Pub Date : 2021-09-22DOI: 10.1080/20430795.2021.1974242
D. Baur, A. Trench, Sam Ulrich
ABSTRACT Gold is a precious metal and an important asset class. However, mining for gold can lead to severe environmental issues. Against this backdrop, this study proposes an alternative to mitigate the negative externalities of gold mining. Instead of digging out gold for investment purposes we propose to leave it in the ground and let nature act as a natural vault and custodian legally protected by gold firms and the government. Empirically, we analyse whether portfolios of gold exploration companies with access to such ‘green’ gold also provide exposure to the world price of gold. The results demonstrate that gold mining is not necessary to give investors access to gold.
{"title":"Green gold","authors":"D. Baur, A. Trench, Sam Ulrich","doi":"10.1080/20430795.2021.1974242","DOIUrl":"https://doi.org/10.1080/20430795.2021.1974242","url":null,"abstract":"ABSTRACT Gold is a precious metal and an important asset class. However, mining for gold can lead to severe environmental issues. Against this backdrop, this study proposes an alternative to mitigate the negative externalities of gold mining. Instead of digging out gold for investment purposes we propose to leave it in the ground and let nature act as a natural vault and custodian legally protected by gold firms and the government. Empirically, we analyse whether portfolios of gold exploration companies with access to such ‘green’ gold also provide exposure to the world price of gold. The results demonstrate that gold mining is not necessary to give investors access to gold.","PeriodicalId":45546,"journal":{"name":"Journal of Sustainable Finance & Investment","volume":"13 1","pages":"1200 - 1227"},"PeriodicalIF":4.3,"publicationDate":"2021-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44437264","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-22DOI: 10.1080/20430795.2021.1974241
Chenguel Med bechir, Meriem Jouirou
{"title":"Investment efficiency and corporate governance: evidence from Asian listed firms","authors":"Chenguel Med bechir, Meriem Jouirou","doi":"10.1080/20430795.2021.1974241","DOIUrl":"https://doi.org/10.1080/20430795.2021.1974241","url":null,"abstract":"","PeriodicalId":45546,"journal":{"name":"Journal of Sustainable Finance & Investment","volume":" ","pages":""},"PeriodicalIF":4.3,"publicationDate":"2021-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45815404","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-07DOI: 10.1080/20430795.2021.1968273
E. Davies, Y. A. Sare, Muazu Ibrahim, A. Agoba
{"title":"Effect of financial development on mortgage financing in Africa: an application of sampling splitting estimation approach","authors":"E. Davies, Y. A. Sare, Muazu Ibrahim, A. Agoba","doi":"10.1080/20430795.2021.1968273","DOIUrl":"https://doi.org/10.1080/20430795.2021.1968273","url":null,"abstract":"","PeriodicalId":45546,"journal":{"name":"Journal of Sustainable Finance & Investment","volume":" ","pages":""},"PeriodicalIF":4.3,"publicationDate":"2021-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45242759","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-03DOI: 10.1080/20430795.2021.1972678
H. Winkler, E. Tyler, Samantha Keen, A. Marquard
ABSTRACT A just transition transaction (JTT) in South Africa aims to address complex challenges of financing a transition away from coal, and social justice. Accelerated decarbonisation of electricity is essential for mitigation globally and in SA. However, the national utility Eskom, a state-owned enterprise, is in crisis with major operational, structural and financial problems, including legacy debt of €25bn. How and to what extent can a just transition transaction catalyse deep, structural change that is required in SA’s electricity system and promote social justice? What can we learn from the case study of a JTT about transition finance? The architecture of the JTT includes a blended finance vehicle, combining international concessionary and domestic commercial finance. Finance enables transition if it respects certain principles, promotes ambitious decarbonisation and assures compliance. A tough problem is whether such finance is provided at activity – or entity-level. We explore options for watertight remedies to ensure compliance with ambitious climate change action, though these merit further research. The innovation proposed to fund social justice is that concessional value provides significant and predictable flow of funds into a Just Transition Fund. The JTT partially addresses Eskom’s financial challenges, and thereby the strain on the country’s fiscus against a background of increasing public debt. Significant mitigation on the scale of 1–1.5 Gt CO2-eq over thirty years is achievable. The transaction may be of wider interest: Emerging economies with high coal dependence and socio-economic risk during energy transition might translate lessons from South Africa’s JTT for their own contexts.
{"title":"Just transition transaction in South Africa: an innovative way to finance accelerated phase out of coal and fund social justice","authors":"H. Winkler, E. Tyler, Samantha Keen, A. Marquard","doi":"10.1080/20430795.2021.1972678","DOIUrl":"https://doi.org/10.1080/20430795.2021.1972678","url":null,"abstract":"ABSTRACT A just transition transaction (JTT) in South Africa aims to address complex challenges of financing a transition away from coal, and social justice. Accelerated decarbonisation of electricity is essential for mitigation globally and in SA. However, the national utility Eskom, a state-owned enterprise, is in crisis with major operational, structural and financial problems, including legacy debt of €25bn. How and to what extent can a just transition transaction catalyse deep, structural change that is required in SA’s electricity system and promote social justice? What can we learn from the case study of a JTT about transition finance? The architecture of the JTT includes a blended finance vehicle, combining international concessionary and domestic commercial finance. Finance enables transition if it respects certain principles, promotes ambitious decarbonisation and assures compliance. A tough problem is whether such finance is provided at activity – or entity-level. We explore options for watertight remedies to ensure compliance with ambitious climate change action, though these merit further research. The innovation proposed to fund social justice is that concessional value provides significant and predictable flow of funds into a Just Transition Fund. The JTT partially addresses Eskom’s financial challenges, and thereby the strain on the country’s fiscus against a background of increasing public debt. Significant mitigation on the scale of 1–1.5 Gt CO2-eq over thirty years is achievable. The transaction may be of wider interest: Emerging economies with high coal dependence and socio-economic risk during energy transition might translate lessons from South Africa’s JTT for their own contexts.","PeriodicalId":45546,"journal":{"name":"Journal of Sustainable Finance & Investment","volume":"13 1","pages":"1228 - 1251"},"PeriodicalIF":4.3,"publicationDate":"2021-09-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42503723","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.1080/20430795.2021.1972679
Preeti Sharma, A. Shrivastava, S. Rohatgi, Bhakti Bhushan Mishra
ABSTRACT The present study is conducted to check the effect of the collection of macroeconomic variables on Indian sustainability indices. The independent variables adopted are Industrial Index, Wholesale Price Index, Economy Money Supply (M3), Crude Oil Prices, Real Effective Exchange Rate (REER), while dependent variables are S&P BSE GREENEX and S&P BSE CARBONEX. The study uses monthly data (converted into natural log form) from April 2012 to March 2021. Our study shows that GREENEX is linked with the index of Industrial Production, Wholesale Price Index, M3, Crude Oil Prices, and (REER) and CARBONEX is linked with the index of Industrial Production, M3, Crude Oil Prices, and REER while it is not linked with wholesale prices index. There is no association of interest rates with any of the indices taken (GREENEX and CARBONEX).
{"title":"Impact of macroeconomic variables on sustainability indices using ARDL model","authors":"Preeti Sharma, A. Shrivastava, S. Rohatgi, Bhakti Bhushan Mishra","doi":"10.1080/20430795.2021.1972679","DOIUrl":"https://doi.org/10.1080/20430795.2021.1972679","url":null,"abstract":"ABSTRACT The present study is conducted to check the effect of the collection of macroeconomic variables on Indian sustainability indices. The independent variables adopted are Industrial Index, Wholesale Price Index, Economy Money Supply (M3), Crude Oil Prices, Real Effective Exchange Rate (REER), while dependent variables are S&P BSE GREENEX and S&P BSE CARBONEX. The study uses monthly data (converted into natural log form) from April 2012 to March 2021. Our study shows that GREENEX is linked with the index of Industrial Production, Wholesale Price Index, M3, Crude Oil Prices, and (REER) and CARBONEX is linked with the index of Industrial Production, M3, Crude Oil Prices, and REER while it is not linked with wholesale prices index. There is no association of interest rates with any of the indices taken (GREENEX and CARBONEX).","PeriodicalId":45546,"journal":{"name":"Journal of Sustainable Finance & Investment","volume":"13 1","pages":"572 - 588"},"PeriodicalIF":4.3,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48358450","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-31DOI: 10.1080/20430795.2022.2106934
U. Atz, Tracy Van Holt, Z. Liu, C. Bruno
ABSTRACT Sustainability in business and ESG (environmental, social, and governance) in finance have exploded in popularity among researchers and practitioners. We surveyed 1,141 primary peer-reviewed papers and 27 meta-reviews (based on ∼1,400 underlying studies) published between 2015 and 2020. Aggregate conclusions from a sample suggest that the financial performance of ESG investing has on average been indistinguishable from conventional investing (with one in three studies indicating superior performance) – in contrast with research in the wider management literature as well as industry reports. Until recently top finance journals did not publish climate change related studies, yet these studies capture the frontier of corporate risk and ESG investment strategies. We developed three propositions: first, ESG integration as a strategy seems to perform better than screening or divestment; second, ESG investing provides asymmetric benefits, especially during a social or economic crisis; and third, decarbonization strategies can potentially capture a climate risk premium.
{"title":"Does sustainability generate better financial performance? review, meta-analysis, and propositions","authors":"U. Atz, Tracy Van Holt, Z. Liu, C. Bruno","doi":"10.1080/20430795.2022.2106934","DOIUrl":"https://doi.org/10.1080/20430795.2022.2106934","url":null,"abstract":"ABSTRACT Sustainability in business and ESG (environmental, social, and governance) in finance have exploded in popularity among researchers and practitioners. We surveyed 1,141 primary peer-reviewed papers and 27 meta-reviews (based on ∼1,400 underlying studies) published between 2015 and 2020. Aggregate conclusions from a sample suggest that the financial performance of ESG investing has on average been indistinguishable from conventional investing (with one in three studies indicating superior performance) – in contrast with research in the wider management literature as well as industry reports. Until recently top finance journals did not publish climate change related studies, yet these studies capture the frontier of corporate risk and ESG investment strategies. We developed three propositions: first, ESG integration as a strategy seems to perform better than screening or divestment; second, ESG investing provides asymmetric benefits, especially during a social or economic crisis; and third, decarbonization strategies can potentially capture a climate risk premium.","PeriodicalId":45546,"journal":{"name":"Journal of Sustainable Finance & Investment","volume":"13 1","pages":"802 - 825"},"PeriodicalIF":4.3,"publicationDate":"2021-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42706113","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-27DOI: 10.1080/20430795.2021.1964811
A. Kumari, V. Garg
ABSTRACT Agricultural credit works as a most important factor in a developing country like India, where 70% of the population resides in the rural area that is still dependant on agriculture. Sustainable development of agriculture depends upon the available natural resources, and in India, the natural resources and climate are favourable for production. This study examines the short-term and long-term effect of bank's credit on the agricultural sector growth. Using the secondary data from 1990 to 2019 the ARDL Bound test has been conducted to check the relationship between the variables. In the study we found that in the long run credit, interest rate and inflation rate have positive impact on the agricultural development, whereas in the short run credit and inflation rate have a significant impact, but the interest rate has no significant impact on the agricultural development.
{"title":"Impact of credit on sustainable agricultural development in India","authors":"A. Kumari, V. Garg","doi":"10.1080/20430795.2021.1964811","DOIUrl":"https://doi.org/10.1080/20430795.2021.1964811","url":null,"abstract":"ABSTRACT Agricultural credit works as a most important factor in a developing country like India, where 70% of the population resides in the rural area that is still dependant on agriculture. Sustainable development of agriculture depends upon the available natural resources, and in India, the natural resources and climate are favourable for production. This study examines the short-term and long-term effect of bank's credit on the agricultural sector growth. Using the secondary data from 1990 to 2019 the ARDL Bound test has been conducted to check the relationship between the variables. In the study we found that in the long run credit, interest rate and inflation rate have positive impact on the agricultural development, whereas in the short run credit and inflation rate have a significant impact, but the interest rate has no significant impact on the agricultural development.","PeriodicalId":45546,"journal":{"name":"Journal of Sustainable Finance & Investment","volume":"13 1","pages":"560 - 571"},"PeriodicalIF":4.3,"publicationDate":"2021-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44397740","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-27DOI: 10.1080/20430795.2021.1961557
T. Husse, Federico Pippo
This study attempts to explain the relationship between ESG and financial performance. It utilises a new method for constructing an ESG portfolio with a high exposure towards ESG that eliminates the inherent correlation between size and ESG. In that perspective, a zero initial investment portfolio that goes long in responsible companies and short in irresponsible companies is adopted;hence, developing a 'Responsible Minus Irresponsible' (RMI) factor mimicking portfolio. A pricing anomaly test on this portfolio suggests that ESG exerts superior financial performance, mostly as a result of a significant lower market risk. Performing a cross-sectional analysis of different factor models on an international set of company returns indicates a negative effect of ESG on expected returns. However, the ESG factor becomes insignificant once multiple factors are introduced as explanatory variables. Consequently, ESG represents a pricing anomaly but does not act as an independent risk factor.
{"title":"Responsible Minus Irresponsible - a determinant of equity risk premia?","authors":"T. Husse, Federico Pippo","doi":"10.1080/20430795.2021.1961557","DOIUrl":"https://doi.org/10.1080/20430795.2021.1961557","url":null,"abstract":"This study attempts to explain the relationship between ESG and financial performance. It utilises a new method for constructing an ESG portfolio with a high exposure towards ESG that eliminates the inherent correlation between size and ESG. In that perspective, a zero initial investment portfolio that goes long in responsible companies and short in irresponsible companies is adopted;hence, developing a 'Responsible Minus Irresponsible' (RMI) factor mimicking portfolio. A pricing anomaly test on this portfolio suggests that ESG exerts superior financial performance, mostly as a result of a significant lower market risk. Performing a cross-sectional analysis of different factor models on an international set of company returns indicates a negative effect of ESG on expected returns. However, the ESG factor becomes insignificant once multiple factors are introduced as explanatory variables. Consequently, ESG represents a pricing anomaly but does not act as an independent risk factor.","PeriodicalId":45546,"journal":{"name":"Journal of Sustainable Finance & Investment","volume":" ","pages":""},"PeriodicalIF":4.3,"publicationDate":"2021-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44989401","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-25DOI: 10.1080/20430795.2021.1962662
M. Saleh, O. Jawabreh, Enas Fakhri Mohammad Abu-Eker
ABSTRACT The study investigates the factors that influence creative appliances in Jordanian hotels, as well as sustainable practices and their financial impact. This study aims to assist hotel management in understanding the reasons for creative accounting and assessing the impact it has on the integrity of hotel financial statements. 345 chartered accountants were included in the research sample (auditors). Jordanian hotels use good creative accounts; in other words, the hotel's financial accounts are approved by auditors because data and financial statements are manipulated in accordance with accounting rules and standards. This article discusses each creative accounting technique that can be used in hotels, to demonstrate the potential of each creative accounting method in hotels, and to evaluate the impact of each creative accounting method on the quality of the financial statements. The researchers hoped that this study would shed some light on Jordan's hotel industry.
{"title":"Factors of applying creative accounting and its impact on the quality of financial statements in Jordanian hotels, sustainable practices","authors":"M. Saleh, O. Jawabreh, Enas Fakhri Mohammad Abu-Eker","doi":"10.1080/20430795.2021.1962662","DOIUrl":"https://doi.org/10.1080/20430795.2021.1962662","url":null,"abstract":"ABSTRACT The study investigates the factors that influence creative appliances in Jordanian hotels, as well as sustainable practices and their financial impact. This study aims to assist hotel management in understanding the reasons for creative accounting and assessing the impact it has on the integrity of hotel financial statements. 345 chartered accountants were included in the research sample (auditors). Jordanian hotels use good creative accounts; in other words, the hotel's financial accounts are approved by auditors because data and financial statements are manipulated in accordance with accounting rules and standards. This article discusses each creative accounting technique that can be used in hotels, to demonstrate the potential of each creative accounting method in hotels, and to evaluate the impact of each creative accounting method on the quality of the financial statements. The researchers hoped that this study would shed some light on Jordan's hotel industry.","PeriodicalId":45546,"journal":{"name":"Journal of Sustainable Finance & Investment","volume":"1 8‐9","pages":"499 - 515"},"PeriodicalIF":4.3,"publicationDate":"2021-08-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41256479","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-23DOI: 10.1080/20430795.2021.1964808
Xingxing Chen, O. Weber, Xianzhong Song, Lidan Li
ABSTRACT This study analyses how equity funds react to institutional pressure related to green finance. Based on the analysis of 378 open-end equity funds in China from 2010 to 2019, we examined the environmental performance of fund holdings to measure their level of green investment. In our analyses, we distinguished between funds with positive and negative screening strategies. Our results indicate that the funds’ green investments are gradually increasing. Furthermore, we found that green investment strategies help to increase the funds’ excess return. The positive connection to financial returns, however, is only valid for funds with negative screening strategies. Finally, we found that fund investors react negatively to funds using positive screening to identify green investments. The study contributes to theoretical and practical knowledge about factors influencing equity funds’ green and financial performance.
{"title":"Do greener funds perform better? An analysis of open-end equity funds in China","authors":"Xingxing Chen, O. Weber, Xianzhong Song, Lidan Li","doi":"10.1080/20430795.2021.1964808","DOIUrl":"https://doi.org/10.1080/20430795.2021.1964808","url":null,"abstract":"ABSTRACT This study analyses how equity funds react to institutional pressure related to green finance. Based on the analysis of 378 open-end equity funds in China from 2010 to 2019, we examined the environmental performance of fund holdings to measure their level of green investment. In our analyses, we distinguished between funds with positive and negative screening strategies. Our results indicate that the funds’ green investments are gradually increasing. Furthermore, we found that green investment strategies help to increase the funds’ excess return. The positive connection to financial returns, however, is only valid for funds with negative screening strategies. Finally, we found that fund investors react negatively to funds using positive screening to identify green investments. The study contributes to theoretical and practical knowledge about factors influencing equity funds’ green and financial performance.","PeriodicalId":45546,"journal":{"name":"Journal of Sustainable Finance & Investment","volume":"13 1","pages":"387 - 405"},"PeriodicalIF":4.3,"publicationDate":"2021-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44761172","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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