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Social Risk and Financial Returns: Evidences from Social Impact Bonds

  • Elisabetta Scognamiglio
  • Alessandro Rizzello
  • Helen ChiappiniEmail author
Chapter
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Part of the Palgrave Studies in Impact Finance book series (SIF)

Abstract

This chapter provides an empirical insight into factors characterizing social risk of social impact bonds (SIBs) and explores the correlation between social risk and financial return. In order to achieve this research aim, the methodology is organized in three different steps: (1) step one includes the implementation of a scoring model for SIB social risk; (2) step two involves data collection and the measurement of social risk scoring components; and (3) the last step tests for a correlation between social risk and financial returns of SIBs. The sample is composed of 34 SIBs that share information publically. Empirical findings show that most SIBs have a medium score of social risk, while social risk and financial return are not significantly correlated.

Keywords

Social impact bonds Social impact investments Social risk Financial return of SIBs 

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Elisabetta Scognamiglio
    • 1
  • Alessandro Rizzello
    • 2
  • Helen Chiappini
    • 3
    Email author
  1. 1.Federico II University of NaplesNaplesItaly
  2. 2.University Magna Graecia of CatanzaroCatanzaroItaly
  3. 3.G. d’Annunzio University of Chieti and PescaraPescaraItaly

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