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.