Strengthening impact integrity in investment decision-making for sustainable development

Azmat, Fara; Jain, Ameeta; Michaux, Fabienne

doi:10.1108/sampj-10-2020-0368

Cited by 9 publications

(10 citation statements)

References 28 publications

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“…The results obtained, firstly, clarified the specifics of investments in sustainable development noted in the works (Azmat et al 2021;Chen 2021;Staszkiewicz and Werner 2021). Our results also identified unique factors in financing social entrepreneurship for (1) increasing incentives for directing the financial resources into long-term investments, strengthening stability and increasing inclusiveness; (2) promoting the creation of "markets of tomorrow", especially in areas where public-private cooperation is required; (3) encouraging and expanding investment in research, innovation and inventions that can create new "markets of tomorrow"; (4) updating curricula and increasing investment in skills for work and the "markets of tomorrow".…”

Section: Discussionsupporting

confidence: 55%

“…Based on the specifics of investments in sustainable development, which is noted and emphasised in the works (Azmat et al 2021;Chen 2021;Staszkiewicz and Werner 2021), we offer Hypothesis 1: Hypothesis 1 (H1). The financial risks of social entrepreneurship differ from the standard financial risks of commercial entrepreneurship (receipt of credits, protection of minority investors, taxation, and solution to non-solvency).…”

Section: Theoretical Basis Literature Review and Gap Analysismentioning

confidence: 99%

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Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

Popkova

Sergi

2021

Risks

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The relevance of this study lies in the fact that financial risk is a serious obstacle to the development of social entrepreneurship, preventing the implementation of potential support for sustainable development goals in business. The purpose of this article is to clarify specific aspects of financing factors and financial risk related to social entrepreneurship in developing countries (in comparison with the standard financial risk related to commercial entrepreneurship) in order to analyze the influence of the financing factors of social entrepreneurship on sustainable development, as well as to determine the potential for the development of social entrepreneurship through financial risk management. To achieve this goal, this article uses the methodology of econometrics—dataset modelling of financial risk management in social entrepreneurship to achieve sustainable development in emerging economies. On the basis of the results of this study, firstly, it is substantiated that the financial risks entailed by social entrepreneurship differ from the standard financial risk present in commercial entrepreneurship. Specific factors of the financing of sustainable development in emerging economies are determined and, on the basis of this, financial risks specific to social entrepreneurship in emerging economies are identified as follows: (1) reduced stimulus to use financial resources in long-term investments, which disrupts the stability and decreases inclusion; (2) joint public–private investments and decreased investment in R&D; and (3) expanded investment in the skills required for jobs and “markets of tomorrow”. Secondly, a contradictory influence of financing factors on sustainable development is demonstrated. Thirdly, a large potential for the development of social entrepreneurship by means of financial risk management (maximum reduction) was identified. With the minimization of financial risk, social entrepreneurship would demonstrate substantial progress, with an increase of 99.61% (more than 50%) from 45.18 points to 90.18 points. A novel contribution of this paper to the extant literature consists of the specification of the essence and specifics of social entrepreneurship in emerging economies through the identification of financial risks and the provision of recommendations for their management.

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Section: Discussionsupporting

confidence: 55%

Section: Theoretical Basis Literature Review and Gap Analysismentioning

confidence: 99%

Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

Popkova

Sergi

2021

Risks

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“…Paranque and Revelli (2019), in contrast, focus on the ethicality of green bonds, theorizing the steps that are needed to span green bond issuance and impact value. To limit the unethical behavior connected with the impact washing phenomenon, Azmat et al (2021) suggest that standardized management practices (such as a common language and specific although flexible impact measures) and a mixture of accountability mechanisms (such as governance and external validation) are needed to support the growth of the impact investing strategies, alongside the other sustainable strategies, by safeguarding the integrity of the entire industry.…”

Section: Relevant Themesmentioning

confidence: 99%

Past, present and future of impact investing and closely related financial vehicles: a literature review

Chiappini,

Marinelli,

Jalal

et al. 2023

SAMPJ

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Purpose The purpose of this study is to analyze the intersection of research on impact investing and its closely related financial vehicles. Design/methodology/approach The paper explores 196 articles collected from Scopus and Web of Science using bibliometric and content analysis methodologies. Findings Despite a growing academic interest in impact investing, scholars generally investigate impact investing as a social phenomenon, using the specific financial mechanism of social impact bonds. This perspective potentially deflates the complex nature of impact investing, which actually combines both social and financial targets and uses a plurality of financial vehicles to reach its goals. Practical implications The emerging themes identified will provide both academics and practitioners additional tools to further the debate on impact investing and the understanding of its potential and limits according to the different financial forms it takes. This review should pave the way for a discussion about the boundaries of the social impact sector itself. Social implications Despite the strong international commitment toward impact investing, tensions still exist. A comprehensive overview on the relevant aspects not yet thoroughly investigated will foster the growth of impact investments. Originality/value To the best of the authors’ knowledge, this is the first holistic overview of impact investing, that jointly examines both literature on impact investing and literature on the correlated financial products used in the industry. The result is a comprehensive report of what is known about impact investing in its different financial forms, opening up new pathways for future studies.

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“…Recent studies have begun to establish an interesting link between the pursuit of energy security and energy stock performance (Hassan et al , 2022; Iyke et al , 2021). The current study contributes to this emerging research area which is directly connected to the United Nations (UN) sustainable development goals (SDGs) #7, affordable and clean energy and #13, climate action (Azmat et al , 2022; Ordonez-Ponce, 2021). The paper focuses on the aspect of the area concerned with the link between the pursuit of energy security and the degree of risk associated with clean energy stocks.…”

Section: Introductionmentioning

confidence: 99%

External energy security elements and the riskiness of clean energy stocks: a volatility analysis

Hassan¹

2023

SAMPJ

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Purpose Clean energy stocks are exhibiting signs of increasing volatility reflecting the varied and conflicting strategies employed by nations to pursue energy security objectives. In this regard, this paper aims to examine the response of NASDAQ clean energy stock returns volatility to the influences of external energy security elements including oil price, natural gas price, coal price, carbon price and green information technology stock price. Design/methodology/approach The paper uses symmetric and asymmetric generalised autoregressive conditional heteroskedasticity models (GARCH and TGARCH, respectively), which incorporate external energy security elements as exogenous variables, to estimate volatility models for clean energy stock returns. Findings Although, prices of oil, coal and natural gas are negatively associated with NASDAQ clean energy returns volatility, only the effect of natural gas price is significant. While carbon price affects NASDAQ clean energy returns volatility positively, green information technology price affects the volatility negatively. These results are robust to exponential GARCH and lead-and-lag robust ordinary least-squares as alternative estimation methods. Research limitations/implications The study lumps the effects of all other external and internal factors, including internal energy security elements, in the autoregressive conditional heteroscedasticity (ARCH) term to predict NASDAQ clean energy returns conditional variance. GARCH method does not disentangle individual roles of the factors captured in the ARCH term in predicting volatility. Practical implications Results documented imply that natural gas appears a closer substitute for renewable energy sources than crude oil and coal, such that its price rise is perceived as good news in the NASDAQ clean energy financial market, while a fall is considered bad news. Furthermore, both an increase in carbon price and a decrease in green information technology stock performance are perceived as negative shocks. Social implications In assessing risks associated with clean energy stocks, investors and fund managers should carefully consider the effects of external energy security elements. Originality/value To the best of the author’s knowledge, the paper is the first to identify external energy security elements and examine their effects on clean energy stock volatility.

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Strengthening impact integrity in investment decision-making for sustainable development

Cited by 9 publications

References 28 publications

Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

Past, present and future of impact investing and closely related financial vehicles: a literature review

External energy security elements and the riskiness of clean energy stocks: a volatility analysis

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