Theme
Impact Investing

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"This paper contributes to VC network literature in providing a unique network structure and network metrics of venture capital in SEA. In managerial contribution, this study provides more structural VC cooperation towards VC syndication networks. This benefits to venture capital firms who are looking for potential partners in Southeast Asian region and start-up companies who are looking for funding with high-networked or influencial VCs. The results also confirm previous evidence of significance on VC networks in emerging market, even if the institution and regulation are claimed to fall behind that in the developed market. This research introduces the fact that the venture capital network in Southeast Asia has small-world pattern and Singapore acts as a hub of venture capital market in the region."

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"This paper investigates the impact of economic policy uncertainty (EPU) on the corporate philanthropy (CP) behaviors of firms using a dataset from Chinese A-share listed firms. We find that, on average, firms decrease their CP significantly when economic policy uncertainty increases, but the response is heterogeneous for firms with different ownership types. Compared with their counterparts, private firms are willing to contribute more donations in an environment with high economic policy uncertainty. Further analysis shows that private firms take on more other types of corporate social responsibility at the same time, and private firms' additional CP in a high EPU environment is rewarded with more subsidies, indicating that altruistic and political motives may play important roles in driving the CP behaviors of private firms."

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"Using geographical distribution data on corporate philanthropy in China from 2009 to 2016, we provide robust evidence of companies’ revenue-driven regional favoritism. Specifically, companies donate more to regions where they obtain revenue than to other regions. Further evidence suggests that this revenue-driven regional favoritism may have both reputational and political motivations. Further analysis suggests that China’s targeted poverty alleviation policy has compromised revenue-driven regional favoritism while increasing the amount of money donated to poor regions. Overall, we enrich understanding of decision-making on corporate philanthropy. We also demonstrate that companies can use the geographical distribution of corporate philanthropy strategically to obtain consumer and government favor in regions where they operate."

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"The diversity-led organizations, that are more often addressing equity-deserving communities, received philanthropic support three times less often, and support from less funders than the conventional-led organizations. These results demonstrate that environmental philanthropy in Canada favors a large set of established organizations and perpetuates a landscape of exclusion for diversity-led organizations working on the low-carbon energy transition. By perpetuating disparities through funding, philanthropy is reinforcing inequities among marginalized communities. This in turn is setting back the progress of equity in low-carbon energy transitions in Canada."

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"Microinsurance emerged out of different but parallel debates about the reformulation and expansion of social protection amidst the devastation of structural adjustment. It was, at least in its initial articulations, explicitly counterposed to the ‘market’-based solutions proffered by the World Bank, the IMF, and their allies. Yet, by the early 2000s, microinsurance and microcredit were being promoted in strikingly similar terms to the approaches they had initially opposed, and by the same actors."

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"Holding several factors constant, we conclude that receiving continuous loans from ACME had some positive effects on Haitian businesses. We find a positive impact on business expansion through various outcomes. Compared to new clients, firms that had completed at least three loan cycles had a higher probability of hiring new workers in 2018 and of increasing their merchandise stock. They also reported higher profits and savings. The results also highlight the gender-differentiated impact of microloans on businesses. Although ACME loans are critical in helping women open new outlets, the outcomes of increasing stock and adding new services are found only among male-owned businesses."

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June 11, 2024

The 2024 "Sustainable Signals" reports 77% of investors seek investments considering positive social or environmental impact.

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"This paper examines how Impact Investment (II) becomes part and transforms structured accumulation regimes and circuits, with a particular emphasis on South Africa's agricultural sector. Through the joint implementation of a macro study of the South African II circuits, and a micro study of a particular II fund’s practices and impacts, the paper develops an in-depth political economy assessment of II circuits in order to historicize these circuits, to map the South African II community, and to characterize the power balances presently structuring it. Rather than highlighting ruptures, it draws the attention to the historical continuities and path-dependencies as II related tools are rooted into older financial practices, shaping today's II development and practice - hence questioning II as a tool for empowerment."

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"The necessity to mobilize capital on a localized or regionalized basis has been labeled Place-Based Impact Investing. This article will review the research and conclusions that have fueled the need for Place-Based Impact Investing, identify the current thought leaders, and describe some of the early efforts at mobilizing "legacy capital" into communities to support the growing but underfunded innovative companies. We also will explore some of the new methods, vehicles, and overlooked tax laws that can accelerate the mobilization of capital on a more geographic and meritocratic manner."

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"The paper provides empirical evidence on impediments of the emerging social impact investment field in Germany. The study is based on 19 in-depth interviews with social impact investing funds, investment advisors, and social entrepreneurs as investees. It takes an explorative approach because of the nascent stage of research on the subject. By systematically relating the perspectives of the actors involved, the study gives a broad empirical picture on the major challenges for social impact investing in Germany. Results reveal nine critical problem areas we have arranged along three dimensions: financial returns, social returns, and relationships and infrastructure."

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