ESG Integration Treats Ethics as Risk, but Whose Ethics and Whose Risk? Responsible Investment in the Context of Precarity and Risk-Shifting

2019 ◽  
Vol 46 (4-5) ◽  
pp. 573-587 ◽  
Author(s):  
Claire Parfitt
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Political Action ◽  
Investment Decision ◽  
Risk Shifting ◽  
Responsible Investment ◽  
Investment Decision Making ◽  
The Social ◽  
The Relationship ◽  
Opening Up

This article contributes to scholarly debates about the relationship between precarity and financialization by applying Randy Martin’s concept of the social derivative to the phenomenon of responsible investment. It explores how responsible investment emerges as an avenue for political action in the context of disintermediated governance. Analyzing one strategy of responsible investment, the integration of environmental, social, and governance (ESG) risks into investment decision making, through the frame of the social derivative, the article argues that a derivative logic of ethics underpins ESG risk management. This complicates contemporary understandings of precarity as risk-shifting, because ESG integration creates connections between unlikely parties, opening up new forms and directions for political contest through finance. However, the article reveals that the contingent and profit-driven ethics on which ESG risk management is based establishes a narrow foundation on which these contests take place.

scholarly journals Socially responsible investment: A view from the social rating agencies of Vigeo-Eiris and MSCI ESG STATS

2018 ◽  
Vol 4 (1) ◽  
pp. 27-40 ◽  
Author(s):  
J. A. González Bueno ◽  
J. Núñez Rodríguez
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Socially Responsible Investment ◽  
Decision Making Process ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Rating Agencies ◽  
Investment Decision Making ◽  
The Social ◽  
Social Rating

The concern of investors for environmental, social and corporate governance issues is giving rise to certain changes in the investment decision-making process. Given this situation, socially responsible investment has received the attention of practitioners and academics, and has reached a significant level of development in financial community in recent years. The main goal of this paper is to examine social rating methodologies developed by the two most renowned agencies worldwide: MSCI ESG STATS and Vigeo-Eiris.

scholarly journals The Relationship between Accounting Information Systems and Making Investment Decisions in the Industrial Companies Listed in the Saudi Stock Market

2017 ◽  
Vol 10 (6) ◽  
pp. 199 ◽  
Author(s):  
Qasim Alawaqleh ◽  
Mahmoud Al-Sohaimat
Keyword(s):  
Decision Making ◽  
Information Systems ◽  
Investment Decision ◽  
Accounting Information ◽  
Kingdom Of Saudi Arabia ◽  
Policy Makers ◽  
Accounting Information Systems ◽  
Industrial Companies ◽  
Investment Decision Making ◽  
The Relationship

The study aimed to measure the relationship between the investment decision-making in the industrial companies listed in the Saudi Stock Market with the (IVs) characteristics of the accounting information systems (appropriateness and reliability, comparability and understanding), and renovation and maintenance of the hardware and software. The problem in the Kingdom of Saudi Arabia is that the government depends on oil revenues more than on attracting investments, therefore, the importance of this study is constituted by the provision of critical recommendations to policy makers in the Kingdom of Saudi Arabia in order to overcome this issue and improve the investments. In order to achieve the objectives of this study, questionnaires were administered to 194 people representing the study population; a multiple regression (standard regression) was also used to test the study hypotheses. In general, all variables were positively significantly related with the investment decision-making.The findings of this study also showed that the independent variables explained more than 65% of the variance in investment decision-making. The Saudi government and policy makers should issue new regulations to increase the interest in accounting information systems in order to attract the investment. In relation to the practical and theoretical contribution, this study used new variables in the new model, such as renovation and maintenance of the hardware and software. Furthermore, practical contribution will help policy makers and the Saudi government to advance in this area and implement new policies for investors in order to protect the economy and the society stability due to the war in Yemen and Syria.

Device Configuration and Investment Decision-Making of Fast Charging Station

2013 ◽  
Vol 291-294 ◽  
pp. 866-871
Author(s):  
Wen Xia Liu ◽  
Liu Liu ◽  
Shang Yuan Li ◽  
Bing Lu
Keyword(s):  
Decision Making ◽  
Queuing Theory ◽  
Investment Decision ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Charging Station ◽  
Investment Decision Making ◽  
Fast Charging ◽  
Optimized Model ◽  
The Relationship

This paper describe an approach to optimize the economy of electric vehicles’fast charging station investment with service satisfaction be constraints. An optimized model is proposed to study the relationship between the number of charge devices and economy of investment, which is based on the internal rate of return. Some service index like the queuing time and queuing length based on queuing theory are calculated to make sure the result reasonable and attainable for both investors and customers. At last, an example based on a conventional traffic flow and service intensity is simulated on Matlab to prove the effectiveness of the model.

scholarly journals Factors Affecting Investment Decision Making: Moderating Role of Investors Characteristics

2019 ◽  
pp. 1311-1320
Author(s):  
Salam A. Alshamy
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Investment Decision ◽  
Financial Education ◽  
Financial Information ◽  
Factors Affecting ◽  
Investment Decision Making ◽  
Relationship Of ◽  
The Relationship

The current study aimed to investigate the factors affecting investment decision making. Moreover, the moderating effects of age, gender, and financial information were also tested. The study utilized a quantitative research design for that the data was collected using a structured questionnaire. The questionnaire was sent to 570 individuals out of that 374 questionnaires were returned however 372 of the questionnaires were found to be useable. The study framework had 6 constructs namely heuristics, financial information, corporate governance, risk aversion, and experience were independent variables while investment decision making was dependent variable while age, gender and financial education were moderating variables. All the latent construct were measured using multi items based on 5 point Likert scales from 1 strongly disagree to 5 strongly disagree. The results found the Heuristics, Risk Aversion, Financial Information, Corporate Governance and Experience to be significant factors affecting the investment decision making. Moreover, the moderating effect of gender was found to be significant in the relationship of (financial information, corporate governance, and experience) and investment decision making. The moderating effect of age was found to be significant in the relationship of (Heuristics, Corporate Governance, and Experience) and investment decision making while the moderating role of financial education was found to be significant in the relationship of (financial information, corporte governance and experience) and investment decision making.

scholarly journals The Impact of ESG Factors on Asset Returns: Empirical Research

2021 ◽  
Vol 25 (4) ◽  
pp. 82-97
Author(s):  
O. V. Efimova ◽  
M. A. Volkov ◽  
D. A. Koroleva
Keyword(s):  
Quantitative Methods ◽  
Investment Decision ◽  
Investment Strategies ◽  
Scientific Publications ◽  
Responsible Investment ◽  
The Sustainable Development ◽  
Investment Decision Making ◽  
Investment Portfolios ◽  
The Impact ◽  
The Relationship

The subject of the research is the assessment of Investment decision-making efficiency considering the sustainable development requirements. The article aims to identify the relationship between environmental, social and governance (ESG) performance and market returns for investors and the reasons for it. The relevance of the paper is determined by the need to develop research in the field of ESG integration and evaluation of the portfolio investment effectiveness in the context of responsible investment practices popularity. Scientific novelty: the study develops the theory of ESG integration and allows the authors to conclude that ESG commitment is a driver of market profitability for investors. The authors apply methods such as theoretical analysis of scientific publications (analysis, synthesis, generalisation) and quantitative methods, including statistical data analysis, regression analysis, financial modelling. The research base is scientific works of domestic and foreign authors, analytical reports of rating agencies, ESG funds, historical stock market data on companies analysed in the course of this study. All the information used in this study is publicly available or provided by the Bloomberg database. In the course of the study, authors form model portfolios of ESG-oriented and ESG-neutral companies shares and perform a comparative analysis of their fundamental indicators and financial returns. The authors conclude that the portfolio of ESG-oriented companies demonstrates profitability no lower than the portfolio of ESG-neutral companies, considering the risks. At the same time, the values of the fundamental indicators of ESG-oriented companies are inferior to the values of ESG-neutral companies. The relationship between the degree of a company’s ESG compliance and its investment attractiveness is due, among other things, to non-financial value drivers. The authors recommend integrating ESG into the analysis of investment portfolios, significant for the development of investment strategies.

Impact of socio-psychological factors on investment decisions: The mediating role of behavioral biases

2020 ◽  
Author(s):  
Sadia Jabeen ◽  
Syed Zulfiqar Ali Shah ◽  
Naheed Sultana ◽  
Altamash Khan
Keyword(s):  
Decision Making ◽  
Social Interaction ◽  
Loss Aversion ◽  
Investment Decision ◽  
Equation Modeling ◽  
Behavioral Biases ◽  
Mediating Role ◽  
Investment Decision Making ◽  
The Relationship

Unlike previous studies that examine the effect of behavioral biases on investor decision-making, this study explores the root causes of behavioral biases and examines the mediating role of behavioral biases in the relationship between different types of emotions and investment decision-making. The cognitive theory of depression, attentional control theory, and prospect theory together provide the foundation and anticipate that stress, depression, anxiety, and social interaction are the major sources of cognitive mistakes that,in turn, affect investment decision-making. Model testing relies upon the data collected from 252stock investors trading in different stock exchanges of Pakistan; in order to test the hypothesized relationship, structural equation modeling has been used. Depression is a major source of loss aversion bias. Anxiety is a strong source of herding. Stress is a major source of representative bias.Social interaction is a root cause of overconfidence. Loss aversion bias, herding, and overconfidence fully mediate the relationship between depression, anxiety, social interaction, and investor decision; however, anxiety has the strongest impact on investor decision via herding bias, while stress has both insignificant direct and indirect effect on investment decision-making. Keywords: Sources of biases, self-efficacy, behavioral pattern, investment decision.

Strengthening impact integrity in investment decision-making for sustainable development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fara Azmat ◽  
Ameeta Jain ◽  
Fabienne Michaux
Keyword(s):  
Decision Making ◽  
Sustainable Development ◽  
Management Practices ◽  
Investment Decision ◽  
Investment Strategies ◽  
Content Type ◽  
Responsible Investment ◽  
The Sustainable Development ◽  
Investment Decision Making ◽  
Development Outcomes

Purpose This paper aims to focus on impact integrity in investment decision-making – an under-researched yet important topic – as a means for optimising investor contributions to sustainable development outcomes, including achieving the sustainable development goals (SDGs). Design/methodology/approach This conceptual paper adopts a two-step approach. First, this paper reviews existing “responsible” investment strategies and products used in practice and highlight their shortcomings in terms of optimising sustainable development outcomes. Second, drawing from the minimal standards theory, this study explores how emerging impact management practices may strengthen impact integrity in investment decision-making and mitigate shortcomings in existing “responsible” investment approaches to increase their contribution to sustainable development outcomes. Findings Current “responsible” investment approaches often do not optimise sustainable development outcomes and may facilitate “impact washing”. The theoretically grounded framework demonstrates standardised impact management practices based on a bounded flexibility approach – adaptable to different contexts within limits and assessed by skilled analysts – along with incorporating shared language and conventions supported by appropriate accountability mechanisms that can be used to mitigate shortcomings in current “responsible” investment approaches. The authors further propose accountability mechanisms to systematically involve stakeholders (including rightsholders) in decisions that impact them with effective grievance and reparation mechanisms. Such an approach, the authors argue will strengthen impact integrity and the capacity of investments to optimise contributions to sustainable development outcomes. Practical implications The findings have implications for the ability of investment markets to optimise their contributions to sustainable development and the SDGs. Social implications By highlighting shortcomings in current “responsible” investment approaches and focussing on strengthening impact integrity in investment decision-making through standardised impact management practices, the findings enhance the capacity of investment markets to contribute positively to sustainable development and the SDGs. Originality/value Despite its importance, impact integrity in investment decision-making is severely under-researched with little academic attention. This paper fills this void.

Research on the Relationship Between Venture Capitalists’ Trust in Entrepreneur and Their Investment Behaviors

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Sulei Li ◽  
Hongtao Yang
Keyword(s):  
Decision Making ◽  
Positive Impact ◽  
Investment Decision ◽  
Psychological State ◽  
Investment Behavior ◽  
Venture Capitalists ◽  
Investment Decision Making ◽  
Risk Appetite ◽  
Key Factor ◽  
The Relationship

AbstractVenture capitalists’ trust in entrepreneurs and their investment behaviors does not interact directly; Trust is a psychological state rather than static and stable phenomena. The relationship is affected by multiple factors. This study aims to develop a better understanding of the complex relationship and to show the degree of influence among factors, and to reveal “The Bewilderment of Decision-making” of VC. Based on SEM, this paper analyzes the relationship between the factors: the influencing factors at the initial stage of trust, trust, investor risk appetite, entrepreneurs’ behaviors, capitalists’ decision-making Behaviors, capitalists’ post-investment Behaviors. Our qualitative analysis is based on data by issuing 323 questionnaire surveys of 104 Chinese venture capital firms which are divided into different regions by Global Entrepreneurship Monitor (GEM). By analyzing various behaviors, we find that entrepreneurs’ behavior is a key factor in this relationship. Several factors studied earlier have a positive impact on the capitalist’s pre-investment decision-making behavior, but no significant impact on post-investment behavior. These results include trust and investor risk appetite. Through interviews, it was found that the capitalist’s post-investment behavior was related to the capitalist’s ability, resources, management mechanism and other factors.

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