BUSINESS INFORM JOURNAL.

УКР

ENG

Search:

REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

PUBLISHER

Liburkina L. M.

SITE SECTIONS

The Conceptual Approaches to Defining the Essence of Impact Investment
Lomachynska I. A.

Lomachynska, Iryna A. (2020) “The Conceptual Approaches to Defining the Essence of Impact Investment.” Business Inform 2:16–22.
https://doi.org/10.32983/2222-4459-2020-2-16-22

Section: Economic Theory

Article is written in Ukrainian
Downloads/views: 1

Download article (pdf) -

UDC 330.14.01:330.32

Abstract:
The article is aimed at theoretically identifying the essence of impact investments, i.e. investments that, in addition to financial returns, are directed towards social and environmental influence (effect) and which are an efficient instrument for solution of «failures» of both the market and the State. This category requires a closer definition, as practice develops faster than theory, there are contradictions in understanding the rate of returns and its assessment, efficient distribution of financial benefits and the social, environmental effects between stakeholders. It is generalized that investments relate to impact investments if targeted for significant social and environmental benefits; have a financial benefit; their influence is measurable; impact management is monitored and managed; there is accountability that demonstrates the achievement of social goals; successful experiences of social and environmental influence are being transmitted. Unlike philanthropy and socially oriented or socially responsible investments, they are focused on quantitative results (profitability), not limited in time, oriented towards the positive influence proactively. The following restrictions on the development of impact investment have been identified: traditional investment theories are not able to explain the motives and values of impact investment; desire to have a social or environmental impact does not mean that investors will do so; undeveloped infrastructure; the State actions can lead to both positive and negative externalizations; confidence is an important element, but this market is new, so the level of uncertainty and risk is high. It is proposed to form clear standards and practices on the identity of impact investments, ways and methods of assessing their influence, approaches to designing impact-investment products in accordance with the needs of different types of investors, regulation policies, incentives and removal of barriers in order to balance the interests of stakeholders.

Keywords: impact investment, investments to make impact, financial returns, social influence (effect), environmental influence (effect), impact-investment decisions.

Bibl.: 20.

Lomachynska Iryna A. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Economics and Entrepreneurship, Odesa I. I.Mechnikov National University (2 Dvorianska Str., Odesa, 65000, Ukraine)
Email: [email protected]

List of references in article

Lomachynska, I. A. “Tsinnosti ta investytsii vplyvu“ [Values and Impact Investments]. Ekonomika. Finansy. Biznes. Upravlinnia. Hlobalni ekonomichni vyklyky ta mozhlyvosti u tsyfrovu epokhu : materialy I Mizhnarodnoho ekonomichnoho forumu. 2019. http://dspace.onu.edu.ua:8080/bitstream/123456789/26067/1/48.pdf
“Global Impact Investing Network. Sizing the Impact Investing Market“. 2019. https://thegiin.org/assets/Sizing%20the%20Impact%20Investing%20Market_webfile.pdf
Niculescu, M. “Impact investment to close the SDG funding gap“. 2017. https://www.undp.org/content/undp/en/home/blog/2017/7/13/What-kind-of-blender-do-we-need-to-finance-the-SDGs-.html
“How Women and Men Approach Impact Investing“. The Women's Philanthropy Institute, May 2018. https://scholarworks.iupui.edu/bitstream/handle/1805/16229/Impact%20Investing%20Report%20FINAL.pdf
Review of the Academic and Practitioner Literature on Impact Investing. Literature Scan. Lee-Chin Institute. May, 2018.
Abt, W. “Almost Everything You Know About Impact Investing Is Wrong“. Stanford Social Innovation Review. December 18, 2018. https://ssir.org/articles/entry/almost_everything_you_know_about_impact_investing_is_wrong
Wood, D. et al. “Impact Investing: A Framework for Policy Design and Analysis“. Insight at Pacific Community Ventures & The Initiative for Responsible Investment at Harvard University, January 2011. http://www.pacificcommunityventures.org/wp-content/uploads/sites/6/2015/07/Impact_Investing_Policy_Full_Report.pdf
Rodin, J., and Brandenburg, M. The Power of Impact Investing: Putting Markets. Wharton Digital Press, 2014.
O'Donohoe, N. et al. “Impact Investments: An Emerging Asset Class“. The Rockefeller Foundation, 2010. https://thegiin.org/assets/documents/Impact%20Investments%20an%20Emerging%20Asset%20Class2.pdf
“Core Characteristics of Impact Investing“. GIIN. 2019. https://thegiin.org/characteristics
Mudaliar, A., and Dithrich, H. “Sizing the Impact Investing Market“. GIIN. April 2019. https://thegiin.org/assets/Sizing%20the%20Impact%20Investing%20Market_webfile.pdf
Barton, D. “The changing landscape of social-impact investing“. Interview Sir Ronald Cohen. Mckinsey, July 2017. https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/the-changing-landscape-of-social-impact-investing
Davies, G. B. “The Value of Being Human: A Behavioural Framework for Impact Investing and Philanthropy“. Philanthropy Impact Magazine. 2015. https://www.philanthropy-impact.org/sites/default/files/user-uploads/pi_magazine_14_pgs_15-18.pdf
French, Sh. “Understanding ESG Investing. Answers to advisors' and investors' most pressing questions about ESG“. 2017. https://www.etf.com/publications/etfr/understanding-esg-investing
Klein, G., and Shtudiner, Z. “Trust in Others: Does it Affect Investment Decisions?“ Quality and Quantity, vol. 50, no. 5 (2016): 1949-1967. DOI: https://doi.org/10.1007/s11135-015-0245-6
Payiatakis, D., and Brooks, P. “Investor motivations for impact: A behavioural examination“. Barclays, 2018. https://www.barclays.co.uk/content/dam/documents/wealth-management/investments/impact-investing-product/investor-motivations-for-impact.pdf
“Investing for Global Impact. 2018. First Anniversary Edition“. GIST, 2019. https://www.sereinprivate.com/theme-content/uploads/2019/05/Serein-FT-Investing-for-global-impact-2018-FullV.pdf
“What's Next: Building a trusted identity for the impact investing movement“. ImpactAlpha. 2018. https://impactalpha.com/whats-next-building-a-trusted-identity-for-the-impact-investing-movement/
Johnson, K., and Lee, H. “Impact Investing: A Framework for Decision Making. Cambridge Associates LLC, 2013“. https://thegiin.org/assets/documents/pub/impact-investing-a-framework-for-decision-making.pdf
Lomachynska, I. A. “Finansova hramotnist yak osnova optymizatsii finansovoi povedinky v umovakh hlobalnoi transformatsii“ [Financial Literacy as a Basis for Optimizing Financial Behavior in a Global Transformation]. Visnyk Odeskoho natsionalnoho universytetu. Seriia «Ekonomika», vol. 16, no. 20 (2011): 115-125.

FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

INFORMATION

The Plan of Scientific Conferences

OUR PARTNERS

Journal «The Problems of Economy»

The site and its metadata are licensed under CC BY-SA.

Write to webmaster