Corporate Social Responsibility and Corporate Governance
The Corporate Social Responsibility and Corporate Governance research aims to answer the following questions:
- Does corporate social responsibility drive financial outperformance?
- Do superior environmental, social, and governance standards of corporations lead to superior financial performance?
- How does sustainability and CSR on a portfolio level translate into value creation for clients?
- What would be the effects of superior governance quality on the financial and accounting performance of investee firms?
We discover new long-term investment opportunities: Infrastructure, impact investing and private equity:
- What is impact investing and what would a market for impact investing look like?
- What is the investment case for impact investing?
- How would impact investing fit into institutional investors' investment portfolios?
- Are large-scale infrastructure projects a kind of a new asset class?
- Are private equity investments a useful channel to promote sustainability?
Long-Term Investing Approaches
Within the specific research area of long-term investing, the Smith School provides research in the areas of long-term investment approaches, sustainable investing, active ownership, and institutional asset management. Core questions that our research addresses are:
- What do long-term investment approaches look like? Which roles do sustainable and/or responsible investing play in this context? Which role does 'active ownership' play for responsible investment?
- How can asset owners and asset managers use active ownership strategies to promote more sustainability and corporate social responsibility at investee firms?
- Which active ownership mechanisms do institutional investors have at their disposal?
- How can institutional investors - both asset owners and managers - benefit from active ownership? Are there risk-return implications?
We identify the challenges for the financial industry that arise out of resource scarcity and climate change:
- How can the financial industry cope with the upcoming challenges of climate change, demographical changes, and/or depletion of natural resources?
- How do climate change and resource scarcity affect institutional investors' investment portfolios?
- What will a sustainable investment portfolio in the year 2050 look like?
- Which effects do these global challenges have on institutional investors' asset-liability management (ALM) models? Can new mathematical and statistical models ensure a better and more accurate ALM?
The Long-Term Investment research group thus provides outstanding academic and practitioner-related research on the important issues of sustainability, responsible investment, corporate social responsibility, and climate change that impose risks but also opportunities on the financial industy.