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Article
Publication date: 29 March 2024

Waleed Hemdan and Jian Zhang

This study investigates how to motivate behavioral intentions toward green investment (BIGI) with the moderating effect of social media platforms usage (SMPU) among individual…

Abstract

Purpose

This study investigates how to motivate behavioral intentions toward green investment (BIGI) with the moderating effect of social media platforms usage (SMPU) among individual investors in Egypt.

Design/methodology/approach

The study used partial least squares structural equation modeling (PLS-SEM) to analyze the data and test hypotheses based on a sample of 550 individual investors with investment experience.

Findings

The results show that attitude, subjective norm (SN), and perceived behavioral control (PBC) have a significant relationship with investors' behavioral intention toward green investment. The moderating effect of (SMPU) supported the relationship between (SN), (PBC), and (BIGI), but (SMPU) does not support the relationship between attitude and (BIGI).

Practical implications

This study provides some implications for investment providers, service providers, and policymakers.

Originality/value

Despite the increasing global interest in climate change and its consequent opportunities and challenges for business, previous studies did not strongly emphasize green investment. So, based on the theory of planned behavior (TPB), this study sheds light on the motivational factors that may push investors' behavioral intentions toward green investment. With the increasing interest in digital transformation, the study also examined how digital platforms support (BIGI), especially in Egypt as a developing country.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 12 April 2023

Chandra Shekhar Bhatnagar, Dyal Bhatnagar, Vineeta Kumari and Pritpal Singh Bhullar

Increasing focus on socially responsible investments (SRIs) and green projects in recent times, coupled with the arrival of COVID pandemic, are the main drivers of this study. The…

Abstract

Purpose

Increasing focus on socially responsible investments (SRIs) and green projects in recent times, coupled with the arrival of COVID pandemic, are the main drivers of this study. The authors conduct a post-factum analysis of investor choice between sin and green investments before and through the COVID outbreak.

Design/methodology/approach

A passive investor is introduced who seeks maximum risk-adjusted return and/or investment variance. When presented an opportunity to add sin and/or green investments to her initial one-asset market-only investment position, she views and handles this issue as a portfolio problem (MPT). She estimates value-at-risk (VaR) and conditional-value-at-risk (CVaR) for portfolios to account for downside risk.

Findings

Green investments offer better overall risk-return optimization in spite of major inter-period differences in return-risk dynamics and substantial downside risk. Portfolios optimized for minimum variance perform just as well as the ones optimized for minimum downside risk. Return and risk have settled at higher levels since the onset of COVID, resulting in shifting the efficient frontier towards north-east in the return-risk space.

Originality/value

The study contributes to the literature in two ways: One, it examines investor choice between sin and green investments during a global health emergency and views this choice against the one made during normal times. Two, instead of using the principles of modern portfolio theory (MPT) explicitly for diversification, the study uses them to identify investor preference for one over the other investment type. This has not been widely done thus far.

Article
Publication date: 17 July 2023

Valerio Brescia, Paolo Esposito, Stefano Amelio and Paolo Pietro Biancone

The COVID-19 pandemic has generated a crisis that has hit the European economy and the currently existing systems. To cope with the crisis, Europe has started an investment aiming…

Abstract

Purpose

The COVID-19 pandemic has generated a crisis that has hit the European economy and the currently existing systems. To cope with the crisis, Europe has started an investment aiming the energy transition and crisis. Portugal, Spain and Greece have received the approval of their National Recovery Plans from the European Commission, with a definition of spending up to 2026 through the European Union (EU) Next Generation Found. The study investigates whether the Green Deal policies are relaunched by the plans financed and whether the pandemic has changed and conditioned the priorities of the energy transaction. The study uses the lens of corporate social responsability (CSR) and relapse measurable across the Sustainable Development Goals (SDGs).

Design/methodology/approach

The Green Deal policies supported by new European investments in the three countries were analyzed through a content analysis (CA) technique to investigate the associated practical and theoretical elements.

Findings

The energy theme has a relevance compared to other issues in the investment plans envisaged in Greece, Portugal and Spain. The analysis highlights energy efficiency, sustainable energy and reduction of consumption among the main themes. Energetically, sustainable building plays a central role. The study highlights the relationship between Green Deal policies, CSR, SDGs and management tools adopted.

Originality/value

The study strengthens the relationship between the Green Deal, CSR and SDGs by identifying policies that have already been implemented and theoretical and practical gaps on which politicians and scholars will have to investigate and support in the process of development and continuity of the identified pillars.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 4 January 2023

Pan Liu

To study these issues, the authors chose a GFSC with one producer and one material supplier as research object, the supplier will offer green material to the producer and the…

Abstract

Purpose

To study these issues, the authors chose a GFSC with one producer and one material supplier as research object, the supplier will offer green material to the producer and the producer will make green food using green production technology. Then, the authors proposed that consumers' perceived value was determined by the trustworthiness levels of the related green and quality-safety information provided by the supplier and the producer. Then, considering the trustworthiness levels of the green and quality information provided by the supplier and the producer, the authors improved the demand function. Afterwards, we constructed four investment models and their income models are built and then a cost-sharing and revenue-sharing contract (hereafter, CSRS) was adopted to coordinate the GFSC.

Design/methodology/approach

With the growth of consumers environmental awareness and life level, consumers' requirements for green and high quality food are growing. In recently years, to increase consumers' perceived trustworthiness on the product greenness and quality levels, stakeholders in green food supply chain (hereafter, GFSC) start to adopt the blockchain-based traceability system (hereafter, BLTS). For investors, they need to know the investment conditions and how to coordinate the GFSC.

Findings

(1) When the revenue-sharing coefficient is less than three-fourths and higher then a certain vaule, the cost-sharing and revenue-sharing contract can make the GFSC coordinate. (2) The investment cost threshold of the BLTS has a positive relationship with the trustworthiness improvement levels of the green and quality information, the green degree of food products and the quality of food products. (3) In the proposed four investment situations, as the growth of consumers perceived credibility coefficient about the greenness information and the quality information, chain members' revenues will increase. In addition, comparing with co-investing the BLTS, benefits of chain members are lower than them in the sole investment model.

Originality/value

(1) The demand function we proposed can help chain members forecast market demand to support production or ordering decisions. (2) The investment decision policies can offer a theoretical reference for chain members to use the BLTS. (3) The CSRS will offer the theoretical reference for coordinating the supply chain after using the BLTS. Furthermore, our study method can be referenced by other scholars. (4) The study method can offer a method reference for researchers who do a similar discussion in a manufacturing supply chain. Although, our research cannot guide the industrial practices, it can serve as a reference of the similar research in industry.

Details

Kybernetes, vol. 53 no. 3
Type: Research Article
ISSN: 0368-492X

Keywords

Abstract

Details

Responsible Investment Around the World: Finance after the Great Reset
Type: Book
ISBN: 978-1-80382-851-0

Article
Publication date: 16 April 2024

Mahadi Hasan Miraz and Tiffany Sing Mei Soo

The objective of this study is to examine the various factors that exert an influence on the green economy. This study also investigates the impact of foreign direct investment…

Abstract

Purpose

The objective of this study is to examine the various factors that exert an influence on the green economy. This study also investigates the impact of foreign direct investment (FDI) on the Malaysian economy, specifically focusing on its position as a mediator. This research also examines the correlation between FDI and its influence on the contemporary green economy.

Design/methodology/approach

The authors employed quantitative methodologies and a self-administered survey to evaluate data and derive a definitive conclusion. The result was constructed using SPSS and SEM-PLS as the analytical software.

Findings

The study reveals that technological advancement, investment country and government policy significantly and positively affect the green economy, catalyse SDG goals and restructure the economy in better shape.

Originality/value

The current empirical research bridges the research gap in the context of technology advancement in government policy from emerging economies by exploring important factors, proposing their impact on the performance of the green economy, and empirically testing those hypothesized relationships. This study deciphers that FDI influences the green economy, where the investment country plays a significant role. Also, for a graphical presentation of this abstract, see the online appendix.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 12 June 2023

Jilin Tian

This paper analyzes the effect of the Belt and Road Initiative (BRI) on firm green innovation upgrading using data on Chinese firms between 2009 and 2021.

Abstract

Purpose

This paper analyzes the effect of the Belt and Road Initiative (BRI) on firm green innovation upgrading using data on Chinese firms between 2009 and 2021.

Design/methodology/approach

The author adopts the staggered difference-in-difference (DID) method to estimate regressions, treating the proposal of the BRI in 2013 as a policy shock. Our analysis yields few findings.

Findings

The author yields few findings. First, the BRI can significantly promote Chinese firms green innovation upgrading. Specifically, the BRI can promote firm green innovation upgrading by 0.9%. Second, the BRI mainly promotes firms green innovation upgrading by promoting firms to increase green entrepreneurship, cooperative innovation and environmental investment. Finally, the BRI has a greater impact on the green innovation upgrading of firms in the digital industrialization industry rather than digital industry and firms with low pollution emissions rather than firms with high-pollution emissions. This research indicates that the BRI is not only an important platform for sustainable development and also an important opportunity for green entrepreneurship.

Research limitations/implications

First, due to the low quality of data and the lack of detailed information on some firms' patents owned after 2018, fully applying data of all years for regression was not possible. Second, the author did not construct a theoretical model to explore the impact of the BRI on green innovation upgrading of firms from the perspective of outward foreign direct investment (OFDI), which is also the direction of future research. Finally, there are still some unexplored mechanisms of the BRI on firms green innovation upgrading, which should be further explored in the future.

Originality/value

First, from the micro perspective, the author measures the quality of firms' green patents, further measuring the firms' green innovation upgrading. Second, the author discusses the impact of the BRI on firm green innovation upgrading with the method of staggered DID, so that the policy effect of the BRI can be more accurately evaluated. Third, the author comprehensively analyzes the mechanism of cooperative innovation and green infrastructure investment, as well as analyzing the heterogeneity from the perspective of industry digital transformation and firm pollution emissions. Lastly, the author provides specific paths for firms to make high-quality investment from the green BRI construction.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 14 March 2023

Donghui Li, Yingdong Liu, Minxing Sun, Xinjie Wang and Weike Xu

This paper aims to answer three questions: (1) Which countries invest more capital in green firms? (2) What kind of industries do venture capitals (VCs) invest in? (3) Do VCs…

Abstract

Purpose

This paper aims to answer three questions: (1) Which countries invest more capital in green firms? (2) What kind of industries do venture capitals (VCs) invest in? (3) Do VCs invest more capital in green firms?

Design/methodology/approach

First, the authors provide summary statistics of the key variables for green and non-green firms. Then the authors use figures to plot the growth of green firms over time. Next, the authors use descriptive data to study VC-invested firms for the top 10 countries and industries for all firms, green firms and non-green firms. Finally, the authors compare the VC investors' characteristics and investment behavior between green and non-green firms.

Findings

This study documents that venture-backed investments in clean technologies have increased dramatically in the number of deals and in the total amount of dollar volume over time. This paper provides evidence that VC firms invest more in green firms in each deal than in non-green firms. The United States and European countries play an important role in funding clean technologies across countries, and this study’s results suggest that VC investors play a considerable role in shaping the development of green finance.

Originality/value

This paper makes the first attempt to investigate the role of VCs in clean technologies to support carbon neutrality, providing initial evidence on venture capitalists' investment efforts towards carbon neutrality. The paper also has practical implications for start-up firms that raise capital and venture capitalists who finance green start-ups.

Details

China Finance Review International, vol. 14 no. 1
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 10 October 2022

Muhammad Abubakr Naeem, Sitara Karim, Mustafa Raza Rabbani, Abu Bashar and Satish Kumar

Growing attention of policymakers, governments and regulation authorities towards climate change and global warming has spurred the extensive need to carefully examine the current…

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Abstract

Purpose

Growing attention of policymakers, governments and regulation authorities towards climate change and global warming has spurred the extensive need to carefully examine the current practices of green and sustainable finance. This study aims to provide a comprehensive analysis on the current state and future directions of green and sustainable finance through bibliometric analysis.

Design/methodology/approach

For extensive bibliometric analysis, the study comprises 1,413 documents published in peer-reviewed journals indexed in the SCOPUS database for the period ranging from 1990 to 2021.

Findings

The authors find that there are mainly three key areas of green and sustainable finance, which are largely addressed by the scholars following the given time. The key areas include socially responsible investments, green finance and climate finance that are in line with the previous studies and existing trends and practices prevailing in the business and corporate world.

Practical implications

The findings are important for policymakers, regulatory bodies, upcoming scholars, environmentalists and investors as findings of the study provide an effective framework for adopting sustainable strategies, to trade-off between profits and environmental hazards and to generate value from the green avenues of research and practice.

Originality/value

The study offers novel contributions to the existing literature in terms of comprehensively providing evidence of the current practices of green and sustainable finance. Meanwhile, significant implications for the prospective audience further refine the contribution of research.

Details

Qualitative Research in Financial Markets, vol. 15 no. 4
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 8 January 2024

Marcellin Makpotche, Kais Bouslah and Bouchra M’Zali

This study aims to exploit Tobin’s Q model of investment to examine the relationship between corporate governance and green innovation.

Abstract

Purpose

This study aims to exploit Tobin’s Q model of investment to examine the relationship between corporate governance and green innovation.

Design/methodology/approach

The study is based on a sample of 3,896 firms from 2002 to 2021, covering 45 countries worldwide. The authors adopt Tobin’s Q model to conceptualize the relationship between corporate governance and investment in green research and development (R&D). The authors argue that agency costs and financial market frictions affect corporate investment and are fundamental factors in R&D activities. By limiting agency conflicts, effective governance favors efficiency, facilitates access to external financing and encourages green innovation. The authors analyzed the causal effect by using the system-generalized method of moments (system-GMM).

Findings

The results reveal that the better the corporate governance, the more the firm invests in green R&D. A 1%-point increase in the corporate governance ratings leads to an increase in green R&D expenses to the total asset ratio of about 0.77 percentage points. In addition, an increase in the score of each dimension (strategy, management and shareholder) of corporate governance results in an increase in the probability of green product innovation. Finally, green innovation is positively related to firm environmental performance, including emission reduction and resource use efficiency.

Practical implications

The findings provide implications to support managers and policymakers on how to improve sustainability through corporate governance. Governance mechanisms will help resolve agency problems and, in turn, encourage green innovation.

Social implications

Understanding the impact of corporate governance on green innovation may help firms combat climate change, a crucial societal concern. The present study helps achieve one of the precious UN’s sustainable development goals: Goal 13 on climate action.

Originality/value

This study goes beyond previous research by adopting Tobin’s Q model to examine the relationship between corporate governance and green R&D investment. Overall, the results suggest that effective corporate governance is necessary for environmental efficiency.

Details

Review of Accounting and Finance, vol. 23 no. 2
Type: Research Article
ISSN: 1475-7702

Keywords

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