scholarly journals The Demography of Socially Responsible Investors across Countries and Time: A Systematic Review

2018 ◽  
Vol 7 (2) ◽  
pp. 7-15
Author(s):  
Anjum Ubaid Siddiqui
Keyword(s):  
Financial Risk ◽  
Socially Responsible Investment ◽  
Future Research ◽  
Socially Responsible ◽  
Responsible Investment ◽  
The Past ◽  
Socially Responsible Investments ◽  
Gender Education ◽  
Future Research Directions ◽  
Socio Demographic Factors

The field of investment has received considerable changes in recent years. Over the past decade one of the major trends in the finance domain is the emergence of Socially Responsible Investments, reflecting the increasing awareness of investors to social and environmental and corporate governance issues. Over the past three decades many surveys have been conducted to understand and segment the demographic profile of socially responsible investors. This article aims to provide an overview of the existing literature on the demographic characteristics of socially responsible investors that has been studied across countries and time .We have limited our focus to insights generated by the articles specifically, dealing with relative influence of socio-demographic factors on the attitude towards Socially Responsible Investment, as opposed to broadening the scope of our inquiry to a larger set of studies related to the SRI such as fund performance, financial risk/return characteristics etc. The articles published have been classified into four broad demographic categories viz. Age, Gender, Education and Income on the basis of the importance of each category in context of Socially Responsible Investment. Finally the conclusion and future research directions are suggested which would be of importance for both academicians and investment world.

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 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>

German Socially Responsible Investment: Barriers and Opportunities

2011 ◽  
Vol 12 (3) ◽  
pp. 865-900 ◽  
Author(s):  
Friederike Johanna Preu ◽  
Benjamin J. Richardson
Keyword(s):  
Financial Markets ◽  
Socially Responsible Investment ◽  
Institutional Reforms ◽  
Socially Responsible ◽  
Responsible Investment ◽  
The Past ◽  
Attitudinal Factors ◽  
Investment Barriers ◽  
Barriers And Opportunities ◽  
Post War

In socially responsible investment terms, Germany is a contradiction. The country is considered by many as one of the pioneers of post-war environmentalism and social reform. Yet, German financial institutions are amongst the European laggards in adopting environmentally and socially informed approaches to investment. This article identifies a variety of legal, institutional and attitudinal factors which hinder the growth of the German SRI market. Its paltry size does not reflect evidence of any specific disinterest among German investors in social and environmental issues. Rather, it arises from a combination of structural impediments, particularly the institutional arrangements for German pension schemes that hinder their participation in financial markets, regulations which encourage conservative investments, and investors' preference for low-risk assets and avoidance of shareholder activism. Legal and institutional reforms over the past decade have in theory created better opportunities for SRI in Germany, although they have yet to engender significant changes in the market.

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.

scholarly journals Evaluating the Performance of Socially Responsible Investment Funds

2018 ◽  
Vol 65 (2) ◽  
pp. 139-158
Author(s):  
Liliana Eva Donath ◽  
Roxana Ioan ◽  
Tatenda Mandimutsira
Keyword(s):  
Mutual Funds ◽  
Research Method ◽  
Market Value ◽  
Socially Responsible Investment ◽  
Decision Making Process ◽  
Socially Responsible ◽  
Investment Funds ◽  
Responsible Investment ◽  
Socially Responsible Investments ◽  
The U.S

Abstract The definition and scope of sustainability have evolved over the years, stimulated by debates which have won the attention of investors, thereby creating concepts such as responsible investment, socially responsible investment, responsible finance, etc. The purpose of the paper is to demonstrate whether screening has an effect on the financial performance of mutual funds and whether these effects are positive or negative. The study mainly focuses on the U.S. market as it is well developed and therefore provides greater insight and value. The research method uses the Markowitz and Sharpe market models to determine the market value of SRI and non SRI mutual funds. The study also depicts the investors’ attitude towards embedding sustainability driven variables in the decision making process as well as the market response to socially responsible investments.

scholarly journals International Socially Responsible Investment Funds

10.3846/153 ◽  
2011 ◽  
Vol 1 (3) ◽  
pp. 56-60
Author(s):  
Modestas Plakys
Keyword(s):  
Alternative Energy ◽  
Pension Funds ◽  
Socially Responsible Investment ◽  
Public Pension ◽  
Socially Responsible ◽  
Investment Funds ◽  
Responsible Investment ◽  
Environment Changes ◽  
Socially Responsible Investments ◽  
Private And Public

The study deals with socially responsible investment funds as the type of investment funds universe. European and USA market for socially responsible investment funds is presented. The dynamics of assets under the management and number of these funds in the market are considered. The approaches for socially responsible investments are studied and reasons for increased interest in such investments are named. The main reasons why the global socially responsible funds become more and more popular are: an increase of interest of community in socially responsible companies, in problems regarding climate and environment changes, in government attitude towards alternative energy and investments of private and public pension 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.

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