(1) Social Impact Bonds (SIBs) foster the relationships between public and private sectors while adding value to new forms of investment that are closely linked to Socially Responsible Investments (SRIs). In this context, Sustainable Developments Goals (SDGs) aim to strengthen global partnerships in order to achieve the 2030 Agenda. Sustainable banking should consider its role in both new responsible investment products and the 2030 Agenda. This study aims to: (i) estimate the ROI of SIBS, (ii) define a financial formulation and a measurement system, and (iii) explain the relationship between SIBs and SDGs. (2) This research analyzes SIBs from an SDG approach, and proposes a valuation model based on a financial options valuation methodology that clarifies the financial value of the world’s first SIB (Peterborough Prison, UK). (3) Findings suggest that investors expect to have a negative return of 16.48%, and that this expected loss may be compensated for by the short- and long-term positive impact of an intervention in society. (4) It is shown that SIBs provide an opportunity to reach SDG 17 and improve sustainable investment portfolios, while providing an opportunity to strengthen a company’s Corporate Social Responsibility policy and its corporate reputation.

Financial innovation by means of Fintech firms is one of the more disruptive business model innovations from the latest years. Specifically, in the financial advisor sector, worldwide assets under management of artificial intelligence (AI)-based investment firms, or robo-advisors, currently amount to US$975.5 B. Since 2008, robo-advisors have evolved from passive advising to active data-driven investment management, requiring AI models capable of predicting financial asset prices on time to switch positions. In this research, an artificial neural network modelling framework is specifically designed to be used as an active data-driven robo-advisor due to its ability to forecast with today’s copper prices five days ahead of changes in prices using input data that can be fed automatically in the model. The model, tested using data of the two periods with a higher volatility of the returns of the recent history of copper prices (May 2006 to September 2008 and September 2008 to September 2010) showed that the method is capable of predicting in-sample and out-of-sample prices and consequently changes in prices with high levels of accuracy. Additionally, with a 24-day window of out-of-sample data, a trading simulation exercise was performed, consisting of staying long if the model predicts a rise in price or switching to a short position if the model predicts a decrease in price, and comparing the results with the passive strategies, buy and hold or sell and hold. The results obtained seem promising in terms of both statistical and trading metrics. Our contribution is twofold: 1) we propose a set of input variables based on financial theory that can be collected and fed automatically by the algorithm. 2) We generate predictions five days in advance that can be used to reposition the portfolio in active investment strategies.

IntroductionThe Tax Cuts and Jobs Act (TCJA) of 2017 had a significant impact on taxpayers. It introduced several changes in the tax returns of businesses and individuals. This article reports results of investigating the TCJA changes and its effects on corporate decision-making via a survey, analysis of Internal Revenue Service (IRS) data and review of a sample of corporate reports. The research results indicated that the IRS needs to provide more clarification. An objective of the TCJA was to stimulate investments, returns and salaries. Hendricks and Hanlon (2019) indicate that "businesses have not massively increased investment; in fact, growth in nonresidential fixed investment has been on a downward trend since the beginning of 2018, just after the TCJA's passage." Before the TCJA, interest rates had been low for 10 years, corporate profits were hitting all-time highs, and bank accounts were bulging with cash. This had not had an impact on investments. Hendricks and Hanlon (2019) said that the theory of a reduction in the corporate tax rate would have a major impact on investments was doubtful. "The simplest reason that cutting corporate taxes will not boost American productivity or wages is that the past history corporate tax cuts in the United States shows no such relationship" (Bivens & Blair, 2018).This article provides a perspective on the idea that corporations reinvest a large percentage of their profits. "With regard to the corporate investment claim, there is no serious evidence that the TCJA spurred a notable pickup in business investment" (Bivens & Blair, 2018). Successful C-Corporation shareholders might consider taking some steps to take advantage of the new relatively low federal income tax rates on dividends and long-term capital gains. Paying corporate dividends when tax rates are still low is a potential tax saving technique. Tax credits to large corporations could generate large dividends.Other significant changes to the TCJA are that it increased the deduction for depreciation in the first year of service for a qualified property from 50% to 100%. From an ethical point of view, this article considered how this would affect small entities and their employees. "Businesses need to consider the expected business tax rates in the future years of the property's life" (Rinier, 2018).To mitigate excess indebtedness, the TCJA limits interest deductions to 30% of adjusted gross income (AGI). This only applies to entities with more than $25 million in their annual income. Does this offer an opportunity for small businesses? While it is expected that the answer to this question is no, it was analyzed from various perspectives. Another issue addressed for this article was related to the elimination of the 50% deduction for entertainment or recreation expenses (IRS, 2020, September 30). Accounting systems must adjust the processes to record meal expenses and entertainment expenses separately. In previous years, both concepts allowed a 50% tax deduction and, generally were registered in the same account....

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