scholarly journals Responsible Investing: A Study on Non-Economic Goals and Investors’ Characteristics

2020 ◽  
Vol 9 (SI) ◽  
pp. 63-78
Author(s):  
Renuka Sharma ◽  
Kiran Mehta ◽  
Vishal Vyas
Keyword(s):  
Socially Responsible Investment ◽  
Individual Investors ◽  
Wealth Creation ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Fund Managers ◽  
Responsible Investing ◽  
Sustainable Investment ◽  
Rational Investment ◽  
The Relationship

The notion of rational investment is not attuned with the idea of socially responsible investment. Incongruence with conventional investments, the SRI/sustainable investment/ethical investment is pertained to ethical, environmental and social criteria (Eccles and Viviers,2011). All investors are not single-minded for an objective of wealth creation. The welfare of society and the environment are among the other drivers of investment. In certain cases, investors do prefer sustainable development to personal financial aspects (Beal et al., 2005). The present study has primarily focused on assessing the relationship between individual investors’ attributes and their noneconomic goal in order to comprehend their socially responsible investment behaviour specifically in Indian scenario. The findings of study are useful for fund managers, regulators and researchers as study has provided useful insights regarding behaviour of Indian investors for responsible investments.

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.

Making Corporations Environmentally Sustainable: The Limits of Responsible Investing

2012 ◽  
Vol 13 (12) ◽  
pp. 1412-1437 ◽  
Author(s):  
Gail E. Henderson
Keyword(s):  
North America ◽  
Business Schools ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Non Profit ◽  
Environmentally Sustainable ◽  
Certificate Programs ◽  
Responsible Investing ◽  
Industry Standard ◽  
Sustainable Investment

Almost weekly, it seems, my inbox fills with dozens of academic articles on the topic of “socially responsible investing” or “SRI”. Non-profit organizations across Europe and North America promote SRI as the new investment industry standard. Business schools now offer certificate programs in “sustainable investment”. In 2006, the UN launched the Principles for Responsible Investment (PRI) to provide a framework for investors interested in practicing responsible investing. The PRI now boast over 1,000 signatories, including asset owners and investment managers.

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.  

scholarly journals Do Socially Responsible Investment Funds Sell Losses and Ride Gains? The Disposition Effect in SRI Funds

2021 ◽  
Vol 13 (15) ◽  
pp. 8142
Author(s):  
Beatrice Boumda ◽  
Darren Duxbury ◽  
Cristina Ortiz ◽  
Luis Vicente
Keyword(s):  
Mutual Fund ◽  
Economic Loss ◽  
Investment Strategy ◽  
Socially Responsible Investment ◽  
Disposition Effect ◽  
Socially Responsible ◽  
Investment Funds ◽  
Responsible Investment ◽  
Fund Managers ◽  
Ethical Investments

An increasing percentage of the total net assets under professional management is devoted to ethical investments. Socially responsible investment (SRI) funds have a dual objective: building an investment strategy based on environmental, social, and corporate governance (ESG) screens and providing financial returns to investors. In the current study, we investigate whether this dual objective has an influence on the behavior of mutual fund managers in the realization of gains and losses. Evidence has shown that most investors in SRI funds invest in those funds primarily because of their social concerns. If the motivations of SRI managers align with those of SRI investors, SRI managers might then have more incentives than conventional managers to hold onto losing stocks if they feel their social value compensates for the economic loss. We hypothesize that SRI managers would be less prone to the disposition effect than conventional managers. Pertaining to the disposition effect, we do not find evidence of a difference in the behavior of SRI fund managers compared with that of conventional fund managers. Our results hold, even when considering market trends, management structure, gender, and prior performance.

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 Sensitivity Of Socially Responsible Investment Behaviour To Experience And Size Of Funds

2020 ◽  
Vol 36 (2) ◽  
pp. 77-90
Author(s):  
Mohammad Talha ◽  
Abdullah Sallehhuddin Abdullah Salim ◽  
Abdul Aziz Abdul Jalil ◽  
Norzarina Md Yatim
Keyword(s):  
Ethical Climate ◽  
Talent Management ◽  
Moral Intensity ◽  
Subjective Norms ◽  
Moderating Effect ◽  
Socially Responsible ◽  
Fund Manager ◽  
Responsible Investment ◽  
Fund Managers ◽  
The Relationship

This paper examines the moderating effect of experience and size of fund towards socially responsible investment (SRI).A survey was conducted to get the responses of fund managers, and data were analysed using a multi-group approach of Structural Equation Modelling (SEM).At intentional level, there was a significant moderating effect on the relationship between attitudes and caring ethical climate towards an intention to SRI among less experienced fund managers. There was a significant moderating effect on the relationship between subjective norms and perceived behavioural control towards an intention to SRI among more experienced fund managers. There was also a significant moderating effect on the relationship between subjective norms and caring ethical climate towards an intention to SRI among small-sized fund managers. At behavioural level, there was a significant moderating effect on the relationship between moral intensity and SRI behaviour among less experienced fund managers. There was also a significant moderating effect on the relationship between moral intensity and caring ethical climate on SRI behaviour among bigger-sized fund managers. This paper conduits the literature gap by expanding the understanding on the moderating impact of experience and size of fund towards SRI, provides insights to policy makers in carrying out appropriate talent development strategies in accumulating the support of fund managers towards SRI-related initiatives in the capital market, and reveals the potential contribution of fund manager talent management in sustainable development through SRI. The paper offers vision on fund manager talent management to forefront the progress of SRI in emerging economies.

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