The Financial Side of the Social Impact Bond: The Determinants of the Returns

Rachele Hyerace, Maria Mazzuca () and Sabrina Ruberto
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Rachele Hyerace: University of Calabria
Maria Mazzuca: University of Calabria
Sabrina Ruberto: University of Florence

Chapter Chapter 7 in Contemporary Issues in Sustainable Finance, 2023, pp 171-186 from Palgrave Macmillan

Abstract: Abstract Using a financial lens, we study which factors affect the financial return of a Social Impact Bond (SIB). The hypothesis underlying our empirical strategy is that the SIBs’ diffusion also depends on their attractiveness for the investors that, in turn, typically depends on the (financial) return. However, SIBs are very special schemes that permit to achieve social outcomes using the structured finance. Therefore, it is plausible to imagine that their financial return is blended with a social return. It becomes interesting to investigate the determinants of the financial return to shed light on the interest and the role of the (traditional) finance in these (social finance) schemes. We develop an empirical analysis considering an extensive sample of 181 SIBs since 2010 and using an original dataset. The results are mixed. Overall, findings suggest that these schemes function according to logics different from those driving the other financial schemes/instruments.

Keywords: Social impact bond; Investor; Sustainable investor; Social impact finance; Sustainable finance (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psifcp:978-3-031-22539-0_7

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DOI: 10.1007/978-3-031-22539-0_7

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