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The investor's participation in social impact bonds

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  • Mazzuca, Maria
  • Panzera, Elena
  • Ruberto, Sabrina

Abstract

Considering 181 Social Impact Bonds (SIBs) until 2020, we study the factors impacting on the number of investors, those influencing the institutional investor's participation, and the determinants of the philanthropic investor's commitment. We find that the risks of the projects are shared by several investors, the institutional investors are more attracted by less risky SIBs, the commitment of philanthropic investor translates into a greater investment. SIBs prove more attractive to non-mainstream investors. Results permit the exclusion of a social washing phenomenon in the SIBs' world and could be a starting point for harmonizing the controversial positions of academics on SIBs.

Suggested Citation

  • Mazzuca, Maria & Panzera, Elena & Ruberto, Sabrina, 2023. "The investor's participation in social impact bonds," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 349-363.
    • Handle: RePEc:eee:reveco:v:86:y:2023:i:c:p:349-363
    DOI: 10.1016/j.iref.2023.03.017
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    More about this item

    Keywords

    Social impact bond; Investor; Sustainable investor; Sustainable finance;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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