1,720,982 research outputs found
Robo-advisors: A systematic literature review
No full textUsing a systematic literature review, our study analyzes articles on robo-advisors between 2017 and 2022. Our review identifies four relevant research streams: early classification of robo advisors, behavioral topics, performance, and algorithm modelization. Finally, we propose relevant research questions for each stream, providing scholars with new research angles. Our considerations are also valuable for asset managers, banks, and other financial companies since adopting robo-advisors affects their business models through clients' preferences and cost structure
Socially Responsible Investments and their Anticyclical Attitude during Financial Turmoil. Evidence from the Brexit shock
Full text linkIn recent years, many studies investigate whether Socially Responsible Investments (SRIs) outperform traditional investments. After the 2008 financial crisis another research question emerged: are SRIs able to overcome market downturns? This stream of literature investigates many different geographies and financial crises; however, to the best of our knowledge, no study has investigated SRIs reaction to the United Kingdom European Union Membership Referendum (Brexit).
The aim of this paper is to analyze SRIs prices reaction to the Brexit referendum on June 23, 2016. We assessed whether there was a difference: a) with SRIs price reaction to the Lehman Brothers bankruptcy; b) compared to various sectors and the geographical residence of companies.
Findings show that SRI reacted more negatively than non-SRI to Brexit, while they reacted better to Lehman shock. Thus, this paper contributes to the existing literature showing that SRIs have anticyclical power especially during the most severe financial crisis, like the Lehman turmoil
The Credit Risk of Sustainable Firms during the Pandemic
Full text linkThis study investigates how the credit risk of more sustainability-oriented firms changes when national governments intervene in their economies to counterbalance the COVID-19 pandemic. For this reason,
we examine how the credit default swap spread changes on a database of all listed firms—for which a
credit default swaps (CDS) contract is available—in Europe and the United Kingdom during the whole
year of 2020. We find that when national governments intervene in the local economies, the CDS
spreads for these firms decrease more than for other firms. Furthermore, the CDS spread changes
are more sensitive to those policies aimed at supporting household and business income during the
pandemic rather than those policies related to stay-at-home measures and investments in healthcare.
Our results corroborate previous theories linking firm sustainability, equity, and credit risk
Impact-leadership e fondi di investimento a impatto sociale e ambientale: quale relazione?
No full textThis article studies the relationship between the background of the social impact fund’s
leadership team and the fund orientation towards financial performance and impact
measurement. By analyzing a sample of 120 fund managers, our results indicate that
the presence of leaders with prior social and blended finance experiences reduces the
fund manager willingness to reach higher financial returns, implicitly elevating the social
impact objective. However, when looking at the likelihood of measuring the generated
social impact, the fund’s leaders experience in the finance, blended finance or social
sector results to produce no significant effect. Our findings provide empirical support
to previous theoretical works on impact investing pointing to the relevance of personal
skills as a driver of investment strategies and offer some evidence on the identification
of the best practices in this emerging field of investing
Do impact-leaders affect the strategy of social and environmental impact funds?
No full textThis article studies the relationship between the background of the social impact fund’s leadership team and the fund orientation towards financial performance and impact measurement. By analyzing a sample of 120 fund managers, our results indicate that the presence of leaders with prior social and blended finance experiences reduces the fund manager willingness to reach higher financial returns, implicitly elevating the social impact objective. However, when looking at the likelihood of measuring the generated social impact, the fund’s leaders experience in the finance, blended finance or social sector results to produce no significant effect. Our findings provide empirical support to previous theoretical works on impact investing pointing to the relevance of personal skills as a driver of investment strategies and offer some evidence on the identification of the best practices in this emerging field of investing
Fund managers acting as impact investors: Strategies, practices, and tensions
Full text linkUsing a multi case-study analysis, we shed light on the strategies, practices, andtensions of fund managers acting as impact investors. Results show that while somefund managers experience tension between the social and financial aspects of spe-cific, although relevant, components of the business model, other fund managersexperience challenges throughout the business model. The governance componentemerges as the most relevant issue and this may help explain why impact washing isa key topic in the impact investing discussion. Relevant implications for practitionersand policy makers are also discussed
When do women on board of directors reduce bank risk?
Full text linkPurpose: This study aims to examine the relationship between female directors and bank risk. In particular, whether such a relationship varies across sound or unsound banks and with or without a critical mass of female directors is tested. Design/methodology/approach: Using a sample of 215 listed banks from 40 countries over the period 2008–2016, this study carries out panel data analyses and tests all the model specifications on four different measures of risk (common equity ratio, leverage, NPLs ratio and price volatility). Findings: The findings show that increasing the number of female directors does not reduce bank risk when banks are unsound. When banks are sound, female directors have a significant and positive role in reducing risk, only until reaching a critical mass of women. Practical implications: This study provides useful corporate governance indications for policymakers and practitioners. Advantages of gender diversity on boards are recognized especially in sound banks, but increasing the number of women directors beyond the critical mass may not lead to lower risk. In fact, ethical or legal pressures aimed at increasing gender diversity on boards (i.e. soft or hard gender quotas) may cause undesired effects on bank risk, especially if female directors are not chosen on merit and skills. Moreover, gender-balanced boards, namely, with a “dual critical mass,” seem to assure more effective decision-making processes. Originality/value: This study provides empirical evidence on female board members and risk minimization, differentiating between sound or unsound banks. Furthermore, this study contributes to the literature on the critical mass of women on the board of directors by testing this theory for these two categories of banks. © 2020, Emerald Publishing Limited
Family firms as prominent investment organizations of social finance: an empirical analysis of U.S. family foundations
No full textThis chapter suggests including family firms among the leading investors of the social finance market. Although social finance literature has largely overlooked them, we argue that large family firms possess the financial (e.g., profitability, capital structure, liquidity) and non-financial (e.g., continuity, community, connections, and command) characteristics allowing them to generate meaningful societal impact. To support our view, we examined 46 U.S. family foundations and 478 social finance transactions taking place from 2002 to 2019. This pilot study indicates that family firms, through their family foundations, are already playing a significant role in the social finance arena by providing social entrepreneurs with equity and debt capital as well as grants
Microfinance investment vehicles: how far are they from OECD social impact investment definition?
No full textSocial Impact Investment (SII) is high on the international agenda. Nevertheless, only recently have some international organizations tried to clearly define the boundaries of SIIs. Existing data shows that microfinance is one of the major developed branches. The aim of this study is to investigate if microfinance investment vehicles (MIVs), listed on the market and identified as “impact investment” through registration in the Global Impact Investment Network (GIIN) or through the publication of an impact report, are compliant with the new definition of SIIs suggested by the Organization for Economic Cooperation and Development (OECD, Social impact investment. Building the evidence base. Paris. Available at: http://www.oecd.org/sti/ind/social-impact-investment.pdf. Accessed 18 Feb 2015). The methodology applied is content analysis. Findings demonstrate that there is still much to do in order to “mind the gap” between MIVs management approach and the OECD definition
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