Impact Of Investment Research Articles

Geographic Determinants of Impact Investments

Geographic Determinants of Impact Investments

Sustainable Finance and Theories of Green Financing in Global Nutrition Projects

This study examines the convergence of sustainable finance and green financing theories in addressing global nutrition challenges, with a focus on the dual issues of environmental degradation and malnutrition. By using a new theoretical framework, the study shows how financial tools usually used for environmental projects, like green bonds, sustainability-linked loans, and environmental impact investments, can be used to help with global nutrition initiatives. The Triple Bottom Line (TBL) Theory anchors the framework, emphasizing the convergence of environmental sustainability, social responsibility, and economic viability in boosting food security. Additionally, the study draws upon the Environmental Kuznets Curve (EKC) hypothesis and the Polluter Pays Principle (PPP) to elucidate how green financing can simultaneously mitigate malnutrition and preserve ecosystems. The study underscores the theoretical implications of applying green finance to nutrition projects, examining both the advantages and challenges, particularly in developing countries where resource constraints and environmental degradation are more acute. The study also identifies key risks associated with green financing, including political, regulatory, and currency risks, and proposes strategies for managing these risks. Furthermore, the study provides insights into future research directions, exploring the role of impact investors and the application of digital finance innovations, such as blockchain, in enhancing the efficacy of green financing for nutrition projects.

Investing for Impact: A Guide for Impact Investors and Sustainable Entrepreneurs

Investing for Impact: A Guide for Impact Investors and Sustainable Entrepreneurs

Loss Aversion, Overconfidence of Investors and their Impact on Market Performance: Evidence from the London Stock Exchange (FTSE100)

The Capital Asset Pricing Model (CAPM) has traditionally explained the relationship between risk and expected return, assuming efficient markets and rational investors. However, empirical evidence has increasingly challenged these assumptions, leading to the emergence of behavioural finance, which examines how psychological factors impact investor behaviour and market outcomes. This study explores the effects of two key behavioural biases—loss aversion and overconfidence—on the performance of FTSE100-listed companies. Using panel data models on a sample of six companies from industrial and service sectors between January 2004 and December 2022, our research finds that investor sentiment significantly influences market performance. Specifically, overconfidence correlates positively with the stock performance of industrial firms but does not affect service sector firms. Loss aversion, however, does not show a significant impact on performance in the UK market. These findings suggest that overconfidence may have a more pronounced effect on market performance compared to loss aversion. This has implications for portfolio managers and financial regulators, as understanding these psychological biases can enhance market predictions and stability. By incorporating investor sentiment into market analysis, stakeholders can better anticipate market fluctuations and mitigate potential risk.

Editorial: Bridging the gap between Islamic finance and Sustainable, Responsible, and Impact Investing

In the realm of present-day economics and finance, two significant paradigms, Islamic Finance and Sustainable, Responsible and Impact (SRI) investing, have emerged as strong forces shaping investment ideologies and strategies. Although emerged as distinct fields in global finance, they potentially complement each other. Notably, the financial worth of Islamic Finance is around USD 4.5 trillion globally with an annual growth of 11 to 12 percent, while the financial worth of SRI investing is almost 10 times higher than that of Islamic finance. They have a joint core value proposition that aligns financial decisions with ethical principles while emphasizing a positive impact on society and the environment. Even though their origins and operational structure differ, it is worthwhile to explore the intersection and potential bridges between them.

Effect of Behavioral Biases on Investment Decision Making in Nepalese Stock Market with the Mediating Role of Investors’ Sentiment

The current study explores the impact of behavioral biases such as market factors, herding behavior and awareness factors on investors’ decision-making on the Nepal Stock Exchange and also investigates the mediating role of investors’ sentiment in the relationship among the variables. To comprehend investor sentiment (IS) and how individual investors make decisions, this study introduced an innovative conceptual framework incorporating herding behavior, market dynamics, and awareness factors. A quantitative methodology was used to conduct the investigation, specifically employing a survey research design. This study made use of primary data that was collected by means of a structured questionnaire and gathered data from 408 individual investors. The convenience sample method was used, while structural equation modeling was used as a statistical tool to test hypothesis. It was determined how the market factor, herd behavior, and awareness affect investors' sentiment and decision-making by using structural equation modeling. The result showed that the most notable factors that affect investors’ sentiment were herding factors. Similarly, in the absence of a moderating variable, investors' sentiment is affected by all variables, including market factors, herding behavior, and awareness factors which have a significant impact on investors decision-making in the Nepal Stock Exchange. This study aims to assist individual investors in Nepal by guiding their investment choices and preventing sentiment-driven errors. It emphasizes the importance of understanding fellow investors' sentiment and suggests that awareness programs can enhance market understanding. Previous research has typically examined only a few factors at a time. This current study explores how various factors affecting investor sentiment—like market factors, herding behavior, and awareness—impact investment decision-making among individual investors in Nepal. Importantly, these factors have never been studied together in the context of how Nepalese individual investors make decisions about their investments.

Public-private partnerships and impact investing

This paper investigates the application of Impact investing within the framework of Public-Private Partnerships (PPPs) as exemplified on the case study of Treviso. Impact investing represents one the possible tools that can help with combining financial sources and expertise. Utilizing a case study methodology, this paper delves into the dynamics, challenges, and outcomes of this partnership model and the importance of these pioneering projects for future collaborations.

Behavioral Biases and Fear of Missing Out Impact Investment Decisions in Thailand during COVID-19 Pandemic

Purpose – the purpose of this study is to explore the Behavioral Biases and Fear of Missing Out on the Impact on Investment Decisions in Thailand during the COVID-19 Pandemic. In this research, the researcher will accentuate. Design/Methodology/Approach – The researcher used numerous components to determine the level of impact of investment decision toward customer satisfaction, including research design, sampling plan, research instruments, the validity of the pilot test, methods of data gathering and procedures, and statistical treatment of data. Findings – this study arranged determinants that influence Behavioral Biases and Fear of Missing out Impact Investment Decisions of people in Thailand Covid-19 spread. Our research was about the relationship between employee involvement and motivation which are the keys to job satisfaction and affect job performance. Moreover, job performance is also got affected by remote working and job involvement of employees. Research Limitations/Implications – there are several limitations to investigating the factors that affect job performance during work from home. The previous studies are used for specific purposes. Moreover, there is a small amount of previous research on the topic due to work from home not being standard practice before the COVID-19 pandemic.

Corporate ESG issues and retail investors’ investment decision: a moral awareness perspective

The specific goal of this study is to find out how retail investors consider company ESG issues while making investment decisions, with their moral awareness (MA) serving as a moderator. The framework's foundations are the norm activation model (NAM) and the theory of planned behavior (TPB). The report is based on a questionnaire survey that was completed by 599 retail investors in Dhaka and Chattagram, Bangladesh. To examine the data and verify the theories, the PLS path modeling approach is employed. Six hypotheses are investigated using structural equation modeling; five are found to be significant and one to be non-significant. All of the hypotheses are positive. The findings of the research demonstrate that when making investment decisions, investors take a company's social, environmental, and governance issues into account. The moral awareness of investors seems to influence their investment decisions as well. By presenting empirical data on the relationship between business ESG issues and investment decisions with moderating impacts on investors' moral awareness, the paper advances the field of behavioral finance research. It implies that corporate advertising tactics may support global reporting requirements, draw impact investors, and promote moral and environmental education. To safeguard ESG concerns and promote sustainable growth of the capital market and economy, governments should enact laws, rules, and directives.

Bonds with Benefits: Impact Investing in Corporate Debt

The regulatory focus on quantifiable sustainable investing shifts investors’ demand toward impact products, which creates challenges in achieving their primary target of outperformance. This study demonstrates the implications of sustainable investment in actively managed credit portfolios using carbon emissions, Sustainable Development Goals (SDGs), and green bonds. All three measures exhibit a low correlation with systematic factors, such as value and momentum, providing an opportunity for a sustainable alpha. Furthermore, we demonstrate a concave relationship between outperformance and sustainability. Therefore, systematic investors achieve a sustainable portfolio at a low cost, whereas sustainability-oriented investors harness factor returns and meet their initial targets.

To read or to listen? Does disclosure delivery mode impact investors' reactions to managers' tone language?

AbstractWe examine how disclosure delivery mode—oral versus written—influences investors' reactions to managers' tone language. We hypothesize that listening to disclosures, relative to reading them, causes managers' qualitative word choices to have a greater impact on investors' judgments. We theorize that this effect occurs because oral delivery mode promotes heuristic processing and qualitative tone language is an easy‐to‐process disclosure element. The results from an experiment in a conference call setting are consistent with our hypothesis and suggest a boundary condition. Specifically, the interaction of mode and tone language is significant in a setting where heuristic processing is likely (good earnings news) but not in a setting where investors are likely to scrutinize the disclosure (bad earnings news). Our results inform investors about the potential consequences of how they consume disclosures. Specifically, we show that investors are more susceptible to managers' tone language when listening to disclosures containing good news than when reading them.

Digitalization and sustainable development goals in emerging Islamic economies

Purpose This study examines the intersection of emerging Islamic economies and the digital economy in the context of the United Nations sustainable development goals (UN SDGs). This study aims to investigate the opportunities, challenges and barriers faced by emerging Islamic economies in the context of the digital economy. It specifically focuses on how these economies can contribute to the achievement of UN SDGs established in 2015. In addition, the study explores the prospects of Islamic digital finance and its potential to facilitate the adoption of the UN SDGs. Design/methodology/approach The following components outline the design, methods and approach of this study, identify and select specific UN SDGs that are relevant to the research aims. These selected goals serve as the basis for evaluating the impact of conventional and Islamic digital financial inclusion, gathered data from credible sources such as Bloomberg and Refinitiv Thomson Reuters to support the analysis. These sources provide comprehensive data on global indicators, progress and targets related to the UN SDGs, compare and evaluate the impact of both conventional and Islamic digital financial inclusion strategies on the selected UN SDGs; the study uses qualitative interpretation of the gathered data, which involves identifying patterns, themes and connections within the data to draw meaningful conclusions. Findings Results revealed that Islamic digital finance has the potential to contribute significantly to achieving the UN SDGs by promoting financial inclusion, encouraging ethical investments, supporting small and medium enterprises, promoting sustainable investments and leveraging technology to expand access to Islamic financial services and support sustainable investments. Research limitations/implications While there are many potential benefits of Islamic digital finance in helping to achieve the UN SDGs, there are also several limitations that should be considered in research, such as limited access to digital infrastructure, regulatory challenges, product offerings, scale, awareness and adoption. Addressing these limitations will be critical to maximizing the potential of Islamic digital finance to contribute to achieving the UN SDGs. Practical implications This study points to an important gap in the literature; for practitioners, this study has significant managerial consequences for achieving the UN SDGs in emerging economies by facilitating social impact investments and promoting ethical and sustainable investments. Originality/value This study’s uniqueness lies in its exploration of the limited exploration of connecting the implementation of digital financial systems to promote UN SDGs within emerging Islamic economies.

The nature of measurement across the hybridised social sector: A systematic review of reviews

AbstractPerformance measurement and management serve as the key elements for demonstrating accountability to funders and stakeholders for many social entities. Although substantial study has been completed to understand the measurement practices employed by specific models of social entities, there is an absence of studies taking a broader perspective on organisational performance measurement across the entire system. A systematic review of reviews methodology identified previous systematic and meta‐studies of social performance measurement and management practices across the entire sector. The 19 reviews identified examined the measurement and management practices of a range of hybrid social entities including non‐profits, social enterprises, corporate social responsibility undertakings, impact investments and bonds, government departments, and knowledge‐intensive public organisations. The motivations of demonstrating accountability and learning opportunities for improvement are congruous across all entities. However, the approaches and methods employed to measure impact and meet these objectives are distinct between the different entity forms. Furthermore, acknowledgement of the different measurement approaches of other hybrid social entities was notably absent perhaps indicating a lack of knowledge dissemination across the broader system. Some barriers and complexities seem to be generalised across all hybrid entities; however, other challenges appear to be unique to specific hybrid models and measurement approaches. Through amalgamating a broad range of papers, we present opportunities to strengthen performance measurement and management across an increasingly hybridised social sector.Points for practitioners Performance measurement and management are crucial for demonstrating accountability and improving social impact for all forms of hybrid entities including non‐profits, social enterprises, corporate social responsibility undertakings, impact investments and bonds, government departments, and knowledge‐intensive public organisations. While the measurement practices of these organisational entities have been studied separately, there has been a lack of understanding as to the common practices and deviations across a hybrid organisational system. Practitioners should explore the different approaches and methods employed by the various social impact entities to identify opportunities for improved practice. Meeting the information needs of the diverse range of stakeholders in social services sector poses a challenge for all social initiatives. However, our review highlights the importance of ensuring that the voice and perspectives of social service recipients are adequately represented.

Market system strategies: Antecedents to financial uptake among women-owned MSMEs in informal settlements in Kenya

Despite the effort to increase financial inclusion, women-owned Micro, Small, and Medium-sized Enterprises (MSMEs) continue to face challenges in the uptake of financial services. Low financial uptake is strongly associated with business failure leading to low income and living standards among women entrepreneurs in marginalized areas. Market system strategies are crucial in determining businesses' level of financial uptake. The study investigated the effect of market system strategies on the financial uptake of women-owned MSMEs in the informal settlement of Nyeri County. Specifically, it investigated the effect of business readiness, financial literacy, investor relationships, and investment impact on financial uptake among women-owned MSMEs. The study variables were anchored on Ricky Griffin's model, Theory of Change, and Refinancing theory. The study used a descriptive research design, specifically a cross-sectional design. The target population was 890 women-owned MSMEs in the informal settlements of Nyeri county. Proportionate stratified and random sampling were used to obtain a sample of 275 businesses representing approximately 30% of the study population. Data was collected using structured questionnaires. A pilot test was conducted using ten individuals to test and improve the study questionnaire Reliability was tested using Cronbach's alpha, where an alpha of 0.7 was the acceptable threshold. Regression analyses indicated that the market system strategies, business readiness, financial literacy, impact investment, and investor relationship positively and significantly affected financial uptake, with p-values lower than 0.05 alpha. The study found that businesses with better market system strategies have a higher financial uptake. Based on the findings of this study, it is recommended that policies and interventions aimed at improving financial uptake among women-owned MSMEs should focus on enhancing business readiness and financial literacy and building strong impact investment and investor relationships. The county government, NGOs, and others interested stakeholders should encourage women entrepreneurs in informal settlements of Nyeri county to seek training and support to develop their business skills and increase their understanding of financial uptake. Furthermore, the county and national governments should connect women-owned MSMEs with impact investors and establish relationships to provide funding, support, and mentorship. Finally, policymakers and stakeholders in the financial sector should consider creating an enabling environment that supports and incentivizes impact investment in MSMEs, especially those owned by women, to increase their financial uptake.

Impact Investing and Sustainable Global Value Chains: Enabling Small and Medium Enterprises Sustainability Strategies

Improving the sustainability of SMEs in developing and emerging economies, which represent the vast majority of the population of MNCs’ supplier networks, is fundamental to achieving the Sustainable Development Goals. However, SMEs often lack viable financing options to invest in their sustainability. Emergent impact investing seeking social, environmental, and financial returns aims to address this financing gap. How does impact investing influence sustainability in the global value chains of MNCs? Studying the nexus between impact investing and the strategies of SMEs in Latin America’s coffee and forestry sectors, I provide new insights into how the modes of financing suppliers’ production activities improve GVC sustainability.

Impact Investing in the Hospitality Industry: Social Responsibility and Economic Benefits

This research investigates the intricacies of impact investing in the hospitality industry and its potential implications for fostering corporate responsibility. The study highlights the pivotal role of impact investing policies in promoting regional economic development and environmental betterment. In the face of pressing global environmental challenges, such as climate change and energy resource scarcity, the study underscores the need for effective measures that positively shape state policy formation. The primary goal of such policy initiatives is to bolster human capital development and ensure the long-term realization of strategic objectives. This holds particular significance for nations with substantial potential in the tourism industry, where the hospitality sector acts as a linchpin for tourism recovery and presents compelling opportunities for impactful investments. As energy shortages and dependence took center stage in 2022, the research calls for the exploration of alternative renewable energy sources and the development of new commodity markets to invigorate energy sector growth. Against the backdrop of the hospitality industry’s post-pandemic resurgence, the integration of impact investing emerges as vital for both developing and developed nations. Given the prevailing global environmental crisis, the study underscores the imperative of effective international cooperation mechanisms to tackle environmental challenges, positioning impact investing as a catalyst for achieving sustainable economic development goals, advancing eco-friendly practices, and addressing global environmental imperatives.

Sustainable investments: a scientometric review and research agenda

PurposeSustainable investments (SI) represent a promising class of investments, combining financial returns with mitigating environmental challenges, achieving SDG goals and creating a positive business impact. An enhanced global focus on climate change developments in the backdrop of COP26 and COP27, raised the need for comprehensive literature mapping, to understand the emerging themes and future research arenas in this field.Design/methodology/approachThe authors apply a quali–quantitative approach of bibliometric methods coupled with content analysis, to review 1,022 articles obtained from the Web of Science (WoS) database for 1991–2023.FindingsThe results identify the leading authors and their collaborations, impactful journals and pioneering articles in sustainable investment literature. The authors also indicate seven major themes of SI to be financial performance; fiduciary duty; CSR; construction of ESG-based portfolios; sustainability assessment tools and mechanisms; investor behavior; and impact investing. Further, content analysis of literature from 2020 to 2023 highlights emerging research issues to be SDG financing via green bonds and social impact bonds; investor impact creation via shareholder engagement and field building strategies; and governance related determinants of firm-level sustainable investments. Finally, the authors discuss the research gaps across these themes and identify future research questions.Originality/valueThis paper crystallizes research themes in sustainable investment literature using a vast coverage of globally conducted studies published in reputed journals till date. The findings of this study coupled with future research questions provide a well-grounded foundation for new researchers to further explore the emerging dimensions of this field.

PRIORITIES OF IMPACT INVESTING IN ENVIRONMENTAL PROTECTION PROJECTS: THE CASE OF THE FUTURE POST-WAR RECONSTRUCTION OF UKRAINE

The purpose of this article is to identify environmental protection projects for priority impact investing on the example of the future post-war reconstruction of Ukraine. To evaluate priorities, it is proposed to use the results of a survey of ten independent experts in the field of environmental projects and ecology, belonging to the public, private and non-profit sectors of Ukraine. The survey includes an assessment of environmental protection projects based on the importance and effectiveness of their impact, the characteristics of stakeholders, the duration and risks of the projects, their contribution to the environment and sustainable development. The obtained scores are ranked based on the criteria of Laplace, Wald, Hurwitz, Savage, and Bord and Condorcet rules. In accordance with this, the most priority projects for impact investing are environmental protection projects aimed at land reclamation, conservation and protection, forest restoration, implementation of the national system of trading quotas for greenhouse gas emissions, and eco-modernization of industrial and infrastructural enterprises. This indicates the need for a comprehensive multi-vector approach to the selection of priority areas for impact investing. The lessons learned will be useful for the effective direction or selection of investment projects, their forecasting and analysis.

Principles for guiding research and innovation toward sustainable and equitable agrifood systems

Investments in research and innovation are critical for transformations toward sustainable agrifood systems and for meeting the Sustainable Development Goals and the Paris Climate Agreement. However, the frequent neglect of environmental and social goals by investors remains a major challenge. System-oriented approaches to designing and monitoring innovations can be a promising solution to guide innovations and allow investors to identify those that are more sustainable. This article presents a set of eight ‘Principles for Agrifood Research and Innovation’ developed by an international multi-stakeholder task force including staff of research agencies, funders and impact investors, private sector, non-governmental organizations, and benchmarking organizations. The article explains the rationale for the selection of the principles and describes potential ways forward for their uptake and implementation, building on pilots done by several research and funding organizations.

Achieving social effect as the goal of innovative investing

The article focuses on the necessity of independent development and legislative institutionalization of innovative investment as a comprehensive institution of economic law aimed at providing legal order in the turnover of exclusive rights to use innovative products through investment in the economic activities of the recipient of these rights, with the purpose of obtaining investment returns by the investor through increasing the technological level of the recipient’s production activities and the competitiveness of relevant goods and services. Innovative activities are considered from the perspective of investments and achieving social impact.It is noted that innovative investment is predominantly of a commercial nature, aimed at obtaining profits from the realization of innovative products. However, the question of the expediency of carrying out innovative investment for the purpose of achieving social impact is also considered. Innovative investment that seeks to implement scientific and technological achievements with long payback periods, but without direct profit, is investigated. To this end, the legal category of “social impact” is explored, its essence is defined, and problems of legislative definition are identified.It s emphasized that non-commercial innovative investment requires separate legislative regulation, as it differs from commercial investment in its nature and goals. Non-commercial innovative investment may be undertaken for the purpose of achieving social impact, and therefore, the adoption of a separate “Law on Investment for Social Impact” is proposed, which would provide an appropriate legal foundation and promote the development of innovative projects in the country.Equally important is the study and consideration of foreign experience in carrying out non-commercial investment, but with due regard to the national economic situation of the state, so that the adopted provisions can be effectively applied in the specified relationships and not have a purely declarative nature.