Tag Archives: Finance

Economy & Society, Finance & Insurance, Short Research Stories

Wealth inequality: Parental influence on attitudes to financial risk taking

The Issue

Wealth inequality is a major global issue – the richest 10% of the world’s’ population hold some 75% of all wealth. One important factor is stock market participation. Over time and on average, stock market investors, long term holders of index tracker funds for example, end up wealthier than those who put their money on deposit. Yet, despite the proven benefits, many people are reluctant to invest in the stock market.

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Corporate Strategy & Business development, Economy & Society

Maximizing the benefits from R&D subsidies: How some enterprise support policies can discourage high-growing entrepreneurship

Many governments offer support for entrepreneurs in a bid to boost entrepreneurship and startup success. However, as Annamaria Conti shows, both policymakers and entrepreneurs need to thoroughly assess the impact of that support to ensure that it is having the desired effect.

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Finance & Insurance

The effect of screening for environmental, social and governance performance on passive and smart beta investing strategies

Using environmental, social, and governance (ESG) scores of firms belonging to the MSCI World universe, we measure the impact of score-based exclusion on both passive investment and smart beta strategies. We find that exclusion leads to improved scores of otherwise standard portfolios without deterioration of their risk-adjusted performance. Smart beta strategies exhibit a similar pattern, often in a more pronounced way. Moreover, our results demonstrate that exclusion also implies regional and sectoral tilts as well as (possibly undesirable) risk exposures of the portfolios.

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