Special Issue "Financial Implications of Sustainability. Linkages and Tensions between Natural, Social and Financial Capital"

A special issue of Sustainability (ISSN 2071-1050).

Deadline for manuscript submissions: closed (30 December 2018).

Special Issue Editors

Prof. Dr. JUAN RAMON PIÑEIRO CHOUSA
Website
Guest Editor
SVCO Research Group, Universidade de Santiago de Compostela, Santiago de Compostela 15782, Spain
Interests: reputational risk; proxi advisors; sustainability; corporate social responsibility; finance
Prof. Dr. M. Ángeles López-Cabarcos

Guest Editor
Santiago de Compostela University
Interests: corporate social responsibility; organizational climate; laboral conditions; behavioral finance

Special Issue Information

Dear Colleagues,

Many different forms of capital have been identified in different contexts and with diverse aims; however, broadly speaking, it is possible to classify them into three main categories: (i) natural capital, including natural resources (renewable and non-renewable) and ecosystem services (capture of carbon dioxide by forests, land regeneration, etc.); social capital, considering human capital (health, skills, motivation, knowledge, etc.) and ‘societal’ capital (public services, families, communities, etc.); and (iii) economic capital, including financial capital and tangible and intangible assets.

These forms of capital are interchangeable, and transforming one into another generally involves financial capital. Financial capital is the only total fungible, acting as an account unit, or as a means of wealth accumulation by acquiring additional welfare; and it is valued for its liquidity, that is, for being easily exchanged for other types of capital.

The trade-offs between financial, natural and social capital lie at the heart of the complex nature of the relationship between sustainability and finance. On the one hand, the achievement of sustainable development is strongly conditioned by financial decisions of different economic agents, who can impact positively or negatively on the environmental, social or economic situation of communities, organizations or individuals. On the other hand, there are many sustainability issues that are challenging for all these different socioeconomic agents and that are transforming the conditions in order to perform their activities and pursue their objectives.

Although financial objectives have frequently been the reason for unsustainable actions and behaviours, prompting or accelerating the degradation and depletion of natural and social capital, nowadays the free flow of capital should allow a redirection of financial resources towards investment opportunities that promise increases in both human and environmental wealth. This redirection of financial capital flows requires the design of new public and private sources of funds (such as crowdfunding) and innovative financial products and services for the joint management of financial, social and natural capital.

There is also a need for discussing the development of a sustainable financial framework, not only referring to redirecting financial flows towards sustainable projects and aligning them with economic/social/environmental priorities, but also in achieving the stability and sustainability of the financial system itself, minimizing the excess of volatility and systemic risks related to global sustainability challenges.

At the firm level, innovative organizations must use a broad and intelligent perspective on the present and future to grow successfully while ensuring their sustainability. Succeeding in such a fast-paced market requires aligning economic, natural and social capital. To this end, it is necessary to design courses of action that use a long-standing perspective, paying attention to potential disruptions that may arise, being proactive and sharing knowledge with other stakeholders, being capable of establishing collaborative and cooperative formulas for all involved parties, establishing sustainable value creation as a fundamental objective for the organization, and having the courage to make the right decisions at the right moment.

This Special Issue on “Financial Implications of Sustainability: Linkages and Tensions between Natural, Social and Financial Capital” is aimed at filling an important gap in literature by concatenating and extending knowledge in this field of research, and at discussing the complex relation between sustainability and natural/social/financial capital. In this sense, we encourage original submissions, as well as review articles, theoretical contributions or perspective pieces. We welcome papers that relate to, but are not limited to, the following themes:

  • Sustainability as a “new” paradigm for finance.
  • Financial analysis of investments/companies related to sustainability (management of natural resources, sustainable entrepreneurship, etc.).
  • Analysis of interactions and conflicts between financial, environmental and social aspects at organizations, communities or markets.
  • Analysis of benefits/risks and performance of different types of financial instruments related to sustainability: crowdfunding, climate derivatives, etc.
  • Recommendation policies for national and local governments to mobilize private and public financing for sustainable projects.
  • Analysis and evaluation of best practices.
  • Role of national development banks to finance long-term investments necessary for achieving sustainable development.
  • Harmonization of various initiatives on responsible investment and financing standards.
  • Analysis of systemic risks related to sustainability.
  • Analysis of the relation between financial stability and shocks or natural disasters.
  • Quality of credit ratings, including analysis of competition, conflicts of interest and transparency/ consideration of sustainability issues.
  • Financial and accounting instruments for making sustainable business decisions, providing information to all types of stakeholders.
  • Analysis of possible management models that ensure sustainable financial success.
  • New ways to do sustainable business.
  • The importance of the change from the perspective of sustainability and financial success.
  • New ways of organizational relationships to create sustainable value.

All papers selected for this Special Issue will undergo a rigorous peer-review process.

Prof. Dr. Juan Piñeiro-Chousa
Prof. Dr. M. Ángeles López-Cabarcos
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All papers will be peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Natural capital and sustainability
  • Social capital and sustainability
  • Economic capital and sustainability
  • Sustainability and finance
  • Crowdfunding

Published Papers (15 papers)

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Open AccessArticle
Assessing Sustainability-Related Systematic Reputational Risk through Voting Results in Corporate Meetings: A Cross-Industry Analysis
Sustainability 2019, 11(5), 1287; https://doi.org/10.3390/su11051287 - 01 Mar 2019
Cited by 1
Abstract
This research uses Sharpe’s single-index model to analyze voting results in corporate meetings, thus assessing whether voting results at the corporate level are influenced by aggregated voting results at the industry level. We use a sample of votes regarding managerial proposals concerning executive [...] Read more.
This research uses Sharpe’s single-index model to analyze voting results in corporate meetings, thus assessing whether voting results at the corporate level are influenced by aggregated voting results at the industry level. We use a sample of votes regarding managerial proposals concerning executive election and compensation. The companies involved are included in the five most represented industries in NASDAQ, and the analysis focuses on the 2003–2017 period. The votes were disclosed by institutional investors who are especially concerned with corporate governance and sustainability issues, so we consider that they reflect sustainability-driven decisions. Based on previous research linking voting results to reputational consequences, we assess the systematic component of sustainability-related reputational risk within these five industries, finding significant differences among them. Thus, although the systematic component of sustainability-related reputational risk appears to be strong for financial and technological companies, it is weak for healthcare, consumer services, and capital goods companies. Implications for researchers and practitioners are reported. Full article
Open AccessArticle
Crowdfunding and Social Entrepreneurship: Spotlight on Intermediaries
Sustainability 2019, 11(4), 1175; https://doi.org/10.3390/su11041175 - 22 Feb 2019
Cited by 4
Abstract
This study contributes to the literature by describing how crowdfunding platforms that host social entrepreneurship projects build and preserve legitimacy. We study three intermediaries, analyzing the actions they take to ensure that creators and funders perceive crowdfunding as a trustworthy form of alternative [...] Read more.
This study contributes to the literature by describing how crowdfunding platforms that host social entrepreneurship projects build and preserve legitimacy. We study three intermediaries, analyzing the actions they take to ensure that creators and funders perceive crowdfunding as a trustworthy form of alternative finance. This study shows that the legitimacy that funders ascribe to a project’s social and/or environmental aims is also a source of legitimacy for the intermediaries that promote social entrepreneurship projects. These intermediaries act as agents of social change, using a range of mechanisms to promote projects that seek to create social and/or environmental value in addition to economic value. Our study also has practical implications. We highlight the mechanisms used to reduce potential risks for intermediaries, creators, and funders and ensure their trust in crowdfunding. Full article
Open AccessArticle
Shared Identity, Family Influence, and the Transgenerational Intentions in Family Firms
Sustainability 2019, 11(4), 1130; https://doi.org/10.3390/su11041130 - 21 Feb 2019
Cited by 5
Abstract
A family’s transgenerational intention (TI) to pass ownership of the firm to the next generation of family members is the defining characteristic of a family. TI reflects a family’s intention to engage in succession planning, which is the primary predictor for succession success. [...] Read more.
A family’s transgenerational intention (TI) to pass ownership of the firm to the next generation of family members is the defining characteristic of a family. TI reflects a family’s intention to engage in succession planning, which is the primary predictor for succession success. In this study, we draw on psychological ownership theory to develop and test a model of a family’s TI. In the model, we argue that family influence impacts TI through shared identity. We also argue that a family firm CEO’s relationship to the family (by blood vs. marriage vs. hire) moderates the relationship between shared identity and TI. We tested our hypotheses and the model on a sample of North American family firms and found support for most hypotheses. Full article
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Open AccessArticle
How Investors Perceive Mandatory Audit Firm Rotation in Korea
Sustainability 2019, 11(4), 1089; https://doi.org/10.3390/su11041089 - 19 Feb 2019
Cited by 3
Abstract
Credible audit quality is a precondition for a firm’s sustainability. External auditors offer assurance with regard to the uncertain factors that can jeopardize a firm’s sustainability and provide audit opinions that help investors assess risk. After the global crisis and accounting scandals, mandatory [...] Read more.
Credible audit quality is a precondition for a firm’s sustainability. External auditors offer assurance with regard to the uncertain factors that can jeopardize a firm’s sustainability and provide audit opinions that help investors assess risk. After the global crisis and accounting scandals, mandatory audit firm rotation has been implemented globally. However, few studies have investigated either the cost or the benefit of mandatory audit firm rotation. Prior studies provide only indirect evidence on the effects of audit firm tenure on audit quality/perceived audit quality. By discussing prior arguments, we examine how investors perceive the implementation of mandatory audit firm rotation in Korea. Using a unique and direct setting to examine our research question, we analyze the relationship between firms with mandatorily switched audit firms and the cost of equity capital from 2006 to 2008. We find that the mandatory change in the auditors has a negative association with the cost of equity capital. The results are robust to using the arithmetic mean of the cost of equity capital, lagged control variables, and the manufacturing industry effect. The results indicate that investors perceive that mandatory audit firm rotation provides an environment for qualified audits by enhancing auditor independence and skepticism, and thus decreases the cost of equity capital. This study helps to improve our understanding of the impact of mandatory audit firm rotation the information risk evaluations and provides political implications for policy makers by showing the benefit of mandatory audit firm rotation. Full article
Open AccessArticle
Utilities: Innovation and Sustainability
Sustainability 2019, 11(4), 1085; https://doi.org/10.3390/su11041085 - 19 Feb 2019
Cited by 6
Abstract
Pro-market reforms have disrupted the playing field and strongly affected the innovative behavior of electricity, gas and water utilities. Beyond a significant reduction in sectoral R&D investments, very little is known about how these firms accomplish their innovation strategies in this new scenario. [...] Read more.
Pro-market reforms have disrupted the playing field and strongly affected the innovative behavior of electricity, gas and water utilities. Beyond a significant reduction in sectoral R&D investments, very little is known about how these firms accomplish their innovation strategies in this new scenario. Given this gap in the literature, the first aim of this paper is to identify the internal determinants of both the product and process innovation of utilities in a liberalized environment. Additionally, there is another external force that is also disrupting the specific landscape of utilities: the sustainability challenge. Therefore, the second aim of this paper is establishing whether sustainability-orientation is a driver of innovation in the utilities industries. The empirical study is carried out on a panel of 82 Spanish electricity, gas and water utilities over the period 2005–2012 (Technological Innovation Panel dataset (PITEC)). The main findings are: (i) the acquisition of disembodied knowledge does not play a relevant role for utilities; (ii) non-formal search processes are central to product innovation; (iii) some markets for technology –external R&D and technology embedded in equipment—are determinant factors for process innovation; (iv) sustainability orientation increases the likelihood of generating both, product and process innovations. These firm-level results are novel contributions to the field of utility management. Full article
Open AccessArticle
The Financing Framework for Sustainable Development in Emerging Economies: The Case of Uruguay
Sustainability 2019, 11(4), 1059; https://doi.org/10.3390/su11041059 - 18 Feb 2019
Cited by 8
Abstract
This paper explores the financing framework for sustainable development in Uruguay, an emerging economy, and examines whether available financing instruments contribute to achieving the sustainable development goals (SDGs) in which significant progress is still required in this country. Reports, policy documents and academic [...] Read more.
This paper explores the financing framework for sustainable development in Uruguay, an emerging economy, and examines whether available financing instruments contribute to achieving the sustainable development goals (SDGs) in which significant progress is still required in this country. Reports, policy documents and academic literature were reviewed to determine the types of sustainable development financing instruments available, and to analyse the challenges facing emerging economies in this regard. In addition, the financing programmes available from the public sector, non-governmental organisations (NGOs), the financial sector and multilateral credit agencies were examined. The results obtained show that the main financing sources for sustainable development are located within the public sector due to the absence of a developed financial market, and that the existing financial instruments do not address the SDGs where most attention is required. The latter circumstances make it challenging to achieve these SDGs in Uruguay. The study findings highlight the need for greater coordination among all parties to make efficient use of the scarce resources available to an emerging economy and thus enable it to meet its SDGs. Full article
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Open AccessArticle
Beyond Subsidies: A Study of Sustainable Public Subordinated Debt in Spain
Sustainability 2019, 11(4), 1049; https://doi.org/10.3390/su11041049 - 18 Feb 2019
Abstract
Evidence from business shows that small- and medium-sized enterprises (SMEs) are fragile. They suffer from a high mortality rate that primarily owes to difficulties in securing financing as a result of major information asymmetries. Despite these difficulties, SMEs provide the economic backbone of [...] Read more.
Evidence from business shows that small- and medium-sized enterprises (SMEs) are fragile. They suffer from a high mortality rate that primarily owes to difficulties in securing financing as a result of major information asymmetries. Despite these difficulties, SMEs provide the economic backbone of all economically developed countries. Aware of the key role of SMEs in national economic stability and of the financial problems that SMEs face, governments have designed a range of financial and tax measures to protect them. These financial measures include a highly specific form of public financing called subordinated debt. This concept refers to debt with the lowest credit seniority, just before equity. Subordination makes sense when companies go into liquidation because subordinated debt creditors are the last creditors to receive repayment, making recovery of this debt virtually impossible. Therefore, the risk borne by lenders of subordinated debt is similar to that of shareholders of the borrowing firm. This paper presents an ordinary least squares regression model to estimate the cash flows of SMEs financed by public subordinated debt. This provides public authorities with a tool to estimate the ability of SMEs to repay their debt and to thereby ensure that public subordinated debt financing is sustainable. Full article
Open AccessArticle
Sustainable Financing through Crowdfunding
Sustainability 2019, 11(3), 934; https://doi.org/10.3390/su11030934 - 12 Feb 2019
Cited by 5
Abstract
The phenomenon of crowdfunding has been widely studied, while the sustainability of crowdfunded ventures is attracting growing interest from academia and society. In light of this interest, we conducted bibliometric analysis to study the relationship between crowdfunding and crowdfunded ventures’ sustainability orientation. We [...] Read more.
The phenomenon of crowdfunding has been widely studied, while the sustainability of crowdfunded ventures is attracting growing interest from academia and society. In light of this interest, we conducted bibliometric analysis to study the relationship between crowdfunding and crowdfunded ventures’ sustainability orientation. We analyzed the number of publications, type of publications, and most productive countries, journals, and authors. We also analyzed the most cited articles and examined their approach to sustainability and crowdfunding. The results suggested that a sustainability orientation could bring about change in the current financial and environmental system. Full article
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Open AccessArticle
The Impact of Haze on the Availability of Company Debt Financing: Evidence for Sustainability of Chinese Listed Companies
Sustainability 2019, 11(3), 806; https://doi.org/10.3390/su11030806 - 03 Feb 2019
Cited by 1
Abstract
Based on the data of A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2013 to 2017 and the air quality monitoring data released by China Environmental Monitoring Station, the paper examines the impact of haze on the availability of company debt [...] Read more.
Based on the data of A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2013 to 2017 and the air quality monitoring data released by China Environmental Monitoring Station, the paper examines the impact of haze on the availability of company debt financing by using fixed-effects model and quantile regression model. The empirical results show that: Firstly, haze has a positive impact on the demand of company debt financing, and the positive effect is marginal increment. Secondly, haze has a negative impact on the availability of company debt financing, and the negative impact is also marginal increment. Further study found that heavy polluting industry characteristics weaken the impact of haze on company debt financing availability. The paper analyzes the influence of air pollution on enterprise management from the perspective of company debt financing and explains the necessity for companies to implement an environmentally sustainable development strategy. Full article
Open AccessArticle
Measuring Risk Allocation of Tax Burden for Small and Micro Enterprises
Sustainability 2019, 11(3), 741; https://doi.org/10.3390/su11030741 - 31 Jan 2019
Cited by 3
Abstract
Tax burden outlier inhibits the growth of small and micro enterprises. This paper introduces the risk allocation of tax burden to measure the tax burden outlier. Using a time-varying nonparametric benchmark and path model, this paper measures the tax risk allocation of 3552 [...] Read more.
Tax burden outlier inhibits the growth of small and micro enterprises. This paper introduces the risk allocation of tax burden to measure the tax burden outlier. Using a time-varying nonparametric benchmark and path model, this paper measures the tax risk allocation of 3552 small and micro enterprises in the credit insurance fund from January 2016 to August 2018. This paper explores the configuration of tax burden risk allocation and discusses the changes along time and with the addition of other variables. Finally, this paper gives an analysis of strategies to improve tax burden risk allocation. The results provide decision support for reducing the tax burden and promoting the growth of small and micro enterprises. Full article
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Open AccessArticle
Ambiguity in the Attribution of Social Impact: A Study of the Difficulties of Calculating Filter Coefficients in the SROI Method
Sustainability 2019, 11(2), 386; https://doi.org/10.3390/su11020386 - 14 Jan 2019
Cited by 3
Abstract
In order to analyse, manage, and compare social projects we need, among other things, to be able to measure their impact. One of the methodologies currently used to measure and manage social impact is Social Return on Investment (SROI). However, not all the [...] Read more.
In order to analyse, manage, and compare social projects we need, among other things, to be able to measure their impact. One of the methodologies currently used to measure and manage social impact is Social Return on Investment (SROI). However, not all the results calculated by the SROI method are directly attributable to the project, and, therefore, to determine the real impact it is necessary to filter out the changes that the project has not produced. Filter coefficients perform this function. However, the theoretical logic on which the chain is constructed that converts the outputs into impacts is ambiguous. In this study, we will analyse twenty-five real cases where SROI was used to measure social projects. We will identify the difficulties of isolating and measuring impacts by performing a comparative study of the procedures that entities develop to calculate the filters. This allows us to calculate the impacts from the outputs. We will then propose the improvements needed to overcome these shortcomings. Full article
Open AccessArticle
Social Capital, Human Capital, and Sustainability: A Bibliometric and Visualization Analysis
Sustainability 2018, 10(12), 4751; https://doi.org/10.3390/su10124751 - 13 Dec 2018
Cited by 13
Abstract
Academic interest in social and human capital is growing significantly. Similarly, their relationship with sustainability is increasing, especially compared to sustainability’s relationship with natural capital and financial and economic capital. Bibliometric and visualization research on these relationships is nonetheless insufficient. This study analyzes [...] Read more.
Academic interest in social and human capital is growing significantly. Similarly, their relationship with sustainability is increasing, especially compared to sustainability’s relationship with natural capital and financial and economic capital. Bibliometric and visualization research on these relationships is nonetheless insufficient. This study analyzes the evolution of the literature on natural capital, financial and economic capital, and social and human capital related to sustainability. On the other hand, the study presents a bibliometric analysis on social capital and human capital (SHC) related to sustainability. The article studies 635 references collected from the Web of Science (WoS) Core Collection database and utilizes visualization of similarities (VOS) viewer program to graphically map the material. The analysis involves co-occurrence of keywords, co-citation, and co-authorship. The results reveal not only the state of the art and the leading trends, but also the evolution regarding impact, main journals, documents, topics, authors, institutions, and countries. The study provides researchers and practitioners with a visual and schematic frame of the research on this topic. Full article
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Open AccessArticle
Effect of Stakeholders-Oriented Behavior on the Performance of Sustainable Business
Sustainability 2018, 10(12), 4724; https://doi.org/10.3390/su10124724 - 11 Dec 2018
Cited by 3
Abstract
This study focuses on stakeholder-oriented behavior, throughout organizational culture and organizational behavior, and its effects on the performance of sustainable organizations managed according to Corporative Social Responsibility (CSR) criteria. The investigation demonstrates that the sustainability efforts of a wide range of stakeholders exert [...] Read more.
This study focuses on stakeholder-oriented behavior, throughout organizational culture and organizational behavior, and its effects on the performance of sustainable organizations managed according to Corporative Social Responsibility (CSR) criteria. The investigation demonstrates that the sustainability efforts of a wide range of stakeholders exert various effects on business performance. This investigation tests two integrated conceptual models: (a) Stakeholder Orientation Model estimates the relationships among organizational culture components and their effects on stakeholder-oriented organizational behavior. That is, it estimates the influence of values on norms and artifacts, and their effects on stakeholder-oriented organizational behavior; (b) Performance model estimates the association between stakeholder-oriented organizational behavior and financial and market performance, reputation, and commitment. Using Structural Equation Modelling, both models were estimated from primary data collected from large- and medium-sized multi-sector Colombian companies involved in business sustainability practices. The findings reveal that values are antecedents of norms, but neither values nor norms are predictors of artifacts. Furthermore, norms and artifacts exert direct effects on stakeholder-oriented organizational behavior. In turn, stakeholder-oriented organizational behaviors are predictors of both market performance and commitment. Nevertheless, stakeholder-oriented organizational behaviors are not direct antecedents of both financial performance and reputation. Full article
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Open AccessArticle
The Influence of Social Capital on Farm Household’s Borrowing Behavior in Rural China
Sustainability 2018, 10(12), 4361; https://doi.org/10.3390/su10124361 - 22 Nov 2018
Cited by 3
Abstract
This paper evaluates whether social capital affects the ability of farm households to obtain formal and informal loans. We test for the impact of two measures of social capital. The first measure, kinship, captures the traditional aspects of bonding social capital in [...] Read more.
This paper evaluates whether social capital affects the ability of farm households to obtain formal and informal loans. We test for the impact of two measures of social capital. The first measure, kinship, captures the traditional aspects of bonding social capital in rural areas that might affect the probability of getting informal loans. As the economic reforms in China have changed the traditional rural way of life and weakened the role of kinship, more mobile farmers are likely to develop a different kind of social capital also based in the Chinese tradition but not focused exclusively on kin. This friendship social capital is hypothesized to affect farmers’ ability to get both formal and informal loans. We use the Chinese Household Finance Survey data from 2013 and estimate the probability of obtaining credit, while also accounting for the reverse causality. In addition, we use the Heckman selection model to establish how social capital affects not only the probability of getting loans but also the size of the loan. Empirical results suggest that social capital affects borrowing by farm households. In particular, the friendship social capital has a positive effect on farm household’s ability to get formal loans, and has a substitution effect on informal borrowing, while kinship has a positive effect on farm households’ ability to get informal loans. Friendship and kinship are positively associated with the amount of a farm household’s formal and informal loans, respectively. Full article
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Other

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Open AccessConcept Paper
The Concept of Risk Capital and Its Application in Non-Financial Companies: A Sustainable Dimension
Sustainability 2019, 11(3), 894; https://doi.org/10.3390/su11030894 - 09 Feb 2019
Abstract
The prime purpose of this paper is to explain the concept of risk capital and advocate for its implementation in the management of non-financial companies. The paper is kept in the discursive tone, as the problem is new, and it first requires to [...] Read more.
The prime purpose of this paper is to explain the concept of risk capital and advocate for its implementation in the management of non-financial companies. The paper is kept in the discursive tone, as the problem is new, and it first requires to establish the conceptual framework for further empirical considerations. With reference to the origins of the concept of risk capital (related to its understanding in financial institutions), the paper discusses the utility of risk capital for the management of risk in non-financial companies, with the recognition of the sustainable dimension of risk capital. The discussion is framed within the corporate finance approach. In the applicative dimension, the paper identifies the universe of the sources of risk capital and proposes a taxonomy of these sources. It considers both the well-established traditional sources, as well as the state-of-the-art solutions that are in the early stages of their adoption for the needs of corporate end-users. The conclusions address the possible areas of tensions and of the inclusion of risk capital in the decision-making process, as well as the areas of further empirical research within. Full article
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