Killing Two Birds with One Stone? Sound Investment with Social Impact

Tea Gamtkitsulashvili, A. Plekhanov, A. Stepanov
{"title":"Killing Two Birds with One Stone? Sound Investment with Social Impact","authors":"Tea Gamtkitsulashvili, A. Plekhanov, A. Stepanov","doi":"10.2139/ssrn.3790680","DOIUrl":null,"url":null,"abstract":"This paper uses a novel dataset on investments by the European Bank for Reconstruction and Development to quantify a (sizeable) trade‐off between the impact and financial objectives of a large lender. The unique feature of this dataset is ex ante records of impact. These are made at the early stages of work on each transaction alongside probability‐of‐default scores. Impact scores are further updated at the final approval stage with around 55 percent of transaction concepts translating into signed deals. We show that this approach delivers a simultaneous selection of debt investments on the quality of credit and impact with a sizable trade‐off between pursuing commercial and development objectives. For commercially riskier investments, impact characteristics have a greater bearing on the probability of an investment going ahead. We further use machine‐learning analysis to show that the impact of some investments is strengthened prior to project approval.","PeriodicalId":225158,"journal":{"name":"European Bank for Reconstruction & Development Research Paper Series","volume":"28 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"European Bank for Reconstruction & Development Research Paper Series","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.3790680","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0

Abstract

This paper uses a novel dataset on investments by the European Bank for Reconstruction and Development to quantify a (sizeable) trade‐off between the impact and financial objectives of a large lender. The unique feature of this dataset is ex ante records of impact. These are made at the early stages of work on each transaction alongside probability‐of‐default scores. Impact scores are further updated at the final approval stage with around 55 percent of transaction concepts translating into signed deals. We show that this approach delivers a simultaneous selection of debt investments on the quality of credit and impact with a sizable trade‐off between pursuing commercial and development objectives. For commercially riskier investments, impact characteristics have a greater bearing on the probability of an investment going ahead. We further use machine‐learning analysis to show that the impact of some investments is strengthened prior to project approval.
一石二鸟?具有社会影响的稳健投资
本文使用欧洲复兴开发银行的投资新数据集来量化大型贷款机构的影响和财务目标之间的(相当大的)权衡。这个数据集的独特之处在于对影响的事前记录。这些是在每笔交易的早期阶段与违约概率分数一起进行的。影响分数在最终审批阶段进一步更新,约55%的交易概念转化为签署的交易。我们表明,这种方法提供了对信贷质量和影响的债务投资的同时选择,在追求商业和发展目标之间进行了相当大的权衡。对于商业风险较高的投资,影响特征对投资进行的概率有更大的影响。我们进一步使用机器学习分析表明,在项目批准之前,一些投资的影响得到了加强。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
自引率
0.00%
发文量
0
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:604180095
Book学术官方微信