Green and socially responsible finance: past, present and future

Dervi, Umaira Danish; Khan, Ashraf; Saba, Irum; Hassan, M. Kabir; Paltrinieri, Andrea

doi:10.1108/mf-11-2021-0561

Cited by 20 publications

(12 citation statements)

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“…To source relevant literature for our study, we rely on the WoS Core Collection database due to its wide usage in previous bibliometric reviews (Dervi et al, 2022;Khan et al, 2020). However, we leverage this database mainly due to the following reasons :( 1) it has a vast coverage of quality publications from 1989 till date (2) it provides user-friendly features related to sorting and exporting academic records which is essential for performing bibliometric studies (3) it possesses relatively higher number of peer-reviewed articles on sustainable investments than other sources like Scopus or Google Scholar (Dervi et al, 2022).…”

Section: Research Methodology 21 Literature Searchmentioning

confidence: 99%

“…This study differentiates itself from the previous bibliometric reviews (Beisenbina et al. , 2022; Dervi et al. , 2022; Fabregat-Aibar et al.…”

Section: Introductionmentioning

confidence: 91%

“…This study differentiates itself from the previous bibliometric reviews (Beisenbina et al, 2022;Dervi et al, 2022;Fabregat-Aibar et al, 2019;Losse and Geissdoerfer, 2021) by inculcating all the existing perspectives on sustainable investments and covering a broader spectrum of research on SI. For instance, the earlier bibliometric reviews did not include "environmental investments" and "green investments" as keywords while searching for relevant records.…”

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confidence: 99%

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Sustainable investments: a scientometric review and research agenda

Singhania,

Bhan,

Chadha

2023

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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.

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Section: Research Methodology 21 Literature Searchmentioning

confidence: 99%

“…This study differentiates itself from the previous bibliometric reviews (Beisenbina et al. , 2022; Dervi et al. , 2022; Fabregat-Aibar et al.…”

Section: Introductionmentioning

confidence: 91%

mentioning

confidence: 99%

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Sustainable investments: a scientometric review and research agenda

Singhania,

Bhan,

Chadha

2023

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“…Three papers in the special issue provide an overview of the evolving literature related to different strands of sustainability, ESG measures and SRI (Socially Responsible Investing). McBride and Dastan (2022) explore the effect of the development of artificial intelligence (AI) on the dynamics of SRI and CSR, whereas Dervi et al (2022) focus on a bibliometric analysis of the green finance literature. Lastly, Baid and Jayaraman (2022) examine the social component of ESG.…”

Section: Special Issue Papersmentioning

confidence: 99%

Guest editorial: Historical perspectives on corporate governance debate and introduction to the special issue on corporate governance and sustainability

Dandapani

Shahrokhi

2022

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PurposeThe purpose of this study is the development of an integrated framework between corporate governance and sustainability, based on the advancements within the field of contemporary governance leading to a renewed focus on sustainable development.Design/methodology/approachIn this paper, the authors provide succinct summary of the evolution of corporate governance over the past century from an historical perspective: starting with the early work of Berle and Means – which focuses on the legal separation of ownership and control – and the subsequent challenges within this framework – all the way to analyzing the major impact of Nobel Laureate Milton Freidman’s work on corporate goals and governance. The authors' approach identifies the key transformation of corporate goals and corporate goals' paradigm shift in progression and focus within corporate houses over time, including how these are approached in the present day by integrating the concept of primacy of all stakeholders. The authors relate this to contemporary developments in the Business Round table and the United Nations’ adoption of the 2030 Agenda for Sustainable Development Goals. The authors also identify specific corporate governance themes within global economic forums, as well as the critical interlinkages needed by all global corporations to achieve sustainable growth.FindingsThe primary objectives of the corporate governance themes adopted by global economic forums this decade are in the best interest of all stakeholders – including customers, employees, regulators, local communities, and shareholders. This applies both during periods of relative stability and during crises. A review of the good corporate governance relies on internal mechanisms such as the structure of a board and incentives for management, and on external mechanisms such as institutions that demand accountability. All these mechanisms are important as the mechanisms form the core of how (and for whom) corporations generate value. Ultimately, optimal corporate governance can help deliver both economic gains and societies that value all.Practical implicationsWith globalization, the public has higher expectations from corporate CEOs than in the past. Corporate leaders have the ultimate responsibility for creating an organizational culture that supports trust and ensures that corporate leaders' management and employees embody and act on the stated values and mission of their organization. Areas of increased social expectations that require the attention of boards of directors include diversity, transparency, equal opportunity, and eliminating all forms of harassment.Originality/valueThis study identifies a viable agenda for global corporations based on concurrent developments to achieve sustainable development and growth. The recent related research work is also presented.

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“…Green Investment is aiming at improving the environment through investments. (Dervi et al, 2022) One of the most remarkable milestones in the history of green investment is the launch of the first green bond in 2007 by the EIB (Europäische Investitionsbank, 2017), called…”

Section: Green Investmentmentioning

confidence: 99%

Ethical investment and returns: evidence and comparison study of the USA, Germany and China

Itzenga¹

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With 10% of worldwide funds being Ethical funds and Ethical Investing accounting for almost one-third of all professionally managed U.S. assets, Ethical Investment is one of the fastest-growing investment strategies. However, existing literature on its effects on investment returns is far from conclusive, partly because different definitions of ethical investment, different screening methods, varying assessments of ethical behaviour, varying time frames, differing return metrics, and studied single country were employed. Furthermore, the neglection of the effects of industry and partial neglection of roles of company size might contribute to the contradicting results reported in the literature. To address some of the problems, this research aims to start by building a comprehensive ethical score dataset for the USA, Germany and China, which enables comparison studies of these countries on the same footing. Industries and size effects on a firm’s ethical behaviour with respect to the Slack Resource Theory and the Small Company Bias are tested. This research employs multiple multivariate OLS-regressions, Score analysis, Sensitivity analyses, Kruskal-Wallis test and carries out a comparison study on the USA, Germany and China. The findings show that over time there is generally an increase in ethical behaviour measured by the Ethical Scoring System. However, ethical behaviour also varies among countries. The Sensitivity Analysis, the OLS-regressions as well as the Kruskal-Wallis Test confirm significant differences between the countries and its implications on the impact of ethical behaviour on the financial performance. While the Sensitivity Analysis finds that in the USA, an increase in Ethical Score results in a decrease in return, Germany shows the opposite. China shows mixed results depending on the return metric. When looking at the results of the OLS-regressions, the results are mixed but show that the Ethical Score has largely no impact. Combining the Sensitivity Analysis results and the regression results, it appears that the Ethical Score is not insignificant itself as it has impact, as shown in the Sensitivity Analysis. However, when other variables are introduced, it appears that these other factors explain the company’s return better, making the Ethical Score less significant. Additionally, this study finds a varying impact on the return across industries confirming the neglected importance of this factor. The Consumer Staples and Energy industry show no impact of ethical behaviour on the return, while the Consumer Discretionary, Finance and Industrials Industry indicate that ethical behaviour is penalised while unethical behaviour is financially rewarded. The HealthCare, Information Technology, Telecommunication, and Utility industry mainly show that ethical behaviour is financially rewarded while unethical behaviour is penalised. However, these results are not valid in each of the three countries. They depend on the country and the return metric. Further, this thesis tests the roles of company size on their Ethical Behaviour. Two conflicting theories in literature are tested: The Slack Resource Theory and the Small Company Bias. This thesis uses four cross-sectional OLS-regressions and employs multiple size measurements, namely revenue, market capitalization, number of employees, and total assets. This thesis cannot establish conclusive evidence to confirm or reject either of these two theories as the results are equivocal and differ amongst size measurements and countries. This thesis contributes theoretically by developing an own definition of Ethical Investment, methodologically by developing a comprehensive Ethical Scoring System and applying multiple forms of analysis with multiple size and return metrics, and empirically by integrating country, industry and size as impact factors. The findings of this thesis contribute to the further understanding of the impact of ethical behaviour on financial performance based on a comprehensive self-created ethics scores dataset, comparing three major economies in the world and applying different ways of return measures. The findings provide rich implications to the investment industry when they attempt to construct a global Ethical investment portfolio and help retail investors to form better investment decisions.

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Green and socially responsible finance: past, present and future

Cited by 20 publications

References 101 publications

Sustainable investments: a scientometric review and research agenda

Sustainable investments: a scientometric review and research agenda

Guest editorial: Historical perspectives on corporate governance debate and introduction to the special issue on corporate governance and sustainability

Ethical investment and returns: evidence and comparison study of the USA, Germany and China

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