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Social Uncertainty Evaluation of Social Impact Bonds: A Model and Practical Application

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  • Francesco Rania

    (Department of Law, Economics and Sociology, University Magna Graecia of Catanzaro, Campus Germaneto, Viale Europa, 88100 Catanzaro, Italy)

  • Annarita Trotta

    (Department of Law, Economics and Sociology, University Magna Graecia of Catanzaro, Campus Germaneto, Viale Europa, 88100 Catanzaro, Italy)

  • Rosella Carè

    (Department of Economics and Business, University of Cagliari, Viale S. Ignazio 17, 09125 Cagliari, Italy)

  • Maria Cristina Migliazza

    (Department of Law, Economics and Sociology, University Magna Graecia of Catanzaro, Campus Germaneto, Viale Europa, 88100 Catanzaro, Italy)

  • Abdellah Kabli

    (Department of Law, Economics and Sociology, University Magna Graecia of Catanzaro, Campus Germaneto, Viale Europa, 88100 Catanzaro, Italy)

Abstract

In the last years, Social Impact Bonds (SIBs) have gained popularity in the impact investing space. A number of scholars and practitioners are debating—in theory and practice—the opportunities, challenges and obstacles of these financial models. Amongst others, social uncertainty evaluation metrics appear as a critical factor for the future development of the SIB market. The present work aims to shed some light on this issue, by realizing a practical application of a model—which is an extension of a framework previously proposed—for social uncertainty evaluation in SIBs. In our exploratory analysis, 34 SIBs were selected for the empirical tests. We combined the Analytic Hierarchical Process (AHP) with the creation of aggregate measure, deriving by suitable indicators at the end of the tree. Our findings open new avenues for future research in the field of uncertainty factors in the SIB landscape. Finally, our results represent a basis for implementing a prediction model for social uncertainty evaluation.

Suggested Citation

  • Francesco Rania & Annarita Trotta & Rosella Carè & Maria Cristina Migliazza & Abdellah Kabli, 2020. "Social Uncertainty Evaluation of Social Impact Bonds: A Model and Practical Application," Sustainability, MDPI, vol. 12(9), pages 1-34, May.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:9:p:3854-:d:355577
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    References listed on IDEAS

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    2. Abdellah Kabli & Alessandro Rizzello & Annarita Trotta, 2021. "Roadmapping New Impact Bonds in a Post-COVID World: Insights from Case Studies in the Education Sector," Sustainability, MDPI, vol. 13(8), pages 1-16, April.
    3. Alessandro Rizzello & Abdellah Kabli, 2020. "Sustainable Financial Partnerships for the SDGs: The Case of Social Impact Bonds," Sustainability, MDPI, vol. 12(13), pages 1-22, July.
    4. Annebeth Roor & Karen Maas, 2024. "Do impact investors live up to their promise? A systematic literature review on (im)proving investments' impacts," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3707-3732, May.
    5. Rosella Carè & Francesco Rania & Riccardo De Lisa, 2020. "Critical Success Factors, Motivations, and Risks in Social Impact Bonds," Sustainability, MDPI, vol. 12(18), pages 1-17, September.
    6. Carmen Elena Anton & Alexandra Zamfirache & Ruxandra-Gabriela Albu & Titus Suciu & Sergiu Mihai Sofian & Oana-Andreea Ghiță-Pîrnuță, 2024. "Sustainable Entrepreneurship: Romanian Entrepreneurs’ Funding Sources in the Present-Day Context of Sustainability," Sustainability, MDPI, vol. 16(2), pages 1-29, January.

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