Impact Investing
نویسندگان
چکیده
We show that investors derive utility from non-pecuniary characteristics of investments by studying impact funds, defined as venture or growth equity funds with dual objectives of generating financial returns and positive externalities. Impact funds earn internal rates of return that are 4.7% less than traditional VC funds in reduced form regressions. Based on estimates of a willingness to pay (WTP) model derived from a utility framework, investors accept 3-4% lower returns for impact funds. Development organizations, banks, and public pension funds have the greatest WTP; endowments and private pensions have negligible WTP. Europeans and UNPRI signatories have larger WTPs. Mapping WTP to investor preferences for and hindrances against impact investing, we find that mission-oriented objectives and political pressure to invest locally increase the WTP for impact and legal restrictions (e.g. ERISA) decrease it. JEL classification: G11, G21, G22, G23, G24, G28, H41, M14
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تاریخ انتشار 2017