scholarly journals Opportunities to Increase Financial Well-Being by Investing in Environmental, Social and Governance with Respect to Improving Financial Literacy under COVID-19: The Case of Latvia

2021 ◽  
Vol 14 (1) ◽  
pp. 339
Author(s):  
Inese Mavlutova ◽  
Andris Fomins ◽  
Aivars Spilbergs ◽  
Dzintra Atstaja ◽  
Janis Brizga
Keyword(s):  
Financial Literacy ◽  
Well Being ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Level Of Education ◽  
Factors Influencing ◽  
Socially Responsible Investments ◽  
Investment Experience ◽  
Sustainable Investments ◽  
Private Investors

The latest studies reveal that the COVID-19 pandemic has pushed investors in developed economies to focus more on the value attached to environmental and social responsibilities. Unfortunately, socially responsible investment and compliance with environmental, social and governance criteria are not given enough priority in Latvia at present. The purpose of the study is to investigate how the COVID-19 pandemic has influenced the willingness of Latvians to invest in assets that meet environmental, social and governance (ESG) criteria and factors influencing investors’ choice based on their financial literacy. Different views on sustainable investments, socially responsible investments and the relevance of environmental, social and governance criteria from private investors’ perspectives were analyzed to identify factors influencing investment decisions in favour of sustainable investments. Quantitative analysis was carried out to reveal the regularities between financial literacy, the willingness to invest to meet the ESG criteria and the level of education and income of the Latvian population, as well as their savings/investment experience. Such statistical methods as descriptive statistics and hypothesis testing were applied to perform an analysis of the results. The authors’ findings include the importance of sustainable investing to Latvian society, changes of attitude towards ESG investing in different private investors’ groups under the COVID-19 crisis, and the effects of these changes on the financial well-being of the population and, on the basis of these findings, have come to the conclusion that the willingness to invest in the assets that follow environmental, social and governance criteria depends on the level of education, savings/investment experience and income level.

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.

The Market for Socially Responsible Investments

2020 ◽  
pp. 171-188
Author(s):  
Mark Anthony Camilleri
Keyword(s):  
Financial Markets ◽  
Positive Impact ◽  
Socially Responsible Investing ◽  
Future Research ◽  
Socially Responsible ◽  
Responsible Investing ◽  
Socially Responsible Investments ◽  
The Subject ◽  
Public Organisations ◽  
Sustainable Investments

This chapter explains how socially responsible investing (SRI) has evolved in the last few decades and sheds light on its latest developments. It describes different forms of SRI in the financial markets and deliberates on the rationale for the utilisation of positive and negative screenings of listed businesses and public organisations. It also presents key theoretical underpinnings on the subject and reports that the market for the responsible investments has recently led to an increase in contractors, non-governmental organisations (NGOs), and research firms who are involved in the scrutinisation of the enterprises' environmental, social, and governance (ESG) credentials. This contribution raises awareness on the screenings of positive impact and sustainable investments. It puts forward future research avenues in this promising field of study.

scholarly journals Sustainable Banking: New Forms of Investing under the Umbrella of the 2030 Agenda

2020 ◽  
Vol 12 (5) ◽  
pp. 2096 ◽  
Author(s):  
Mariano Méndez-Suárez ◽  
Abel Monfort ◽  
Fernando Gallardo
Keyword(s):  
Social Impact ◽  
Positive Impact ◽  
Socially Responsible ◽  
Public And Private ◽  
Responsible Investment ◽  
Valuation Model ◽  
2030 Agenda ◽  
Socially Responsible Investments ◽  
Social Impact Bonds ◽  
Investment Portfolios

(1) Social Impact Bonds (SIBs) foster the relationships between public and private sectors while adding value to new forms of investment that are closely linked to Socially Responsible Investments (SRIs). In this context, Sustainable Developments Goals (SDGs) aim to strengthen global partnerships in order to achieve the 2030 Agenda. Sustainable banking should consider its role in both new responsible investment products and the 2030 Agenda. This study aims to: (i) estimate the ROI of SIBS, (ii) define a financial formulation and a measurement system, and (iii) explain the relationship between SIBs and SDGs. (2) This research analyzes SIBs from an SDG approach, and proposes a valuation model based on a financial options valuation methodology that clarifies the financial value of the world’s first SIB (Peterborough Prison, UK). (3) Findings suggest that investors expect to have a negative return of 16.48%, and that this expected loss may be compensated for by the short- and long-term positive impact of an intervention in society. (4) It is shown that SIBs provide an opportunity to reach SDG 17 and improve sustainable investment portfolios, while providing an opportunity to strengthen a company’s Corporate Social Responsibility policy and its corporate reputation.

scholarly journals A Brief Review of Responsible AI and Socially Responsible Investment in Financial and Stock Trading

2021 ◽  
Author(s):  
A. K. M. Amanat Ullah ◽  
Samiha Sultana ◽  
Fahim Faisal ◽  
Md. Muzahidul Islam Rahi ◽  
Md. Ashraful Alam ◽  
...  
Keyword(s):  
Ethical Decision Making ◽  
Research Work ◽  
Machine Learning Techniques ◽  
Future Research ◽  
Socially Responsible ◽  
Research Directions ◽  
Responsible Investment ◽  
Learning Techniques ◽  
Socially Responsible Investments ◽  
Future Research Directions

Automated trading is used in most of the major markets of our world. In order to ensure sustainable development, incorporating ethical and socially responsible ideas while designing these Artificial Intelligence (AI) systems has become a necessity. Both the industry and the academia are working towards Responsible AI, which can make Socially Responsible Investments (SRI). This paper reviews the research on SRI investment in the financial sector and evaluates these methods, which can help find future research directions in Computational Finance. This survey looks at the machine learning techniques used for ethical decision-making while stock or forex trading, which will benefit any further research work on Responsible AI in Finance.<br>

scholarly journals TRENDS IN THE DEVELOPMENT OF SOCIALLY RESPONSIBLE INVESTING IN THE WORLD: THEORETICAL AND PRACTICAL ASPECTS

2020 ◽  
pp. 74-83
Author(s):  
Maryna Dielini
Keyword(s):  
Statistical Study ◽  
Socially Responsible Investing ◽  
Scientific Article ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Historical Factors ◽  
Socially Responsible Investments ◽  
The World ◽  
The Subject

The subject of this scientific article is the theoretical study of socially responsible investment (SRI) and development in the world and countries of Europe. The purpose of the research is to study the essence of socially responsible investing, its strategies and to analyze statistically the development of socially responsible investing in the world and in Europe in particular. Research methods. The methods of synthesis, analysis, comparison, generalization, statistical data processing, graphical and tabular methods of presentation of scientific results were used. The result of the work is a theoretical and statistical study of the subject of the article. The essence of socially responsible investing is defined as investing in socially responsible entrepreneurships with the purpose of profit. Historical factors of socially responsible investing have been investigated, among which the religious aspect and the increasing importance of human values have been highlighted. Have been described main strategies that investors use in decision-making process about financing companies or projects, outlined their differences and purposes. On the basis of abovementioned, a statistical study was conducted to analyze the overall status of the SRI in the world, what strategies are most represented and to explore more deeply the state of development of SRI in Europe, as the region with the highest volume of SRI. The results of the research can be used by companies that search an outside investor or, conversely, invest in other businesses to understand the request of today’s business society. Taking into account the world experience will allow to increase the company's own image and a positive effect on the society and the environment. Conclusion. Socially responsible investments are gaining ground in the world, as this is required by the global community. Entrepreneurs understand the importance of earning socially responsible profits, which is generated by investing in responsible enterprises and projects.

A Study on How Investors Decide on Socially Responsible Investments: Classification of Investment Behavior According to Companies’ Environmental Activities

2014 ◽  
Vol 8 (5) ◽  
pp. 677-687
Author(s):  
Nariaki Nishino ◽  
◽  
Kaoru Kihara ◽  
Kenju Akai ◽  
Tomonori Honda ◽  
...  
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Investment Decision ◽  
Sustainable Production ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Investment Decision Making ◽  
Socially Responsible Investments ◽  
People’S Attitudes

Environmental problems must be solved urgently, and sustainable production activities are desired. This study focuses on environmental finance, which is a method of promoting sustainable corporation activities. Environmental finance allows socially responsible investment to directly contribute to corporate activities and sustainable production activities. To clarify the mechanism of eco-friendly investment decision making, 4,843 respondents took a questionnaire survey on investment decision making, based on the framework of prospect theory. The results showed that prospect theory did not always work for environment issues and that people’s attitudes when they decide on eco-friendly investments could be classified to four clusters.

Performative Praktiken am Kapitalmarkt

2015 ◽  
Vol 59 (4) ◽  
Author(s):  
Sabuha Ilgaz ◽  
Hans-Martin Zademach
Keyword(s):  
Capital Market ◽  
Qualitative Data ◽  
Socially Responsible ◽  
Impact Investing ◽  
Responsible Investment ◽  
Rating Agencies ◽  
Socially Responsible Investments ◽  
Market Practices ◽  
And Performance

Performative capital market practices. The case of socially responsible investments in Germany. Socially responsible investment (SRI), also referred to as sustainable, responsible or impact investing, is an investment discipline that does not only take conventional financial criteria into account (most notably return, risk and liquidity), but also puts emphasis on environmental, social, governance (ESG) considerations to generate long-term competitive financial returns and positive societal impact. Key instrument in this market are so-called sustainability ratings which seek to assess the economic, environmental and social values and performance of potential investment objects. Such ratings are produced by a worldwide growing, but still limited number of private rating agencies that offer a dazzling variety of - in some cases even contradictory - ratings, rankings, indices and awards that have an enormous potential to influence investment decisions of all kind of investors. Applying a cultural geographies of economies approach, the paper in-hand aims to shed new light on this particular group of financial agents and their particular practices. It presents original qualitative data from Germany that delivers insights on the different ways these agencies follow in their assessments, how they define, operationalize and perform the notion of sustainability, and how effective they are in actually contributing to a more sustainable world.

scholarly journals Factors influencing financial inclusion in Oman: An empirical study

2021 ◽  
Vol 11 (9) ◽  
pp. 2391-2406 ◽  
Author(s):  
Mohammed Hersi Warsame ◽  
Alhashmi Aboubaker Lasyoud ◽  
Yousif Abdelbagi Abdalla
Keyword(s):  
Financial Literacy ◽  
Employment Status ◽  
Financial Inclusion ◽  
Survey Questionnaire ◽  
Moderation Effect ◽  
Level Of Education ◽  
Selective Sampling ◽  
Factors Influencing ◽  
Bank Managers ◽  
Relevant Variables

This study investigates the factors that have the highest effects on financial inclusion in Oman. To achieve this, a survey questionnaire employing selective sampling was conducted at Al-Buraimi governorate to examine the moderation effect of gender, age and level of education among other relevant variables on financial inclusion in Oman. The results show that the younger generation were more likely to be financially excluded compared to the well-off participants and that financial literacy is significantly moderated by age, gender and employment status. The study made a huge contribution in the endeavor of enhancing financial inclusion in Oman by depicting the importance of social influence, which would assist bank managers and financial marketers as it largely dictates the choice of the type of the bank that a customer would choose in Oman.

scholarly journals Bibliometric analysis of research on responsible investment

2021 ◽  
pp. 70-76
Author(s):  
І.О. Makarenko ◽  
A.S. Vorontsova ◽  
Yu.V. Yelnikovа ◽  
A.S. Lasukova
Keyword(s):  
Bibliometric Analysis ◽  
Socially Responsible ◽  
Scientific Publications ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Time Period ◽  
Functional Aspects ◽  
Socially Responsible Investments ◽  
Investment Process ◽  
Corporate Social

The formation of the concept of responsible investment involves a change in the basic understanding of the investment process, which requires consideration of the possible consequences of such actions for the planet, society and economy. In this regard, it is important to provide a thorough methodological basis that will be the groundwork for the dissemination of this concept and its scientific foundation. The purpose of this work is to conduct a quantitative bibliometric analysis of research on responsible investing. The scientometric international databases Web of Science from Clarivate Analytics and Scopus from Elsevier and their built-in tools were used for this purpose. The time period of the study was 1990 – March 2021, the main search query – «responsible investment». Quantitative analysis of scientific publications in selected databases was conducted by time, geographical and subject search, analysis of organizations that fund research on this topic and the most cited works. The results show a growing trend of research on responsible investment in the world, with an increase in recent years, and a predominance of research by scientists from English-speaking countries (UK, United States, Australia, Canada) and European countries (Spain, France, Germany, etc.). Research is mainly funded by the European Commission and other Japanese and European organizations. The analysis of subject areas in the study of responsible investing revealed the presence of both managerial and economic, as well as social and environmental issues. The analysis of the most cited works in the scientometric databases Scopus and WoS revealed the popularity of socially responsible investments in the context of institutional, behavioral and functional aspects, as well as their connection with corporate social responsibility.

The liquidity, performance and investor preference of socially responsible investments

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jennifer Brodmann ◽  
Phuvadon Wuthisatian ◽  
Rama K. Malladi
Keyword(s):  
Financial Crisis ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
Excess Return ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investment ◽  
Socially Responsible Investments ◽  
Significant Difference ◽  
Investor Preference

PurposeThe purpose of the paper is to analyze socially responsible investment (SRI) asset performance compared to traditional assets using the MSCI KLD 400 Index. The authors examine the required return that investors expect to maintain their holdings in SRI stock and whether SRI stocks can be used for diversification during financial crises.Design/methodology/approachThe authors examine SRI stocks' liquidity from the MSCI KLD 400 index, encompassing all environmental, social and governance (ESG) factor investments over 25 years, from 1990 until 2019. The authors test whether sorting portfolios based on their excess return, liquidity and volatility can explain the difference in SRI and non-SRI stocks' returns and then examine the global financial crisis' (GFC) impact on excess returns for SRI and non-SRI assets.FindingsThe authors find a significant difference in liquidity and volatility between SRI and non-SRI stocks and that SRI stocks perform better during financial crises. The results suggest a possible general investor preference to invest in non-SRI stocks despite our findings that SRI stocks tend to withstand financial risk better than non-SRI stocks. The authors find that long-term investors may be willing to forego short-term gains to reduce their overall risk exposure during crises.Originality/valueSRI is gaining international popularity as an alternative investment that includes ratings based on ESG factors. Previous studies provide mixed results of whether SRI stocks outperform conventional stocks. In addition, there is limited research examining the liquidity and volatility of SRI assets. The authors compare the differences between SRI and non-SRI stocks in terms of excess return, volatility and liquidity and compare the liquidity of SRI and non-SRI stocks during the financial crisis.

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