Impact Investing

Brad M. Barber, Adair Morse, Ayako Yasuda

We document that investors derive nonpecuniary utility from investing in dual-objective VC funds, thus sacrificing returns. Impact funds earn 4.7 percentage points (ppts) lower IRRs ex post than traditional VC funds. In random utility/willingness-to-pay (WTP) models investors accept 2.5-3.7 ppts lower IRRs ex ante for impact funds. The positive WTP result is robust to fund access rationing and investor heterogeneity in fund expected returns. Development organizations, foundations, financial institutions, public pensions, Europeans, and UNPRI signatories have high WTP. Investors with mission objectives and/or facing political pressure exhibit high WTP; those subject to legal restrictions (e.g., ERISA) exhibit low WTP

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Year of publication:	December 2019
Authors:	Barber, Brad M.
Other Persons:	Morse, Adair (contributor) ; Yasuda, Ayako (contributor)
Institutions:	National Bureau of Economic Research (contributor)
Publisher:	2019: Cambridge, Mass : National Bureau of Economic Research
Subject:	Investitionsentscheidung \| Investment decision \| Corporate Social Responsibility \| Corporate social responsibility \| Impact Investment \| Impact investment \| Nachhaltige Kapitalanlage \| Sustainable investment \| Auslandsinvestition \| Foreign investment \| Welt \| World

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Extent:	1 Online-Ressource illustrations (black and white)
Series:	NBER working paper series ; no. w26582
Type of publication:	Book / Working Paper
Language:	English
Notes:	System requirements: Adobe [Acrobat] Reader required for PDF files Mode of access: World Wide Web Hardcopy version available to institutional subscribers
Other identifiers:	10.3386/w26582 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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