Private ethical fund investors across countries and time: a survey-based review

2015 ◽  
Vol 7 (4) ◽  
pp. 379-411 ◽  
Author(s):  
Anett Wins ◽  
Bernhard Zwergel
Keyword(s):  
Keyword Search ◽  
Relevant Literature ◽  
Future Research ◽  
Socially Responsible ◽  
Screening Criteria ◽  
Content Type ◽  
Responsible Investment ◽  
Private Investors ◽  
Ethical Funds ◽  
Fund Portfolio

Purpose – This paper aims to provide an overview of the literature to point out similarities and differences among private ethical investors across countries and time. Over the past three decades, many surveys have been conducted to advance the understanding of the demographic characteristics, motivation and morals of private ethical investors across countries and time. To date, the survey-based evidence on private investors into ethical funds is geographically rather segmented, and the research questions are fairly diverse. This permits only very temporally or regionally selective conclusions. Thereby, the authors identify interesting topics for future research. Design/methodology/approach – To identify the relevant literature for our review, the authors carried out a structured Boolean keyword search using major library services and databases. Findings – When questions about negative screening criteria are presented in a direct investment context, the consensus of private ethical investors “worldwide” (on average) is that social screening issues are most important, followed by ecological and moral topics. The percentage of ethical funds in the fund portfolio of the average private ethical investor in Europe seems to increase when the investor exhibits high degrees of pro-social attitudes and perceived consumer effectiveness. European private ethical investors are of the opinion that ethical funds perform worse but are less risky than conventional funds. Practical implications – The authors make suggestions on how investment companies should design their funds so that they can attract more socially responsible investors. Originality/value – The paper is of particular value because it focuses on private investors in the fast growing retail market of socially responsible investment funds.

Distance bias of socially responsible investment

2018 ◽  
Vol 14 (1) ◽  
pp. 96-110 ◽  
Author(s):  
En Te Chen ◽  
Yunieta Anny Nainggolan
Keyword(s):  
Portfolio Choice ◽  
Distance Effect ◽  
Future Research ◽  
Home Equity ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investment ◽  
Local Bias ◽  
Socially Responsible Investments ◽  
Fund Portfolio

Purpose Despite the benefits of international diversification, the home equity bias phenomenon is well documented in the portfolio choice literature. The purpose of this paper is to investigate whether the same investment behavior applies to domestic socially responsible investments (SRIs) where ethical screenings should be the selection criteria. Design/methodology/approach The authors apply the model by Coval and Moskowitz (1999), Grinblatt and Keloharju (2001) and Agarwal and Hauswald (2010) to uncover the effect of distance relative to screenings on SRI domestic portfolio choice. For the first time, the authors test the robustness of distance effect by using time bias, which is the travel time between the fund manager and the company’s headquarter. Findings The authors find that SRIs exhibit a strong preference for locally headquartered firms. After controlling for screening activity and other fund characteristics, the authors still find a strong distance bias in SRI fund portfolio decision-making. The authors find that this bias is mostly observed in SRI fund with social screening and that fund holding characteristics determine the propensity of fund managers to invest locally. The results suggest that the local bias puzzle exists in SRI. Research limitations/implications This study provides avenue for future research to examine whether the same local bias is found in SRI investment in other countries where they have different characteristics and behavior. Also, the evidence that local bias exists in SRI investment may need further analysis as to whether this is conflicting with the objectives of SRI, which focus more on ethical beliefs. Practical implications The results suggest that many local firms in the same city currently held by an SRI fund will not be held by this fund if it is in another city. The implications of the findings are that geographic proximity, along with ethical screenings, is an important dimension to how SRI fund invests. Originality/value This study is the first that examines local bias in SRI funds by using portfolio holding data.

Understanding ethical/unethical behavior in pharmaceutical companies: a literature review

2020 ◽  
Vol 14 (3) ◽  
pp. 367-394
Author(s):  
Geeta Marmat ◽  
Pooja Jain ◽  
P.N. Mishra
Keyword(s):  
Keyword Search ◽  
Ethical Issues ◽  
Relevant Literature ◽  
Theoretical Research ◽  
Future Research ◽  
Pharmaceutical Companies ◽  
Ethical Behaviour ◽  
Content Type ◽  
Unethical Behaviour ◽  
The Past

Purpose The purpose of this paper is to examine and review the available literature on ethical/unethical behaviour of pharmaceutical companies and to determine the ethical issues, unethical behaviour by analysing, summarising and categorising the factors related to these issues and unethical behaviour as were studied during the period 2008-2017. Essentially, this paper presents a critical analysis of the available literature on the subject and avenues for future research. Design/methodology/approach This paper adopted the systematic review approach to achieve the purpose of this study and examines the most relevant literature from online existing database sources, available between 2008-2017 by using the keyword search method. Then studies are categorised and summarised, using previously developed theories and frameworks, which have provided evidence to the universal consensus that ethical behavioural outcomes are dependent on the interplay of individual, organisational and environmental factors and have reordered to fulfil the purpose. Findings The findings identify that ethical issues related to pharmaceutical companies as were studied during the period 2008-2017 are drug pricing, drug safety and gift-giving. The organisational variables appeared to be the dominant cause of these ethical issues and unethical practices along with other determinants such as environmental and stakeholders. A large number of studies were in the western country context. Theoretical research has studied more comparatively empirical studies. Research limitations/implications This review provides insights for understanding the ethical issues, unethical behaviour and determinants related to these issues of pharmaceutical companies and provides insights where the literature is standing. This review only includes studies between 2008-2017, which are related to the ethical issue of pharmaceutical companies, therefore, the view is only of the past 10 years papers. This review provides gaps and insight into the source of ideas for future research and will help the researchers in guiding ethics-related information in the context of pharmaceutical companies. Practical implications This study will help the practitioners and policymakers in informing about the issues that required the urgent need to solve and will shed some light to focus and formulate strategies for successful competitive advantage. This study will help researchers who are seeking information related to ethics and ethical behaviour in pharmaceutical companies. Originality/value To the best of my knowledge, this review of understanding ethical/unethical behaviour in pharmaceutical companies of the past 10 years between 2008-2017 has not been done to date. This study is filling the gap by bringing all the information about ethics in pharmaceutical companies at one place, which works as an index of ethics-related study in this specific pharmaceutical company context.

Socially responsible investment sukuk (Islamic bond) development in Malaysia

2020 ◽  
Vol 12 (4) ◽  
pp. 599-619
Author(s):  
Mahfuzur Rahman ◽  
Che Ruhana Isa ◽  
Ginanjar Dewandaru ◽  
Mohamed Hisham Hanifa ◽  
Nazreen T. Chowdhury ◽  
...  
Keyword(s):  
Sample Size ◽  
Small Sample Size ◽  
Socially Responsible Investment ◽  
Small Sample ◽  
Future Research ◽  
Large Sample Size ◽  
Structured Interviews ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investment

Purpose This study aims to explore the underlying issues related to the development of socially responsible investment (SRI) sukuk in Malaysia. It identifies factors attracting investors and issuers, as well as challenges for the development of SRI sukuk (Islamic bond) in Malaysia. Design/methodology/approach This study conducted semi-structured interviews to collect data from the institutional investors, SRI sukuk issuers and arrangers, as well as researchers. A total of 19 experts were approached in which 10 participated in the interview. The thematic analysis technique is used to report the findings. Findings This study uncovers that social contribution through business activities (i.e. investment in the education sector) is the key motivational drivers for the investors and issuers. Besides, investment risks, lack of performance measurement standards, high transaction costs, risks of return, shortage of enough Islamic bonds, investors’ confidence and lack of awareness are the major challenges for the development of SRI sukuk instruments. Research limitations/implications Due to the challenges in finding experts on this subject matter, this study was able to manage only 10 interviews from the participants, which is a small sample size. However, the findings of this study cannot be ignored. Future research should carry out with a large sample size (i.e. at least 30 interviews) to validate the current findings. Originality/value This study is among the pioneer in Malaysia, which explores the influencing factors of selecting Islamic bonds as an investment option. This paper provides some valuable implications for investors through discovering the challenges for the growth of SRI sukuk in Malaysia, which can also be applicable in a global setting.

Socially responsible investing: a review of the critical issues

2015 ◽  
Vol 41 (11) ◽  
pp. 1176-1201 ◽  
Author(s):  
Joan Junkus ◽  
Thomas D. Berry
Keyword(s):  
Mutual Funds ◽  
Firm Value ◽  
Socially Responsible Investing ◽  
Model Specification ◽  
Future Research ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investment ◽  
Definitive Answer ◽  
Responsible Investing

Purpose – The purpose of this paper is to provide a review of the most recent work in major finance journals on socially responsible investment (SRI). While SRI involves individual investors, firms, and investment managers, the authors concentrate primarily on the investment view. Design/methodology/approach – The authors briefly review the development of socially responsible investing (SRI) and the theoretical issues related to SRI and investment choice. This is followed by a review of the empirical results concerning firm value. The question of whether SR mutual funds and SR indexes differ in performance or other characteristics from their conventional counterparts is discussed next, and lastly the authors present suggestions for future research directions. Findings – Despite the large and extensive amount of empirical research published on SRI in recent years, the authors find no definitive answer to the question of SR actions for either the firm or the investor. For firms, evidence linking corporate social responsibility (CSR) rankings with higher value is mixed, and depends on the type of CSR behavior studied as well as the measures of firm performance used. The performance of SR mutual funds and indexes generally are not significantly different from conventional funds or indexes, but again these results are also highly dependent on model specification, time period, benchmark, and other characteristics of the study. Practical implications – The value of SR investing has not been definitely proved. This means, however, that there is room for further on this important topic. Originality/value – This paper synthesizes and presents the most recent research on SRI from a wide variety of refereed sources.

Sustainability-themed mutual funds: an empirical examination of risk and performance

2018 ◽  
Vol 19 (3) ◽  
pp. 247-261 ◽  
Author(s):  
Federica Ielasi ◽  
Monica Rossolini ◽  
Sara Limberti
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Investment Strategies ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investment ◽  
Fund Managers ◽  
And Performance ◽  
Sustainable And Responsible Investment ◽  
Ethical Funds

PurposeThis paper aims to analyze the portfolio characteristics and the performance measures of sustainability-themed mutual funds, compared to ethical mutual funds that implement different sustainable and responsible investment strategies.Design/methodology/approachThe study refers to a European sample of 106 ethical funds and 51 sustainability-themed funds. The monthly performance of each fund is downloaded from Bloomberg for the period from January 1996 to December 2015. By applying a Fama and French (1993) three-factor model, the authors overcome the limits of a capital asset pricing model (CAPM) based-single index model, to compare the performance of the two categories of funds.FindingsSustainability-themed funds do not differ significantly from ethical funds in terms of portfolio attributes, except for market capitalization, age and net asset value. Regarding performance measures, the results shows that sustainability-themed funds have a lower underperformance than ethical funds (as measured by Jensen’s alpha), whereas the samples do not differ in terms of market risk (as measured by Beta coefficient). The idiosyncratic risk of sustainability-themed funds is positively influenced by the specific portfolio strategies. The sustainability-themed funds show a higher concentration in the industrial sector and a lower exposure to financial sector than ethical funds; in terms of geographical strategy, they are more global and international oriented; they mainly focus on small caps and value stocks.Research limitations/implicationsThe different sustainable and responsible investment strategies can be applied simultaneously and in a growing number of possible combinations. Mutual fund managers can consider thematic approach as an efficient opportunity for reconciling financial performance and economic sustainability. It is demonstrated that sustainability-themed funds adopt a portfolio strategy significantly different from ethical funds and from the environmental, social and governance benchmarks. Mutual fund managers implement a thematic specialization without any negative impact on the funds returns compared to ethical funds; actually, with a proper diversified portfolio, they are able to reduce idiosyncratic risk.Originality/valueThe analysis is extremely innovative, especially for the thematic sample. During the past 15 years, literature about sustainable and responsible investment has been focused especially on the differences in terms of risk and performance between socially responsible and conventional funds. This paper, starting from the methodology applied in these studies, wants to compare two different types of socially responsible strategies, with a specific focus on sustainability-themed mutual funds, given their exponential growth in the past few years.

Ethical Finance: Trends and Emerging Issues for Research

Think India ◽  
2013 ◽  
Vol 16 (2) ◽  
pp. 01-18
Author(s):  
Hemlata Chelawat ◽  
I. V. Trivedi
Keyword(s):  
Investment Decision ◽  
Research Work ◽  
Future Research ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Investment Decision Making ◽  
Ethical Finance ◽  
Emerging Issues ◽  
Ethical Funds

The objective of this paper is to understand the manner in which research in ethical finance has evolved and development of literature in the field of ethical/ socially responsible investing has taken place, which would provide us directions for future research work in the area. Contributions of 108 research studies published in the area of ethical finance, over a time span of 15 years were analyzed using a framework that classified research in the area of ethical finance according to research agenda and data analysis framework. This points to the areas which lack in – depth research and are worthy of being explored in future research. The literature review reveals that research in ethical finance or socially responsible investment has been concentrated in a few areas. While some important areas like financial performance of ethical funds and indices have received adequate attention by researchers, there are several other areas which need focused research. Measurement of ESG performance, ESG criteria for selection of stocks for an ESG/ ethical investment portfolio, process of integration of ESG criteria into investment decision making and regulatory mechanisms that need to be evolved to promote adoption of ethical finance are some of the areas worthy of being explored in future research. The study also suggests that models using multi–decision criteria for portfolio selection could greatly improve the performance of an ethical portfolio.

Rational socially responsible investment

2014 ◽  
Vol 14 (5) ◽  
pp. 699-713 ◽  
Author(s):  
Benjamin Tobias Peylo
Keyword(s):  
Stock Market ◽  
Future Research ◽  
Optimization Approach ◽  
Literature Study ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investment ◽  
Depth Analysis ◽  
German Stock ◽  
Rational Investment

Purpose – The purpose of this paper is first to give an in-depth discussion of the criticism of socially responsible investment's (SRI) alleged incompatibility with the concept of rational investment constituting an inferiority to conventional investment so as to disprove unwarranted arguments and identify potential for improvement of SRI. The second objective is to propose a framework that places SRI and conventional investment on the same level of rationality. Methodology – The discussion is based on a literature study. The framework uses a previously published multidimensional optimization approach and embeds it into a new, integrated methodology for investment decisions in the presence of SRI objectives. The framework is empirically evaluated using historic stock market data. Findings – The main findings show that SRI is not necessarily less rational than conventional investment; it can be implemented in an equally stringent and clearly defined methodology. The empirical results prove that investors can pursue SRI objectives without sacrificing performance. Research limitations – Focus is on the German stock market; in the future, research will be expanded to cover international markets. Practical implications – The results may contribute to enhance the SRI methodology. Social implications – Investors may be encouraged to consider SRI, strengthening the concept of sustainability. Originality/value – In the literature, the question of SRI’s compatibility with rational investment has often been cited but seldom scrutinized. An in-depth analysis combined with a framework to exploit of the learnings has yet been missing.

scholarly journals Exploring the “relational” link between responsibility and social ontology

2019 ◽  
Vol 10 (1) ◽  
pp. 31-46
Author(s):  
Adalberto Arrigoni
Keyword(s):  
Stakeholder Management ◽  
Relevant Literature ◽  
Social Ontology ◽  
Collective Responsibility ◽  
Theoretical Work ◽  
Future Research ◽  
The Novel ◽  
Content Type ◽  
Responsible Investment ◽  
Key Aspects

PurposeThis study aims to point out and try to describe the (missing) link between “responsible practises” (e.g. CSR – corporate social responsibility) and social ontology. This critical gap in the literature may conceivably be a stumbling block to responsible business/political/societal action and its theoretical/empirical understanding and effectiveness; therefore, we can legitimately ask ourselves whether a social ontology-focused approach can be considered relevant to this field of study.Design/methodology/approachAs the role of social ontology has presumably been under-explored despite its foundational importance, a set of germane and adjoining themes has been identified, which can be possibly included in future research projects. An overview of relevant literature is provided, and further analysis and desk research can be drawn from the key notions identified.FindingsIt is argued that social ontology – especially the underlying debate in terms of shared agency, collective responsibility and collective intentionality – can be an innovative and promising perspective within business ethics studies. Potentially, CSR management and/or similar responsible practices can re-appraised in similar terms.Research limitations/implicationsThis study specifically focuses on some selected key aspects related to the ontological status of social collectives (e.g. groups and organisations), trying to recall the main trajectories/directions of the relevant arguments and debates. More empirical research/pilot case studies validating the approach presented here will be required.Practical implicationsBuilding on the findings of this study, new emergent research methodologies/theoretical tools will make it possible to explore not so much the ways “responsible” practises are defined (indeed, there seems to be a broad consensus about it), but rather how they are socially constructed, implemented and carried out.Social implicationsThis theoretical work can potentially facilitate a comprehensive inter-/multi-/pluri-disciplinary understanding of the novel links explored, namely, between responsibility, social ontology and the underlying longstanding philosophical issues.Originality/valueThe novel thematic approach outlined in this study can challenge and widen the mainstream approaches about CSR management, e.g. stakeholder management and engagement, social accounting and reporting, SRI (socially responsible investment).

Mainstreaming pre-manufactured offsite processes in construction – are we nearly there?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph Kwame Ofori-Kuragu ◽  
Robert Osei-Kyei
Keyword(s):  
Construction Industry ◽  
Relevant Literature ◽  
Future Research ◽  
Content Type ◽  
Technical Paper ◽  
Sustainable Systems ◽  
Technology Firms ◽  
Current State ◽  
Academic Publications ◽  
The Subject

Purpose The purpose of this paper is to explore the current state of popular modern methods of construction (MMC) and pre-manufactured construction in the construction industry and propose a framework for future implications for practice and future research. Design/methodology/approach This technical paper is based on a narrative review of the extant literature on the subject. First, the Scopus search engine was used to retrieve relevant papers on MMC, offsite and pre-manufactured construction. Second, institutional literature such as reports by industry professional and trade bodies, literature from leading technology firms and contractors with experience of MMC were extracted. These two strands of literature were synthesised and a comprehensive discussion on the topic was provided. Findings Results show that journal publications on MMC and pre-manufactured construction have increased in the past decade. The paper found significant advances in the development of premanufactured and offsite construction approaches with many benefits. Offsite and pre-manufactured construction are viable and sustainable systems currently suitable for wider adoption as the mainstream construction method. Research limitations/implications This technical paper based on an integrative review of relevant literature could have benefitted from interviews of professionals with experience of offsite and pre-manufacture techniques and from wider availability of current academic publications on the subject. Validation of the framework has not been undertaken. Originality/value Not much-published work has been undertaken on the current state of development globally and the viability of these construction approaches. This paper evaluates evidence from academic and industry sources to address this gap. A framework has been developed which can help the industry’s industrialisation drive.

Contrasting supply chain traceability and supply chain visibility: are they interchangeable?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vivek Roy
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Information Sharing ◽  
Design Methodology ◽  
Relevant Literature ◽  
Future Research ◽  
Critical Element ◽  
Effective Management ◽  
Chain Management ◽  
Content Type

PurposeSupply chain traceability and supply chain visibility have become a critical element for the effective management of contemporary complex supply chains. At their core is information sharing, which has been acknowledged as a key prerequisite for logistics and supply chain performance, but whose notional underpinnings have not been delineated fully, leading to interchangeable deployment of these terms. Addressing the shortcoming, this paper aims to establish a contrast between the two notions.Design/methodology/approachDrawing from systematic review protocols, a multi-disciplinary review scope is constructed wherein the synthesis is strategized to primarily channel implications for the scholarship of logistics and supply chain management. The review is aimed at addressing two research objectives: (1) how the notions of traceability and visibility in supply chain management develop contrast in terms of their thematic emphasis and (2) to attain an integrative understanding of the notional convergence and divergence between supply chain traceability and visibility for raising strategic recommendations.FindingsThe review outcomes help contrast both the convergence and the divergence between traceability and visibility in the supply chain environment, and the differentiated but fundamental role that information sharing plays within these notions to outline why they are not interchangeable.Originality/valueThe originality of the findings lies in the conceptual synthesis of the relevant literature from both technological and non-technological perspectives to ultimately draw logistics and supply chain management implications. The review also points out key strategic considerations to demarcate the notional boundaries of traceability and visibility in future research.

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