Journal ArticleDOI
Finance or philanthropy? Exploring the motivations and criteria of impact investors
TLDR
In this paper, a partially inductive study based on semi-structured interviews with 31 investors and ethnographic observation was conducted to explore how impact investors differ from other classes of investors in their motivations and unique criteria used to evaluate ventures seeking investment.Abstract:
The growing prevalence of social entrepreneurship has been coupled with an increasing number of so-called “impact investors”. However, much remains to be learned about this nascent class of investors. To address the dearth of scholarly attention to impact investing, this study seeks to answer four questions that are central to understanding the phenomenon. What are the defining characteristics of impact investing? Do impact investors differ from traditional classes of investors and, if so, how? What are the motivations that drive impact investment? And, what criteria do impact investors use when evaluating potential investments?,A partially inductive study based on semi-structured interviews with 31 investors and ethnographic observation was conducted to explore how impact investors differ from other classes of investors in their motivations and unique criteria used to evaluate ventures seeking investment.,This study reveals that impact investors represent a unique class of investors that differs from socially responsible investing, from other types of for-profit investors, such as venture capitalists and angel investors, and from traditional philanthropists. The varied motivations of impact investors and the criteria they use to evaluate investments are identified.,Despite the growing practitioner and media attention to impact investing, several foundational issues remain unaddressed. This study takes the first steps toward shedding light on this new realm of early-stage venture investing and clarifying its role in larger efforts of social responsibility.read more
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Journal ArticleDOI
Impact investing: review and research agenda
Anirudh Agrawal,Kai Hockerts +1 more
TL;DR: In the last few years, the investment in impact investing has grown many folds, however, the research has not kept pace with the growing pace of impact investing as discussed by the authors, which is an emerging alternative asset class.
Journal ArticleDOI
Social entrepreneurship and entrepreneurial ecosystems: Complementary or disjoint phenomena?
TL;DR: In this article, a theory is proposed to explain the interrelationship between entrepreneurial ecosystems and social entrepreneurship, and it is theorized that entrepreneurial ecosystems will influence the operations and effectiveness of social entrepreneurs through mechanisms such as the ecosystem's diversity of resource providers, support infrastructure, entrepreneurial culture, and learning opportunities.
Journal ArticleDOI
Inching to Impact: The Demand Side of Social Impact Investing
TL;DR: In this article, the authors analyze the perceived barriers faced by nonprofits in engaging with social impact investing, arguing the need to assess differences using a policy field framework, and find that significant barriers are a lack of knowledge of the market, inadequate financial literacy, and the challenges of measuring and valuing social impacts.
Journal ArticleDOI
Impact Investing Strategy: Managing Conflicts between Impact Investor and Investee Social Enterprise
Anirudh Agrawal,Kai Hockerts +1 more
TL;DR: In this paper, a case-based study of impact investing and social enterprises is presented, which shows that social mission plays an important moderating role in the inter-organizational relationship between the impact investor and the investee social enterprise, and an emphasis on due diligence, sector specialization, and communication increases the likelihood of investment.
Journal ArticleDOI
Perspectives in ESG equity investing
TL;DR: In this article, the authors synthesize recent academic results and models on socially responsible investing (SRI) in equity markets and split their review into six thematic parts: data issues, investor preferences, link with financial performance, portfolio integration, climate change risk, and theoretical models.
References
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Related Papers (5)
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