name-First: Folashade
Author-X-Name-Last: Adegboye
Author-Name: Benjamin Ehikioya
Author-X-Name-First: Benjamin
Author-X-Name-Last: Ehikioya
Title: Financial literacy, financial capabilities, and sustainable business model practice among small business owners in Nigeria
Abstract:
The study investigates how financial literacy and financial capabilities influence small firms’ sustainability in Lagos and Ogun States, Nigeria. It employs a survey research design to collect data from 300 small business owners across the two States. Data collected were analysed using Structural Equation Modelling (SEM) technique. The study shows that environmental sustainability, financial sustainability and social responsibility are significant determinants of small firms’ sustainability in Nigeria. Financial literacy and financial capabilities practices also have a significant positive impact on firm sustainability. However, the use of savings product shows a significant adverse effect on firms’ sustainability. The findings imply that financial literacy knowledge and practice in small business operations enhance firms’ sustainability. The study recommends that small firms should incorporate sustainability models into their business operations and improve their financial knowledge to maintain sustainability. Small business owners should also invest their savings in an appropriate investment product that suits their risk tolerance.
Journal: Journal of Sustainable Finance & Investment
Pages: 1670-1692
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2021.1962663
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1962663
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# input file: TSFI_A_2138695_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ali Amin
Author-X-Name-First: Ali
Author-X-Name-Last: Amin
Author-Name: Rizwan Ali
Author-X-Name-First: Rizwan
Author-X-Name-Last: Ali
Author-Name: Ramiz ur Rehman
Author-X-Name-First: Ramiz
Author-X-Name-Last: ur Rehman
Author-Name: Ahmed A. Elamer
Author-X-Name-First: Ahmed A.
Author-X-Name-Last: Elamer
Title: Gender diversity in the board room and sustainable growth rate: the moderating role of family ownership
Abstract:
This study examines the impact of gender diversity on sustainability growth, and moderating role of family ownership in an emerging economy, Pakistan. We employed 3730 firm-year observations, comprising of 307 non-financial firms listed on Pakistan Stock Exchange, over a period 2008–2020. Using framework of agency theory, resource dependence theory and social identity theory, we report that gender diversity results in higher sustainable growth in our sample firms. Further, our results indicate that due to strong identification of family owners with their firms, their presence positively moderates this relationship. Overall, we report that despite of a weak corporate governance mechanism, the presence of female directors and family owners results in higher firm growth and low agency conflicts, which serve as positive signals for the investors. Our study provides empirical support to mandatory appointment of female directors on boards and urge the policymakers to focus on capacity building of female workforce.
Journal: Journal of Sustainable Finance & Investment
Pages: 1577-1599
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2022.2138695
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2138695
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# input file: TSFI_A_2030664_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alida Monaco
Author-X-Name-First: Alida
Author-X-Name-Last: Monaco
Title: Divestment and greenhouse gas emissions: an event-study analysis of university fossil fuel divestment announcements
Abstract:
An event-study analysis of U.S. university fossil fuel divestment announcements on public fossil fuel companies’ abnormal returns (AR) is used to estimate divestment’s impact on fossil fuel companies’ greenhouse gas (GHG) emissions. These ARs could affect the companies’ capital development, and subsequent GHG emissions. The event-study is paired with a probit regression analysis of annual fossil fuel companies’ Securities and Exchange Commission (SEC) filings, to ascertain whether divestment is viewed as a material risk to capital expansion. This analysis finds a statistically significant negative average AR for divestment announcements on event day negative one and a statistically insignificant three-day cumulative average AR. Furthermore, this study finds that a 1% decrease in the average or cumulative average AR is associated with a statistically significant increase in the probability that firms disclose divestment. Therefore, while the overall change in GHG emissions is still ambiguous, there may be evidence for divestment’s efficacy.
Journal: Journal of Sustainable Finance & Investment
Pages: 1451-1479
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2022.2030664
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2030664
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# input file: TSFI_A_1939644_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ahmed Kouki
Author-X-Name-First: Ahmed
Author-X-Name-Last: Kouki
Title: Does gender diversity moderate the link between CEO dominance and CSR engagement? A two-step system GMM analysis of UK FTSE 100 companies
Abstract:
This paper aims to examine how chief executive officer (CEO) dominance is associated with a firm’s corporate social responsibility (CSR) engagement, and whether the board gender diversity moderates this relationship. We use a two-step system generalized method of moments (GMM) to analyze this relationship in a sample of 700 firm-year observations from FTSE 100 listed companies covering the period from 2008 to 2017. This study shows that CEO dominance is negatively associated with CSR engagement, and that the board gender diversity is positively moderated this relationship. Our study finds evidence supporting both the critical mass theory and the upper echelons theory, and suggests that a high proportion of female in the board of directors may reduce the CEO dominance, as a key player in the top management team, and increase the CSR engagement. These results are robust to alternative econometric specifications and variable definitions. This study differs from previous studies in that we introduce the board gender diversity as a moderator of the relationship between CEO dominance and CSR engagement in the UK context.
Journal: Journal of Sustainable Finance & Investment
Pages: 1644-1669
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2021.1939644
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1939644
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# input file: TSFI_A_1937916_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Andreas Dimmelmeier
Author-X-Name-First: Andreas
Author-X-Name-Last: Dimmelmeier
Title: Sustainable finance as a contested concept: tracing the evolution of five frames between 1998 and 2018
Abstract:
Sustainable finance has received increasing attention over the last years. Nonetheless, the meaning of the term remains ambiguous. This article approaches this ambiguity by understanding sustainable finance as a contested concept, whose meaning has been subject to varying interpretations. To map these interpretations, the article offers an inductive analysis of the network of actors that concern themselves with sustainable finance. Actors’ competing interpretations of sustainable finance can be conceptualised as frames. Using network analysis and interviews I identify five frames that are present in three periods between 1998 and 2018. Distinct communities advance a Socially Responsible Investment frame, a risks and opportunities frame, a climate finance frame, a critical frame and an integrated frame. Describing the emergence of these frames, their position in the network and their relations to each other can add to our understanding of sustainable finance as it complements existing authoritative classifications and histories of the topic.
Journal: Journal of Sustainable Finance & Investment
Pages: 1600-1623
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2021.1937916
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1937916
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# input file: TSFI_A_2226792_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nadine Strauß
Author-X-Name-First: Nadine
Author-X-Name-Last: Strauß
Author-Name: Jonathan Krakow
Author-X-Name-First: Jonathan
Author-X-Name-Last: Krakow
Author-Name: Marc Chesney
Author-X-Name-First: Marc
Author-X-Name-Last: Chesney
Title: It’s the news, stupid! The relationship between news attention, literacy, trust, greenwashing perceptions, and sustainable finance investment in Switzerland
Abstract:
Although sustainable finance (SF) has become a leading trend in the financial industry, little is known about how attention to news on SF, trust in the industry, and recent accusations of greenwashing affect the likelihood to invest in SF products. Based on a survey of a representative sample of Swiss citizens, we find that more attention to news about SF and trust in SF are positively related to the likelihood of investing in SF, whereas greenwashing perceptions are negatively related. Furthermore, attention to SF and economic news are positive predictors of sustainable finance literacy (SFL), whereas attention to SF news is negatively associated with greenwashing perception of SF. Collectively, these findings imply that engaging citizens with SF investments, particularly information seeking on SF news and trust in SF rather than SFL, need to be fostered. The Implications of the communication practices of the SF industry and policy implications are discussed.
Journal: Journal of Sustainable Finance & Investment
Pages: 1480-1505
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2023.2226792
File-URL: http://hdl.handle.net/10.1080/20430795.2023.2226792
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# input file: TSFI_A_2150511_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abdulaziz Abdulmohsen Alfalih
Author-X-Name-First: Abdulaziz Abdulmohsen
Author-X-Name-Last: Alfalih
Title: ESG disclosure practices and financial performance: a general and sector analysis of SP-500 non-financial companies and the moderating effect of economic conditions
Abstract:
This paper investigates the linear and non-linear impact of CSR initiatives, disaggregated into three sets of dimensions; environment, social, and governance (ESG), and their interaction effects with economic growth on short and long-term financial performance across SP-500 non-financial companies, and further separated into manufacturing and service sectors in the USA. We estimated a dynamic panel data model, using the System Generalized Method of Moments (SYS-GMM) technique on a final sample of 281 companies and a total of 2,829 observations from 2010 to 2019. The result showed that social and governance dimensions of ESG influence companies’ financial performance across the two measures of a firm's financial performance (ROA and Tobin's Q), while environmental dimension is significant with the Tobin's Q measure. The overall result indicated that ESG disclosure practices significantly impact corporate financial performance both directly and indirectly. In addition, our findings reported that economic conditions positively moderate the effects of different ESG disclosure practices on financial performance. The results found provide firm-level decision-makers with insight into the nature of the financial implications exerted by ESG disclosure and the role that economic conditions play in determining the magnitude of these effects. Finally, the industry/sector results indicate that the service sector is also very sensitive to environmental information disclosure therefore, managers in this sector should pay attention to environmental issues and disclosure as air and chemical pollution may not be all as it relates to the environment. The general interpretation and key conclusion are that ESG information disclosure does enhance corporate financial performance in the SP-500 index, in times of both normality and financial/socioeconomic crisis, which has significant meaning for investors, company management, policy makers, and industry regulators.
Journal: Journal of Sustainable Finance & Investment
Pages: 1506-1533
Issue: 4
Volume: 13
Year: 2023
Month: 10
X-DOI: 10.1080/20430795.2022.2150511
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2150511
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# input file: TSFI_A_1944036_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Asma Salman
Author-X-Name-First: Asma
Author-X-Name-Last: Salman
Author-Name: Qaisar Ali
Author-X-Name-First: Qaisar
Author-X-Name-Last: Ali
Title: Covid-19 and its impact on the stock market in GCC
Abstract:
Although there is a common view that the impact of Covid-19 should be similar among stock markets globally, empirical examinations of this issue are lacking. This study investigates the impacts of Covid-19 on the stock markets of countries in Gulf Cooperation Council (GCC) between September 2019 to July 2020. The findings of conventional t-test and non-parametric Mann-Whitney tests suggest that Covid-19 had a negative short-term impact on stock markets in GCC. This study also found that the stock markets of GCC countries are comparatively less impacted as compared to the effects suffered by the global stock markets. Lastly, the findings have confirmed the bidirectional spill over effect on GCC stock markets due to movements in Chinese stock market. The findings have potentially contributed to the ongoing research on Covid-19 impacts on global stock markets and provides a reference to assess the future trends in global stock market once pandemic subsides.
Journal: Journal of Sustainable Finance & Investment
Pages: 220-236
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2021.1944036
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1944036
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# input file: TSFI_A_1929804_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Yevheniia Antoniuk
Author-X-Name-First: Yevheniia
Author-X-Name-Last: Antoniuk
Author-Name: Thomas Leirvik
Author-X-Name-First: Thomas
Author-X-Name-Last: Leirvik
Title: Climate change events and stock market returns
Abstract:
Using an event study methodology, we investigate how unexpected political events affect climate-sensitive sectors. We find that events related to climate change policy have significantly impacted returns. The clean energy sector benefitted from the Paris Agreement, Climategate, and Fukushima since these events increased climate change awareness and favor toward policies related to reducing the impact of climate change. For the utilities, energy-intensive, and transport sectors, these events imply increased transition-related political and market risks, which should be compensated. Events weakening climate change policy are associated with positive abnormal returns for the fossil energy sector. We further find that stock market investors are quick to adapt to new information related to climate change. Policymakers should be aware of such events' impact on the stock market because the investors are likely to price in both climate risk and expectation about sectors' growth.
Journal: Journal of Sustainable Finance & Investment
Pages: 42-67
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2021.1929804
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1929804
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# input file: TSFI_A_2069079_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Richard Paul Gregory
Author-X-Name-First: Richard Paul
Author-X-Name-Last: Gregory
Title: The influence of firm size on ESG score controlling for ratings agency and industrial sector
Abstract:
The influence of firm size on environmental, social and governance (ESG) ratings is examined controlling for ratings agency and industrial sector. While a uniform positive relationship is found between firm size and ESG over ratings agencies, its strength varies by agency, calling into question the explanation of organizational legitimacy. Controlling for industrial sector and ratings agency, it is found that for many combinations that there is no significant relationship between firm size and ESG rating. Further, comparison of OLS and Quantile regression estimates shows that the effect of size on ESG ratings is driven in part by outliers.
Journal: Journal of Sustainable Finance & Investment
Pages: 86-99
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2022.2069079
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2069079
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# input file: TSFI_A_1949198_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ahmed Hassanein
Author-X-Name-First: Ahmed
Author-X-Name-Last: Hassanein
Author-Name: Mohamed M. Mostafa
Author-X-Name-First: Mohamed M.
Author-X-Name-Last: Mostafa
Author-Name: Kameleddine B. Benameur
Author-X-Name-First: Kameleddine B.
Author-X-Name-Last: Benameur
Author-Name: Jamal A. Al-Khasawneh
Author-X-Name-First: Jamal A.
Author-X-Name-Last: Al-Khasawneh
Title: How do big markets react to investors’ sentiments on firm tweets?
Abstract:
Social media actors can disseminate their views about a firm, creating potential consequences for the firm. This study thus aims to explore the reaction of a firm stock market in response to the sentiments of investors on a firm's financial tweets. It focuses on the investors’ sentiments of the world's largest 100 firms’ tweets. The Naïve Bayesian classification method is used to classify sentiments of tweets into their positive and negative tones. The cumulative abnormal return and the buy-and-hold return are used as proxies for the market reactions. The study finds that positive (negative) Twitter sentiments are likely to affect positively (negatively) the market cumulative abnormal return and its buy-and-hold return. This effect is likely to hold for a shorter period and diminishes over a longer time. Besides, this effect is more associated with negative sentiments than positive ones. Further, the analysis indicates that the effect of positive (negative) sentiments is more observable in common (coded) law countries. The results suggest that Twitter sentiments carry information contents indicative of the stock market, asserting the substantial role of information on social media. The results call for establishing a direct link between social network platforms and stock markets to mitigate the panic diffusion in the market that may arise from sentiments of investors.
Journal: Journal of Sustainable Finance & Investment
Pages: 1-23
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2021.1949198
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1949198
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# input file: TSFI_A_2006128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Van Cuong Dang
Author-X-Name-First: Van Cuong
Author-X-Name-Last: Dang
Author-Name: Quang Khai Nguyen
Author-X-Name-First: Quang Khai
Author-X-Name-Last: Nguyen
Title: Internal corporate governance and stock price crash risk: evidence from Vietnam
Abstract:
This paper investigates the role of internal corporate governance and external audit in preventing future stock price crash risk. By using a sample of 655 non-financial listed firms in the Hanoi and Ho Chi Minh City stock exchange in Vietnam for the period 2010–2019, we find that internal corporate governance is significantly related to future stock price crash risk. Specifically, we find that strong boards are positively associated with the future stock price crash risk. However, the relationship between the effectiveness of audit committees and crash risk is negative. These results indicate that appropriate internal corporate governance can prevent stock price crash risk. In addition, this study provides evidence that an external audit quality enhances the audit committee’s effectiveness in preventing crash risk. The results provide some important implications for portfolio investment and risk management.
Journal: Journal of Sustainable Finance & Investment
Pages: 24-41
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2021.2006128
File-URL: http://hdl.handle.net/10.1080/20430795.2021.2006128
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# input file: TSFI_A_2040943_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Gregor Vulturius
Author-X-Name-First: Gregor
Author-X-Name-Last: Vulturius
Author-Name: Aaron Maltais
Author-X-Name-First: Aaron
Author-X-Name-Last: Maltais
Author-Name: Kristina Forsbacka
Author-X-Name-First: Kristina
Author-X-Name-Last: Forsbacka
Title: Sustainability-linked bonds – their potential to promote issuers’ transition to net-zero emissions and future research directions
Abstract:
Sustainability-linked bonds (SLBs) promise to complement the use-of-proceed model of green bonds by tying general purpose debt finance to issuers’ sustainability performance against predefined targets. In this commentary, we highlight that the potential of SLBs to promote issuers’ climate transitions crucially depends on a common understanding of eligible economic activities and material performance indicators, the use of science-based targets as best practice, the ability of borrowers to dispel concerns about greenwashing risk, and bond characteristics that set meaningful incentives for issuers to improve their carbon performance. Future research should investigate the climate-related additionality of SLBs, assess if bond characteristics and changes in capital costs support issuers in meeting or even increasing their climate targets and deter unsustainable investments, and better understand the challenges and opportunities for the SLB market to bring about system-level innovation to the financial system.
Journal: Journal of Sustainable Finance & Investment
Pages: 116-127
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2022.2040943
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2040943
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# input file: TSFI_A_2012117_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Abdullah A. Aljughaiman
Author-X-Name-First: Abdullah A.
Author-X-Name-Last: Aljughaiman
Author-Name: Ngan Duong Cao
Author-X-Name-First: Ngan Duong
Author-X-Name-Last: Cao
Author-Name: Mohammed S. Albarrak
Author-X-Name-First: Mohammed S.
Author-X-Name-Last: Albarrak
Title: The impact of greenhouse gas emission on corporate’s tail risk
Abstract:
To ensure firm’s survival through impermanent market turbulences, corporations need to secure investors’ kindness and empathy to adjust their stock prices. Being environmentally responsible seems to be an appealing quality for that purpose. Our research aims to explore the association between firm greenhouse gas (GHG) emission and its downside tail risk, using panel data comprising the FTSE350 firms during the 2008–2018 period. We found that firms that emit more GHG are likely to be harshly penalized by the shareholders through the higher likelihood of extreme negative stock returns, i.e. tail risk. Intriguingly, the association tends to be evidenced after the Paris Agreement 2015 and for firms operating in industries with high emission intensity. The research provides implications for firms to focus on enhancing their environmental performances for higher market trust, rewards, and generosity, especially during their financial downturns or negative market events.
Journal: Journal of Sustainable Finance & Investment
Pages: 68-85
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2021.2012117
File-URL: http://hdl.handle.net/10.1080/20430795.2021.2012117
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# input file: TSFI_A_2031849_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Matheus Koengkan
Author-X-Name-First: Matheus
Author-X-Name-Last: Koengkan
Author-Name: José Alberto Fuinhas
Author-X-Name-First: José Alberto
Author-X-Name-Last: Fuinhas
Author-Name: Emad Kazemzadeh
Author-X-Name-First: Emad
Author-X-Name-Last: Kazemzadeh
Title: Do financial incentive policies for renewable energy development increase the economic growth in Latin American and Caribbean countries?
Abstract:
This investigation approached the impact of financial incentive policies for renewable energy development on economic growth using panel data with seventeen countries from Latin America and the Caribbean (LAC) from 1990 to 2016. The fixed-effects model (FE) and the quantile via moments (QvM) models were used to accomplish this investigation. The FE and the QvM models showed that the financial incentive policies for renewable energy development and consumption of green energy, public and private capital stock, and globalisation increase economic activity in the countries from the LAC region, while gender inequality reduces it. Indeed, the positive impact of financial incentive policies for renewable energy development and consumption of green energy on economic growth could be related to the possible capacity of these policies to encourage investments in green energy technologies and the consumption of green energy.
Journal: Journal of Sustainable Finance & Investment
Pages: 161-183
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2022.2031849
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2031849
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# input file: TSFI_A_2013151_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Utkarsh Sharma
Author-X-Name-First: Utkarsh
Author-X-Name-Last: Sharma
Author-Name: Akshat Gupta
Author-X-Name-First: Akshat
Author-X-Name-Last: Gupta
Author-Name: Sandeep Kumar Gupta
Author-X-Name-First: Sandeep Kumar
Author-X-Name-Last: Gupta
Title: The pertinence of incorporating ESG ratings to make investment decisions: a quantitative analysis using machine learning
Abstract:
Global sustainability being the major goal ahead, socially conscious investors are concerned about non-financial dimensions of investments like impact on environment (E), social relations (S), and corporate governance (G). This research aims to answer whether including ESG data points is conducive to profitable investments while promoting sustainability. Web-scraped a unique dataset of ESG and key financial data of 1400+ companies from 34 stock markets internationally. Quantitative analysis is performed on this data with the aim of determining whether the qualitative aspect of sustainable investments is tantamount to financial parameters. Better ESG scores indicate better financial performance. Return on equity was 14% greater for top 10% ESG companies than bottom 10%. Prediction accuracy of ML models like linear, random forest regression increased when training data included both ESG and financial data. The research concludes with a propitious relationship between ESG data and financial growth parameters which are worth probing further.
Journal: Journal of Sustainable Finance & Investment
Pages: 184-198
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2021.2013151
File-URL: http://hdl.handle.net/10.1080/20430795.2021.2013151
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# input file: TSFI_A_2053943_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jaap Bartels
Author-X-Name-First: Jaap
Author-X-Name-Last: Bartels
Author-Name: Willem Schramade
Author-X-Name-First: Willem
Author-X-Name-Last: Schramade
Title: Investing in human rights: overcoming the human rights data problem
Abstract:
Human rights concerns are hardly integrated in investment decisions. That is a missed opportunity given investors’ crucial role in putting pressure on corporations to produce better information on adverse human rights impacts and addressing these impacts. This article investigates why human rights abuses by companies are so persistent. Explanations include the inherent complexity of global value chains; a lack of integration of human rights in business; insufficient legal enforcement; and inadequate data and limited pressure on corporations by investors. Although investors have launched several initiatives to improve their human rights performance they seem not yet able to solve the identified challenges and fulfil the requirements set out in the OECD guidelines and UNGP. We make suggestions to improve human rights data for investors by expanding the existing ecosystem and build two types of new institutions: specialised human rights data gatherers and dedicated human rights investment funds.
Journal: Journal of Sustainable Finance & Investment
Pages: 199-219
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2022.2053943
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2053943
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# input file: TSFI_A_2006129_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Franziska Schütze
Author-X-Name-First: Franziska
Author-X-Name-Last: Schütze
Author-Name: Jan Stede
Author-X-Name-First: Jan
Author-X-Name-Last: Stede
Title: The EU sustainable finance taxonomy and its contribution to climate neutrality
Abstract:
The EU Taxonomy is the first standardised and comprehensive classification system for sustainable economic activities. It covers activities responsible for up to 80% of EU greenhouse gas emissions and may play an important role in channelling investments into low-carbon technologies by helping investors to make informed decisions. However, especially in transition sectors much depends on the stringency of the technical performance thresholds that the Taxonomy applies to economic activities that are not yet ‘green’. This paper shows that for several sectors, the thresholds are not yet on track to support the transition towards climate neutrality. To this end, we analyse a large-scale public consultation with detailed responses to the specific thresholds from a variety of stakeholders. Especially for emission-intensive sectors, two distinct use cases of the Taxonomy can be distinguished: For new investments, criteria should be stricter than for current activities of companies. We also argue that for the sectors not covered by the Taxonomy, there is a need to differentiate between low-emissions activities and high-emission activities, which are incompatible with a low-carbon future.
Journal: Journal of Sustainable Finance & Investment
Pages: 128-160
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2021.2006129
File-URL: http://hdl.handle.net/10.1080/20430795.2021.2006129
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# input file: TSFI_A_2039998_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Mohammad Hassan Shakil
Author-X-Name-First: Mohammad Hassan
Author-X-Name-Last: Shakil
Author-Name: Ziaul Haque Munim
Author-X-Name-First: Ziaul Haque
Author-X-Name-Last: Munim
Author-Name: Stephen Zamore
Author-X-Name-First: Stephen
Author-X-Name-Last: Zamore
Author-Name: Mashiyat Tasnia
Author-X-Name-First: Mashiyat
Author-X-Name-Last: Tasnia
Title: Sustainability and financial performance of transport and logistics firms: Does board gender diversity matter?
Abstract:
This study examines the influence of corporate environmental performance (CEP) and corporate social performance (CSP) on corporate financial performance (CFP) of transport and logistics firms. Moreover, the moderating effects of board gender diversity (BGD) on the relationship between CEP and CFP, and CSP and CFP are also investigated. We use a cross-country sample of 56 transport and logistics firms with 243 firm-year observations between 2013 and 2017. We estimate the hypothesised relationships using fixed effect and random effect models. The findings reveal that CEP has a significant negative effect on CFP but the positive moderating effects of BGD mitigates the adverse effect. We further find a significant negative effect of CSP on CFP, but no moderating effect of BGD therein. The findings indicate that transport and logistics firms should maintain their board gender diversity to achieve a positive outcome of their investments into environmental performance.
Journal: Journal of Sustainable Finance & Investment
Pages: 100-115
Issue: 1
Volume: 14
Year: 2024
Month: 01
X-DOI: 10.1080/20430795.2022.2039998
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2039998
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Handle: RePEc:taf:jsustf:v:14:y:2024:i:1:p:100-115
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# input file: TSFI_A_2105792_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ibrahim Nandom Yakubu
Author-X-Name-First: Ibrahim Nandom
Author-X-Name-Last: Yakubu
Author-Name: Alhassan Musah
Author-X-Name-First: Alhassan
Author-X-Name-Last: Musah
Title: The nexus between financial inclusion and bank profitability: a dynamic panel approach
Abstract:
This study examines the impact of financial inclusion on bank profitability in Sub-Saharan Africa (SSA) over the period 2000–2017. Using different sub-indicators of financial inclusion, the study employs the principal component analysis (PCA) to generate an index of financial inclusion. Applying the generalized method of moments technique which addresses the problem of endogeneity, the results show that financial inclusion negatively influences bank profitability in Sub-Saharan Africa, particularly in the post-global financial crisis period. Banking sector stability is noted to positively and significantly drive bank performance. Besides, while inflation has a significant positive impact on profitability, the effect of economic growth on profitability differs depending on the period of analysis. The study suggests that policy measures aimed at achieving a financially inclusive economy should encompass policies directed at improving banking sector profitability. That is, strategies to stimulate financial inclusion should move in tandem with policies to boost profitability.
Journal: Journal of Sustainable Finance & Investment
Pages: 430-443
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2022.2105792
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# input file: TSFI_A_2069663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Eduardo Ordonez-Ponce
Author-X-Name-First: Eduardo
Author-X-Name-Last: Ordonez-Ponce
Author-Name: Truzaar Dordi
Author-X-Name-First: Truzaar
Author-X-Name-Last: Dordi
Author-Name: David Talbot
Author-X-Name-First: David
Author-X-Name-Last: Talbot
Author-Name: Olaf Weber
Author-X-Name-First: Olaf
Author-X-Name-Last: Weber
Title: Canadian banks and their responses to COVID-19 – stakeholder-oriented crisis management
Abstract:
The financial sector is essential to the stability of markets in times of crisis and during the pandemic, banks are called to contribute to society by easing access to credit or keeping rates low. This article explores Canadian banks’ responses to the pandemic assessing their products, services and stakeholders. Using crisis management and stakeholder theories, 3161 news articles about the five biggest Canadian banks and the pandemic were assessed as a proxy for banks’ responses to the pandemic using sentiment analysis, text mining, and statistical methodologies. Results show that banks were negatively impacted by the pandemic and that their stakeholders were approached differently highlighting the community over clients and employees. This study contributes to the need to adapt crisis management strategies and theories to unexpected crises, as others may come, and it sheds some light on stakeholder management measurement processes, which speak to how effective stakeholder management is.
Journal: Journal of Sustainable Finance & Investment
Pages: 388-409
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2022.2069663
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2069663
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# input file: TSFI_A_2016362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Arum Setyowati
Author-X-Name-First: Arum
Author-X-Name-Last: Setyowati
Author-Name: Peter Wanke
Author-X-Name-First: Peter
Author-X-Name-Last: Wanke
Author-Name: Fakarudin Kamarudin
Author-X-Name-First: Fakarudin
Author-X-Name-Last: Kamarudin
Author-Name: A. N. Bany-Ariffin
Author-X-Name-First: A. N.
Author-X-Name-Last: Bany-Ariffin
Author-Name: Bolaji Tunde Matemilola
Author-X-Name-First: Bolaji Tunde
Author-X-Name-Last: Matemilola
Title: Evidence from multiple countries: does investment into internal corporate social responsibility improve firm efficiency?
Abstract:
This paper investigates the relationship between internal corporate social responsibility (ICSR) and firm efficiency. Our research employed a two-stage analysis of 33,413 firm-year observations from between 2008 and 2020. First, we measured the level of firm efficiency using data envelopment analysis (DEA). Second, we used panel regression to investigate the impact of investments made by firms into ICSR on their efficiency. Our results showed that such investments into ICSR (e.g. on employee development) increased firm efficiency during the study period.
Journal: Journal of Sustainable Finance & Investment
Pages: 444-448
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2021.2016362
File-URL: http://hdl.handle.net/10.1080/20430795.2021.2016362
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# input file: TSFI_A_1992336_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Wei Kuang
Author-X-Name-First: Wei
Author-X-Name-Last: Kuang
Title: The heterogeneity of the diversification effect of sustainable development goals related exchange-traded funds
Abstract:
With the launch of the United Nations 2030 Agenda for 17 Sustainable Development Goals (SDGs), investors are encouraged to contribute to solving some of the world's most pressing problems through their business activities. This paper examines the diversification benefits of SDGs exchange-traded funds (ETFs) from the perspective of tactical and strategic investors. Specifically, the risk-adjusted returns of equity market portfolios with and without SDGs ETFs are compared. The incremental impact is assessed using variable weightings, while the persistence is investigated over time. The results show that the effects of diversification vary greatly across SDGs. ETFs linked to economic growth and innovation improve reward-risk ratios significantly, particularly for strategic investors. ETFs associated with renewable energy, on the other hand, deteriorate portfolio efficiency. The ETF based on good health has the potential to reduce portfolio downside risk. The findings provide useful implications for investors seeking to add value through socially responsible investing.
Journal: Journal of Sustainable Finance & Investment
Pages: 366-387
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2021.1992336
File-URL: http://hdl.handle.net/10.1080/20430795.2021.1992336
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# input file: TSFI_A_2040944_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ella Henry
Author-X-Name-First: Ella
Author-X-Name-Last: Henry
Author-Name: Andre Poyser
Author-X-Name-First: Andre
Author-X-Name-Last: Poyser
Title: Indigenous history, culture and values as investment philosophy: lessons from the New Zealand Māori
Abstract:
This paper argues that Māori history, culture and values inform the investment philosophy and approach of Māori Asset Holding Institutions (MAHI). MAHI have evolved over the last 30 years as the investment and commercial arms of iwi (tribal) organizations, in New Zealand. They seek to grow and sustain the financial and natural resources they have and continue to receive through the Treaty settlement process with the Government for redress of historical grievances against Māori, the indigenous people. This paper discusses the application of Māori culture and values to iwi investments firms. By providing a critical review of the literature on the socio-cultural and historical context of Māori investment thinking, this paper hopes to highlight the differences between an Indigenous investment framework and traditional Western frameworks. It also seeks to draw attention to the need for further research on the performance and operations of Māori investments.
Journal: Journal of Sustainable Finance & Investment
Pages: 449-461
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2022.2040944
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# input file: TSFI_A_2119833_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Salah Alshorman
Author-X-Name-First: Salah
Author-X-Name-Last: Alshorman
Author-Name: Sumaia Qaderi
Author-X-Name-First: Sumaia
Author-X-Name-Last: Qaderi
Author-Name: Turki Alhmoud
Author-X-Name-First: Turki
Author-X-Name-Last: Alhmoud
Author-Name: Rasmi Meqbel
Author-X-Name-First: Rasmi
Author-X-Name-Last: Meqbel
Title: The role of slack resources in explaining the relationship between corporate social responsibility disclosure and firm market value: a case from an emerging market
Abstract:
The purpose of this study is to investigate the moderating effect of slack resources (namely, profitability and cash holdings) on the relationship between corporate social responsibility disclosure (CSRD) and firm market value. The authors test the hypothesis through performing panel data analysis for a sample of 95 non-financial Jordanian firms listed on the Amman Stock Exchange from the period 2011 to 2016. Content analysis was employed to evaluate the level of CSRD based on an index of 42 items and four themes. While the findings show no significant relationship between CSRD and firm market value, higher slack resources were found to positively moderate this relationship. The outcomes therefore suggest that slack resources accentuate the effect of CSRD on firm market value. The use of Jordanian firms is distinctive and provides valuable insight into contexts in which the market tends to place less weight on a firm's CSR activities.
Journal: Journal of Sustainable Finance & Investment
Pages: 307-326
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2022.2119833
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2119833
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# input file: TSFI_A_2045890_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Alexey Rubtsov
Author-X-Name-First: Alexey
Author-X-Name-Last: Rubtsov
Author-Name: Sally Shen
Author-X-Name-First: Sally
Author-X-Name-Last: Shen
Title: Dynamic portfolio decisions with climate risk and model uncertainty
Abstract:
We study the effect of investment horizon on the optimal stock–bond–cash portfolio in a dynamic model with uncertainty about climate change. The stock risk premium is assumed to be an affine function of the average global temperature and an unobserved factor which is estimated via Bayesian learning. We assume that the probability distribution of future temperature is uncertain. The optimal investment strategy, robust to the uncertainty about climate change, is derived in closed form and analyzed for returns on the S&P500 index and the S&P500 ESG index. We find that stock market investment is quite sensitive to climate uncertainty with allocation to the S&P500 index being the most sensitive. We also show that, even for relatively short time horizons, welfare losses from climate uncertainty could be large for investments in either the S&P500 index or the S&P500 ESG index.
Journal: Journal of Sustainable Finance & Investment
Pages: 344-365
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2022.2045890
File-URL: http://hdl.handle.net/10.1080/20430795.2022.2045890
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# input file: TSFI_A_2315151_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Eleonora Broccardo
Author-X-Name-First: Eleonora
Author-X-Name-Last: Broccardo
Author-Name: Andrea Trevisiol
Author-X-Name-First: Andrea
Author-X-Name-Last: Trevisiol
Author-Name: Sandra Paterlini
Author-X-Name-First: Sandra
Author-X-Name-Last: Paterlini
Title: Climate risk in finance: unveiling transition risk exposure in green vs. brown companies
Abstract:
This study delved into transition risk by introducing a novel Climate Transition Score to evaluate the climate-related performance of the most capitalized firms in the stock markets of developed countries. Then we classified these firms into green and brown portfolios. Our analysis demonstrates that high-emission or brown firms bear more risk than their green counterparts do, even if they do not consistently outperform them.To gauge exposure to transition risk, we employed asset pricing factor models such as CAPM, Fama and French 3-Factor, and Carhart’s (1997) model. However, these models failed to provide a satisfactory explanation for portfolios’ excess returns in their standard formulation. To address this gap, we introduced the Green Minus Brown risk factor. This addition enhanced the explanatory power of the models, emphasizing the heightened exposure of brown companies to transition risk.
Journal: Journal of Sustainable Finance & Investment
Pages: 237-257
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2024.2315151
File-URL: http://hdl.handle.net/10.1080/20430795.2024.2315151
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# input file: TSFI_A_2031850_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rizwan Ullah
Author-X-Name-First: Rizwan
Author-X-Name-Last: Ullah
Author-Name: Habib Ahmad
Author-X-Name-First: Habib
Author-X-Name-Last: Ahmad
Author-Name: Sohail Rizwan
Author-X-Name-First: Sohail
Author-X-Name-Last: Rizwan
Author-Name: Muhammad Sualeh Khattak
Author-X-Name-First: Muhammad Sualeh
Author-X-Name-Last: Khattak
Title: Financial resource and green business strategy: the mediating role of competitive business strategy
Abstract:
Green practices and sustainability are mounting in business organizations around the world. All sized firms have concentrated on environmental and social strategies to benefit the societies that payback in sales and revenue. However, little is known about how Small and Medium Enterprises (SMEs) improve green strategies in emerging markets, especially in Pakistan. To contribute to the existing literature in small businesses, this research tests the influence of financial resources on green business strategy (environmental, social and economic) with a mediating role of competitive business strategy (differentiation and cost leadership). The results of the structural equation modeling based on the data set of 217 Pakistani SMEs indicate that financial resources do not directly influence green business strategy. However, the relationship between financial resources and green business strategy is significantly mediated by competitive business strategy. This research recommends SMEs utilize their financial resources efficiently and economically to practice green activities.
Journal: Journal of Sustainable Finance & Investment
Pages: 410-429
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2022.2031850
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# input file: TSFI_A_2090310_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Emine Kaya
Author-X-Name-First: Emine
Author-X-Name-Last: Kaya
Title: How does financial performance affect financial inclusion for developing countries?
Abstract:
This study aims to detect the relationship between financial inclusion and financial performance in the banking sector. Within this scope, firstly, we develop an index for financial inclusion which consists of various dimensions for 85 developing countries in the 2005–2017 time period. Then, we apply static and dynamic panel data analyses. Static panel data analysis findings indicate that financial performance indicators such as bank return on assets, bank return on equity, and bank net interest margin positively affect and bank lending-deposit spread negatively affects financial inclusion, but bank non-interest income to total income has a statistically insignificant coefficient. Also, as a robustness analysis, dynamic panel data analysis provides evidence that financial performance is important for financial inclusion. According to our findings, we can say that the increase in the profitability of the banking sector is one of the triggers of financial inclusion for developing countries.
Journal: Journal of Sustainable Finance & Investment
Pages: 462-481
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2022.2090310
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# input file: TSFI_A_1979926_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Bazeet Olayemi Badru
Author-X-Name-First: Bazeet Olayemi
Author-X-Name-Last: Badru
Author-Name: Ameen Qasem
Author-X-Name-First: Ameen
Author-X-Name-Last: Qasem
Title: Corporate social responsibility and dividend payments in the Malaysian capital market: the interacting effect of family-controlled companies
Abstract:
This study investigates the influence of corporate social responsibility (CSR) on dividend payments using a sample of 263 Malaysian companies that participated in the Capital Market Development Fund–Bursa Research Scheme over the period 2008–2013. The study applies the pooled ordinary least squares, quantile, Tobit, Heckman’s self-selection model and propensity score matching regression techniques. The results from these techniques show that CSR is significantly and positively associated with dividend payments, meaning that the higher the CSR, the greater the amount of dividends paid to shareholders. However, when the interacting effect of family control is considered on the association between CSR and dividend payments, family control has a significantly negative influence on the relationship, indicating that family companies engage in less CSR, thereby negatively affecting dividend payments. Overall, the findings support the view that serving the interest of stakeholders paves the ways for satisfying shareholders’ claims, and reveals the reality of family companies’ behaviour to shareholders and stakeholders. Thus, this study adds to the literature on the dividend conundrum and the role CSR plays in shareholders’ prosperity’ it is the first attempt to establish the direct effect of CSR on dividend payments in the Malaysian capital market and study the interacting effect of family control.
Journal: Journal of Sustainable Finance & Investment
Pages: 283-306
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2021.1979926
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# input file: TSFI_A_2077291_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: John Magnus Roos
Author-X-Name-First: John Magnus
Author-X-Name-Last: Roos
Author-Name: Magnus Jansson
Author-X-Name-First: Magnus
Author-X-Name-Last: Jansson
Author-Name: Tommy Gärling
Author-X-Name-First: Tommy
Author-X-Name-Last: Gärling
Title: A three-level analysis of values related to socially responsible retirement investments
Abstract:
The aim is to investigate the value basis of Socially Responsible Retirement Investments (SRRI) in a study of Swedish pension investors in the age range 18 to 65 years (N=1005). Logistic regression analyses were performed with self-reported SRRI choice as dependent variable and different levels of values as independent variables. On a higher level of analyses, self-transcendent values, especially universalism (e.g., equality, protecting the environment, and social justice), have the most important influences on SRRI choice. In contrast, on a lower-level analysis, SRRI choice is influenced by self-enhancement values with high priority for authoritarian power and low priority for wealth. The three-level analysis of values (self-transcendence vs self-enhancement value orientation, motivational domain, and value) questions the contradiction between dimension poles of values and the structuring of values in interrelated motivational domains. The results thereby clarify some previous findings and increase the understanding of the value basis of SRRI.
Journal: Journal of Sustainable Finance & Investment
Pages: 327-343
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2022.2077291
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# input file: TSFI_A_2320318_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Sofia Maniatakou
Author-X-Name-First: Sofia
Author-X-Name-Last: Maniatakou
Author-Name: Beatrice Crona
Author-X-Name-First: Beatrice
Author-X-Name-Last: Crona
Author-Name: Isabelle Jean-Charles
Author-X-Name-First: Isabelle
Author-X-Name-Last: Jean-Charles
Author-Name: Moa Ohlsson
Author-X-Name-First: Moa
Author-X-Name-Last: Ohlsson
Author-Name: Kate Lillepold
Author-X-Name-First: Kate
Author-X-Name-Last: Lillepold
Author-Name: Amar Causevic
Author-X-Name-First: Amar
Author-X-Name-Last: Causevic
Title: A science-based heuristic to guide sector-level SDG investment strategy
Abstract:
Aligning investments with Sustainable Development Goals (SDGs) has been a longstanding ambition for many private investors. The assessment of corporate impact on the SDGs is not a trivial task, and most present-day attempts often overlook SDG interactions, and lack scientific anchoring and transparency. We present an evidence-based review approach for investors to assess sector-level impacts on individual SDGs, and score these using a traffic-light system. Our initial review documents impacts of 81 economic sectors on SDGs 1-16. Results show that environmental SDGs are impacted negatively by most economic sectors, and that primary sector activities negatively impact the highest number of SDGs. Using the agricultural sector as a case, we draw on Causal Loop methodology to illustrate spillovers resulting from SDG interactions. Our findings point to three key considerations of relevance for sustainable investment strategies; the necessity to capture ‘impact shadows’, spillovers across SDGs, and the hierarchical nature of the SDGs.
Journal: Journal of Sustainable Finance & Investment
Pages: 258-282
Issue: 2
Volume: 14
Year: 2024
Month: 04
X-DOI: 10.1080/20430795.2024.2320318
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