Abstract
This paper is devoted to the comparing stock portfolios of the largest conventional and responsible Ukrainian companies as the basis for substantiating the structure of an optimal investment portfolio in the current conditions of development of the financial market of Ukraine. The empirical basis of the research was the data of quotations of shares of 6 most liquid conventional and 6 responsible companies in the Ukrainian and Warsaw exchanges. The methodological basis of calculations was the classic Markowitz portfolio optimization model. The key hypothesis of the research was to check that the conventional investment portfolios of Ukrainian companies outperform the responsible investment portfolios by their parameters (return, risk). This hypothesis was rejected. The obtained results have not only theoretical significance – both the rationale for the threat of responsible investment in Ukraine and the applied value for market participants in terms of investment decisions making, taking into consideration the ESG criteria, and the formation of investment portfolios from shares of the responsible companies, the key parameters of which exceed the conventional portfolios.
Highlights
The expansion of responsible investment as a source of financing for the sustainable development economy in the world is characterized by a growing trend
According to the Global Sustainable Investment Alliance, from 2014 to 2016, the volume of operations in responsible investment markets was growing at a steady pace
The volume of responsible investment in the United States grew by 33.0% and reached USD 8.7 trillion, while in the EU, its growth rate amounted to 11.0% and in absolute terms, this figure reached USD 12 billion (GSIA, 2016)
Summary
The expansion of responsible investment as a source of financing for the sustainable development economy in the world is characterized by a growing trend. The volume of responsible investment in the United States grew by 33.0% and reached USD 8.7 trillion, while in the EU, its growth rate amounted to 11.0% and in absolute terms, this figure reached USD 12 billion (GSIA, 2016). The introduction of new approaches to the formation and selection of investment portfolios and justification of the appropriateness of responsible investment can be a trigger to stabilize the stock market and reorient its instruments to finance sustainable development
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
