The Reasoning of a Responsible Investment Position in the Structure of the Stock Exchange Market

Abstract

Purpose: To substantiate the place and role of the responsible investment in the structure of the stock exchange market.
 Methods: Structure-functional in order to form an idea of the structure of the stock exchange market, determining the place and role of responsible investment elements in the stock market organization; systematic analysis to identify current trends and patterns in the functioning of the socially responsible investment segment by geographical regions of the world; statistical and graphical methods for quantitative and visual presentation of the results of the stock market sectors analysis, represented by responsible investment elements.
 Findings: The definition of «responsible investment» and «stock market» has been clarified; a number of subjects, objects and forms of responsible investment, which are elements of the stock market, are singled out and substantiated; the generalization of activities of stock exchanges in the field of responsible investing is carried out; the dynamics of stock market sector indicators, which are represented by elements of responsible investment, are analyzed; key reporting standards used by stock exchanges in disclosing ESG issues are analyzed.
 Theoretical Implications: A comprehensive assessment of the functioning of socially responsible investment segment as part of the stock market is carried out, the place and role of responsible investing in the stock market structure are substantiated, which creates a basis for the development of effective measures to increase the stock market efficiency of Ukraine and its transformation into an effective and stable source of investment resources.
 Future Research: The results can be used in the context of further study of the stock market transformation in Ukraine on the basis of a socially responsible trajectory and fractal analysis.
 Paper Type: Theoretical.
 
 The study was performed within the state budget research «Fractal model of the stock market transformation in Ukraine: socially responsible investment to achieve the Sustainable Development Goals» № 0121U100473.

Stock investment: Factors influencing stock exchange in banking sector

“…The risks and rewards associated with each investment opportunity (Loebiantoro et al 2021) are, on the other hand, unique to that investment opportunity. Some individuals believe that making an investment is a sensible move (Vorontsova et al 2021) Alternatively, some people view investments as "giving up a sum of money for a set period of time in order to receive so much cash flow over time, thereby reimbursing for the lost opportunity of possibilities and the anticipated decline in the value of invested money plus inflation, with the possibility of a new advantage realisable via future demand selection, (Khan, 2020)" while others view investments as "giving up a sum of money for a set period of time in order to receive more cash flow in (Wasara & Ganda, 2019). Based on the foregoing, it is reasonable to assert that the concept of investment differs greatly from the concept of saving, which comprises putting money aside "refraining from making future financial commitments in order to boost future consumption. "…”

“…Much of economic and financial theory is based on the assumption that individuals make rational investment decisions and take into account all relevant information during the decision-making process (Vorontsova et al 2021). According to Khan, (2020), asserted that there is evidence to show repeated patterns of irrationality, inconsistency, and incompetence in the way human beings arrive at decisions and choices when confronted with uncertainty.…”