There is much talk about using financial markets as a tool to foster corporate social sustainability. One such movement is by integrating ESG into mainstream investment decision making. But is this working, in particular, what really is the role of financial markets in delivering sustainable outcomes?
This question reminds me of an article I read on HBR: I think this may be useful for your future research endeavours:
https://blogs.law.harvard.edu/corpgov/2013/12/28/the-corporate-social-responsibility-report-and-effective-stakeholder-engagement/
Hi,
You may be interested by this paper:
How persistent is private equity performance? Evidence from deal-level data
Journal of financial Economics, February 2017, Pages 273-291
Reiner Braun, Tim Jenkinson, Ingo Stoff
Best regards
Good question. Let’s look at the dynamics of the state, market and society. In some countries, the market will be close to the society. Let’s call them ‘free-market societies’. In other countries, the market is detested. So, when the market is detested, can a single actor change that image through corporate social responsibility? That is unlikely. However, if the action of the market actor comes at a time of societal distress, the impact could be noticeable. Distress induces stationarity in a dynamical space. Consequently, an actor can set a trajectory and drive it. How long can that regime of stability last? Global excitations cannot allow us answer that question meaningfully. Cf. Preprint Public-Private Partnerships on the Limit Cycle: Excitation o...
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