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

2021 ◽  
Vol 29 (4) ◽  
pp. 232-240
Author(s):  
Anna Vorontsova ◽  
Alex Plastun ◽  
Hanna Filatova ◽  
Elena Kostenko ◽  
Eldar Dzhobava
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Socially Responsible Investment ◽  
Stock Exchanges ◽  
Exchange Market ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Market Transformation

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.

scholarly journals The Environmental, Social and Governance Aspects of Social Responsibility Indices – A Comparative Analysis of European SRI Indices

2018 ◽  
Vol 21 (3) ◽  
pp. 25-44
Author(s):  
Magdalena Mikołajek-Gocejna
Keyword(s):  
Comparative Analysis ◽  
Stock Exchange ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
National Initiatives ◽  
The Social ◽  
Social Environmental ◽  
Definition Of

An increasing number of investors want to invest their capital not only with profit but also responsibly, and they pay significant attention to the formula of socially responsible investing (SRI), which means that they consciously engage their funds in companies operating in accordance with CSR principles. An important influence on the development of CSR is the role of stock exchange indices on socially responsible companies. These indices can be considered specific tools for adapting this concept in practice, in particular in the field of socially responsible investment. This article provides a comparative analysis of the social, environmental and governance criteria underlying the definition of the composition of selected European SRI indices. The research will cover the following indices: the DJSI Europe Index, the FTSE4Good Europe 40, the FTSE4Good Europe 50, the EURO STOXX Sustainability 40 and the Solactive Sustainability Index Europe. This paper also intends to set an index reflecting the degree to which companies of certain European countries are represented in major European SRI indices. Consequently, global and national initiatives and ratings were excluded, as well as sector‑and industry‑specific initiatives and ratings. The proposed index is standardized by introducing the GDP of each country into the calculation formula as a way to a achieve comparable result. We believe that the proposed metric will reflect the state of the art in SRI and provide an overall picture of SRI practices across nations.

scholarly journals Sustainability of Leverage Levels in Response to Shocks in Equity Prices: Islamic Finance as a Socially Responsible Investment

2019 ◽  
Vol 11 (12) ◽  
pp. 3260 ◽  
Author(s):  
Hafezali Iqbal Hussain ◽  
Janusz Grabara ◽  
Mohd Shahril Ahmad Razimi ◽  
Saeed Pahlevan Sharif
Keyword(s):  
Stock Exchange ◽  
Global Scale ◽  
Socially Responsible Investment ◽  
Growth Potential ◽  
Institutional Setting ◽  
Socially Responsible ◽  
Equity Prices ◽  
Responsible Investment ◽  
Equity Values ◽  
The Relationship

This study looks at how firms react to shocks in equity prices based on a classification which arises from social pressures rather than the financial objective of maximizing shareholders’ wealth. In order to meet the objective of the study, a sample of Malaysian firms from the period of 2003 to 2018 was utilized to evaluate the relationship between market and book debt ratios based on a social distinction. The study is based on the theoretical expectation that managers are inclined to adjust book debt ratios to converge with market debt values which arise from changes in equity values over time. We introduce a unique institutional setting into the relationship which is readily observable in the Malaysian capital market given the existence of Shari’ah and non-Shari’ah compliant company classifications on the stock exchange (Bursa Malaysia), as screened by the Securities Commission. The classification forms the basis for distinguishing Socially Responsible Investment options for investors. The findings reveal the existence of asymmetries in how both categories of firms adjust towards shocks in equity prices. The findings document that both compliant and non-compliant firms decrease book debt ratios in line with increases in firms’ equity values. Compliant firms, on the other hand, are more likely to increase book debt ratios during periods of decreases in equity values. Non-compliant firms do not significantly alter book debt ratios during periods of declining equity prices. The findings indicate that whilst firms tend to decrease debt levels in the presence of future growth potential, the response is asymmetric during periods of suppression of share prices. Thus, the screening of compliant versus non-compliant firms allows investors to distinguish sustainable firms in the long run, which further allows diversification when holding socially responsible investment portfolios. Our conclusions have wide reaching implications on a global scale for the development of sustainable capital markets.

scholarly journals Orchestrating Governmental Corporate Social Responsibility Interventions through Financial Markets: The Case of French Socially Responsible Investment

2020 ◽  
Vol 30 (3) ◽  
pp. 288-334 ◽  
Author(s):  
Stéphanie Giamporcaro ◽  
Jean-Pascal Gond ◽  
Niamh O’Sullivan
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Markets ◽  
Socially Responsible Investment ◽  
Socially Responsible ◽  
Role Of Government ◽  
Responsible Investment ◽  
Corporate Social ◽  
Private Actors

ABSTRACTAlthough a growing stream of research investigates the role of government in corporate social responsibility (CSR), little is known about how governmental CSR interventions interact in financial markets. This article addresses this gap through a longitudinal study of the socially responsible investment (SRI) market in France. Building on the “CSR and government” and “regulative capitalism” literatures, we identify three modes of governmental CSR intervention—regulatory steering, delegated rowing, and microsteering—and show how they interact through the two mechanisms of layering (the accumulation of interventions) and catalyzing (the alignment of interventions). Our findings: 1) challenge the notion that, in the neoliberal order, governments are confined to steering market actors—leading and guiding their behavior—while private actors are in charge of rowing—providing products and services; 2) show how governmental CSR interventions interact and are orchestrated; and 3) provide evidence that governments can mobilize financial markets to promote CSR.

Socially Responsible Index: International Experiences and China’s Practices

2011 ◽  
Vol 361-363 ◽  
pp. 1740-1744
Author(s):  
Zhao Hui Li ◽  
Jun Feng Li
Keyword(s):  
Social Responsibility ◽  
Triple Bottom Line ◽  
Socially Responsible Investment ◽  
Social Awareness ◽  
Socially Responsible ◽  
Bottom Line ◽  
Responsible Investment ◽  
International Experiences ◽  
International Social

This paper focuses on the compiling and the role of the socially responsible index. Socially responsible investment originated from ethically investing teachings and developed on growing social awareness. Social responsibility indexes are products of the development of social responsibility investment. The Domini 400 Social Index, the Dow Jones Sustainability Indexes and the Calvert Social Index are typical cases of international social responsibility indexes. They are compiled on the base of consistency, flexibility and transparency and their component stocks are selected according to triple bottom line. Compared with international experiences, China’s social responsibility indexes have a shorter history and some problems.

scholarly journals Islamic Bonds (Sukuk) in Malaysia

ICR Journal ◽  
2015 ◽  
Vol 6 (4) ◽  
pp. 489-508
Author(s):  
Inam Ullah Khan
Keyword(s):  
Middle East ◽  
Social Impact ◽  
Socially Responsible Investment ◽  
Secondary Market ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Social Impact Bonds ◽  
Sustainable And Responsible Investment

This article introduces the various types of sukuk that exist in the Malaysian secondary market. The Malaysian sukuk market was initially debt-based which attracted criticism from the Shariah scholars from the Gulf and Middle East. However, the Malaysian sukuk market made a turn towards equity and ijarah sukuk and ventured into “green sukuk” or socially responsible investment (SRI) sukuk. To facilitate the financing of sustainable and responsible investment initiatives, the Securities Commission of Malaysia (SC) has launched the Sustainable and Responsible Investment (SRI) sukuk Framework in 2014. The introduction of the SRI sukuk framework is seen to be in line with the rising trend of “green bonds” and “social impact bonds” that have been introduced globally to facilitate and promote sustainable and responsible investing. The writer has presented different examples from both regions to show that the gap has been bridged. However, despite this convergence the author recommends a revisit of the controversial debt-based instruments by Malaysian Shariah scholars.  

A plea for a stronger role of non-financial impact in the socially responsible investment discourse

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joel Diener ◽  
Andre Habisch
Keyword(s):  
Action Plan ◽  
Socially Responsible Investment ◽  
Theory And Practice ◽  
Financial Impact ◽  
Business Practices ◽  
Fund Management ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investment

Purpose This paper aims to emphasize the importance and current deficits of non-financial impact (NFI) assessment of socially responsible investment (SRI) with reference to the action plan of the European Commission (EC) for a greener and cleaner economy. Design/methodology/approach The importance and current deficits of NFI assessment are evaluated theoretically and condensed to an equilibrated socially responsible investment (ESRI) perspective, based on a narrative literature review of highly ranked academic journals. Findings Due to a deficient exploration of NFI in theory and practice, the role of SRI funds for sustainability transition has not yet been adequately discussed. This has enabled a situation where a constantly rising market share of SRI has not led to similar sustainability achievements. This strongly contrasts with investors’ expectations, the self-portrayal of the sector and the goals of the EC’s action plan. As a solution, the developed ESRI perspective elevates NFI as a second cornerstone for theory and practice. ESRI, contrary to the EC, sets a primer on the role of SRI fund management for achieving sustainability goals. Originality/value This study reveals how SRI theory and practice neglect the importance of NFI. The presented ESRI perspective enables scholars to examine SRI practices more holistically through a new theoretical lens. One special focus is on the role of SRI fund management as a transmission mechanism to push portfolio companies’ business practices toward more sustainable behavior.

STOCK EXCHANGE INDICES AS AN INVESTMENT INDICATOR

2021 ◽  
pp. 267-278
Author(s):  
NEDELJKO PRDIĆ
Keyword(s):  
Stock Market ◽  
Information Technologies ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
Commodity Market ◽  
Tradable Goods ◽  
Economic Trends ◽  
Historical Role ◽  
Research Show

Stock exchanges are such specialised market institutions where standardised and tradable goods are traded and exchanged, which means precisely defining the quality and all other performances of goods. Trading is enabled by stock exchange customs and strict rules within the law. Stock exchange indices are the basic indicator of the importance of the stock market in the market on the basis of which decisions on investments in the stock market are made. The aim of this paper is to systematise the knowledge about the historical role of commodity exchanges on the market, but also to indicate the importance of the development of information technologies on the modern significance of stock exchanges. The results of the research show that stock exchange indices are the basic indicator of the state and development of the commodity market and investment tendencies. The conclusion is that stock exchange indices are an important factor in the development of the commodity market with special emphasis on their importance in agriculture. They are an indicator of economic trends and an indicator of investment.

scholarly journals Encouraging Investors to Enable Corporate Sustainability Transitions: The Case of Responsible Investment in France

2019 ◽  
Vol 32 (2) ◽  
pp. 125-144 ◽  
Author(s):  
Patricia Crifo ◽  
Rodolphe Durand ◽  
Jean-Pascal Gond
Keyword(s):  
Institutional Investors ◽  
Corporate Sustainability ◽  
Socially Responsible Investment ◽  
Sustainability Transitions ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Intermediary Organizations

This article studies the case of the socially responsible investment industry in France. This case accounts for how the socially responsible investment category and practices have successfully moved from the margins of the industry in the late 1990s to become mainstream over two decades. We bring to the forefront the importance of three complementary factors in the process of causing corporations to transition toward more sustainable businesses: the role of investors and, in particular, institutional investors; the importance of the presence of a clear category definition and of intermediary organizations, providing ratings, scores, and other calculative devices; and the role of governments and regulators. With other studies, this case stresses the fundamental influence of investors in how corporations manage sustainability transitions.

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