Dr Ioannis Oikonomou

'Dr Ioannis Oikonomou

Dr Ioannis Oikonomou

  • Associate Professor in Finance
  • Programme Area Director of Undergraduate degrees in Finance
  • Director MSc in Behavioural Finance

Contact details

Profile & Expertise

Ioannis joined the academic faculty of the ICMA Centre in 2011. He is the Programme Area Director for all ICMA Centre Undergraduate Programmes as well as for the MSc in Behavioural Finance. He is also the module convenor of the undergraduate Portfolio Management course and postgraduate Behavioural Finance course.In the past, he has worked at the Credit Extension Department of Citibank in Athens, Greece.

He holds a BSc in Banking and Financial Management from the University of Piraeus (Greece), an MSc in International Securities, Investment and Banking with a specialization in Trading and Asset Management and a PhD in Finance, both from the ICMA Centre.

In early 2012 Ioannis’s project, ‘Corporate Social Responsibility and Credit Costs’ was awarded a highly prestigious grant by the Centre for European Economic Research in Mannheim, Germany. The Strengthening Efficiency and Competitiveness in the European Knowledge Economies (or SEEK) grant is worth approximately €150,000 and aims to contribute to a deeper understanding of policy rationales, the design of appropriate policy instruments as well as their effectiveness and efficiency.

Specialisms

  • Socially Responsible Investing
  • Behavioural Finance
  • Sports Finance

Key publications, books, research & papers

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Article

The effects of environmental, social and governance disclosures and performance on firm value: a review of the literature in accounting and finance

Brooks, C. and Oikonomou, I. (2017) The effects of environmental, social and governance disclosures and performance on firm value: a review of the literature in accounting and finance. The British Accounting Review. ISSN 0890-8389 (In Press)

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This paper not only attempts to survey the burgeoning literature on environmental, social and governance disclosures and performance and their effects on firm value, but its focus also lies on highlighting stylised observations coming from the most recent work that has not yet become part of the ‘conventional wisdom’ in the field. In addition, it outlines some of the crucial knowledge gaps and interesting questions that have not, as of yet, been addressed and thus outlines a potential agenda for future research on socially responsible investing. Lastly, it introduces the papers published in this special issue of the British Accounting Review.

Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Dr Ioannis Oikonomou

Dr Ioannis Oikonomou

Programme Area Director of Undergraduate degrees in Finance, Director MSc in Behavioural Finance

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Article

Socially responsible investment portfolios: does the optimization process matter?

Oikonomou, I. , Platanakis, E. and Sutcliffe, C. (2017) Socially responsible investment portfolios: does the optimization process matter? The British Accounting Review. ISSN 0890-8389 doi: https://doi.org/10.1016/j.bar.2017.10.003 (In Press)

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This study investigates the impact of the choice of optimization technique when constructing Socially Responsible Investment (SRI) portfolios. Corporate Social Performance (CSP) scores are price sensitive information that is subject to considerable estimation risk. Therefore, uncertainty in the input parameters is greater for SRI portfolios than conventional portfolios, and this affects the selection of the appropriate optimization method. We form SRI portfolios based on six different approaches and compare their performance along the dimensions of risk, risk-return trade-off, diversification and stability. Our results for SRI portfolios contradict those of the conventional portfolio optimization literature. We find that the more “formal” optimization approaches (Black-Litterman, Markowitz and robust estimation) lead to SRI portfolios that are both less risky and have superior risk-return trade-offs than do more simplistic approaches; although they also have more unstable asset allocations and lower diversification. Our conclusions are robust to a series of tests, including the use of different estimation windows and stricter screening criteria.

Dr Ioannis Oikonomou

Dr Ioannis Oikonomou

Programme Area Director of Undergraduate degrees in Finance, Director MSc in Behavioural Finance

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Professor Charles Sutcliffe

Professor Charles Sutcliffe

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Article

The effects of corporate and country sustainability characteristics on the cost of debt: an international investigation

Hoepner, A. , Oikonomou, I. , Scholtens, L. J. R. and Schröder, M. (2016) The effects of corporate and country sustainability characteristics on the cost of debt: an international investigation. Journal of Business Finance & Accounting, 43 (1-2). pp. 158-190. ISSN 1468-5957 doi: https://doi.org/10.1111/jbfa.12183

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We investigate the relationship between corporate and country sustainability on the cost of bank loans. We look into 470 loan agreements signed between 2005 and 2012 with borrowers based in 28 different countries across the world and operating in all major industries. Our principal findings reveal that country sustainability, relating to both social and environmental frameworks, has a statistically and economically impactful effect on direct financing of economic activity. An increase of one unit in a country’s sustainability score is associated with an average decrease in the cost of debt by 64 basis points. Our international analysis shows that the environmental dimension of a country’s institutional framework is approximately twice as impactful as the social dimension, when it comes to determining the cost of corporate loans. On the other hand, we find no conclusive evidence that firm-level sustainability influences the interest rates charged to borrowing firms by banks. Our main findings survive a battery of robustness tests and additional analyses concerning subsamples, alternative sustainability metrics and the effects of financial crisis.

Dr Andreas G. F. Hoepner

Dr Andreas G. F. Hoepner

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Dr Ioannis Oikonomou

Dr Ioannis Oikonomou

Programme Area Director of Undergraduate degrees in Finance, Director MSc in Behavioural Finance

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Article

Is there a gold social seal? The financial effects of additions to and deletions from social stock indices

Kappou, K. and Oikonomou, I. (2016) Is there a gold social seal? The financial effects of additions to and deletions from social stock indices. Journal of Business Ethics, 133 (3). pp. 533-552. ISSN 1573-0697 doi: https://doi.org/10.1007/s10551-014-2409-z

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This study investigates the financial effects of additions to and deletions from the most well-known social stock index: the MSCI KLD 400. Our study makes use of the unique setting that index reconstitution provides and allows us to bypass possible issues of endogeneity that commonly plague empirical studies of the link between corporate social and financial performance. By examining not only short-term returns but also trading activity, earnings per share, and long-term performance of stocks that are involved in these events, we bring forward evidence of a ‘social index effect’ where unethical transgressions are penalized more heavily than responsibility is rewarded. We find that the addition of a stock to the index does not lead to material changes in its market price, whereas deletions are accompanied by negative cumulative abnormal returns. Trading volumes for deleted stocks are significantly increased on the event date, while the operational performances of the respective firms deteriorate after their deletion from the social index.

Dr Konstantina Kappou

Dr Konstantina Kappou

Programme Director, MSc Financial Risk Management, Senior Tutor, Undergraduate and Postgraduate Programme, Regional Director, UK, London Chapter, Global Association of Risk Professionals (GARP)

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Dr Ioannis Oikonomou

Dr Ioannis Oikonomou

Programme Area Director of Undergraduate degrees in Finance, Director MSc in Behavioural Finance

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Article

The financial effects of uniform and mixed corporate social performance

Oikonomou, I. , Brooks, C. and Pavelin, S. (2014) The financial effects of uniform and mixed corporate social performance. Journal of Management Studies, 51 (6). pp. 898-925. ISSN 1467-6486 doi: https://doi.org/10.1111/joms.12064

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Firms typically present a mixed picture of corporate social performance (CSP), with positive and negative indicators exhibited by the same firm. Thus, stakeholders’ judgements of corporate social responsibility (CSR) typically evaluate positives in the context of negatives, and vice versa. Building on social judgement theory, we present two alternative accounts of how stakeholders respond to such complexity, which provide differing implications for the financial effects of CSP: reciprocal dampening and rewarding uniformity. Echoing notable findings on strategic consistency, our US panel study finds that firms that exhibit uniformly positive or uniformly negative indicators in particular dimensions of CSP outperform firms that exhibit a mixed picture of positives and negatives, which supports the notion that stakeholders’ judgements of CSR reward uniformity.

Dr Ioannis Oikonomou

Dr Ioannis Oikonomou

Programme Area Director of Undergraduate degrees in Finance, Director MSc in Behavioural Finance

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Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Article

The effects of corporate social performance on the cost of corporate debt and credit ratings

Oikonomou, I. , Brooks, C. and Pavelin, S. (2014) The effects of corporate social performance on the cost of corporate debt and credit ratings. Financial Review, 49 (1). pp. 49-75. ISSN 1540-6288 doi: https://doi.org/10.1111/fire.12025

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This study investigates the differential impact that various dimensions of corporate social performance have on the pricing of corporate debt as well as the assessment of the credit quality of specific bond issues. The empirical analysis, based on an extensive longitudinal data set, suggests that overall, good performance is rewarded and corporate social transgressions are penalized through lower and higher corporate bond yield spreads, respectively. Similar conclusions can be drawn when focusing on either the bond rating assigned to a specific debt issue or the probability of it being considered to be an asset of speculative grade.

Dr Ioannis Oikonomou

Dr Ioannis Oikonomou

Programme Area Director of Undergraduate degrees in Finance, Director MSc in Behavioural Finance

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Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Contributions

Essentials of Investments

Bodie Z., Kane A., Marcus A., (2013) Essentials of Investments, 9th Global Edition, McGraw Hill

Contributions of exercises on the Capital Asset Pricing Model and Market Efficiency for “Essentials of Investments”

Dr Ioannis Oikonomou

Dr Ioannis Oikonomou

Programme Area Director of Undergraduate degrees in Finance, Director MSc in Behavioural Finance

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Article

The impact of corporate social performance on financial risk and utility: a longitudinal analysis

Oikonomou, I. , Brooks, C. and Pavelin, S. (2012) The impact of corporate social performance on financial risk and utility: a longitudinal analysis. Financial Management, 41 (2). pp. 483-515. ISSN 1755-053X doi: https://doi.org/10.1111/j.1755-053X.2012.01190.x

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This study focuses on the wealth-protective effects of socially responsible firm behavior by examining the association between corporate social performance (CSP) and financial risk for an extensive panel data sample of S&P 500 companies between the years 1992 and 2009. In addition, the link between CSP and investor utility is investigated. The main findings are that corporate social responsibility is negatively but weakly related to systematic firm risk and that corporate social irresponsibility is positively and strongly related to financial risk. The fact that both conventional and downside risk measures lead to the same conclusions adds convergent validity to the analysis. However, the risk-return trade-off appears to be such that no clear utility gain or loss can be realized by investing in firms characterized by different levels of social and environmental performance. Overall volatility conditions of the financial markets are shown to play a moderating role in the nature and strength of the CSP-risk relationship.

Dr Ioannis Oikonomou

Dr Ioannis Oikonomou

Programme Area Director of Undergraduate degrees in Finance, Director MSc in Behavioural Finance

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Professor Chris Brooks

Professor Chris Brooks

Henley Business School Director of Research, Deputy Head of Department

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Contributions

The Bond and Money Markets: Strategy, Trading, Analysis

Choudhry, M. (2003) The Bond and Money Markets: Strategy, Trading, Analysis, Butterworth-Heinemann publications

Contributions of text, exercises and other material in the forthcoming edition of “The Bond and Money Markets: Strategy, Trading, Analysis”

Dr Ioannis Oikonomou

Dr Ioannis Oikonomou

Programme Area Director of Undergraduate degrees in Finance, Director MSc in Behavioural Finance

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Events

Our faculty regularly attend a wide range of events across the globe to share their research and expertise, as well as meeting new students. Use the map below to find past and upcoming events in your region.

Taught modules

Behavioural Finance

Financial theories have traditionally assumed that rational, risk-averse investors trade in efficient and free-flowing asset markets. Academic research and practitioner experience have cast doubt on this paradigm, instead proposing that investors may not be utility maximisers, and that there may be…

Financial theories have traditionally assumed that rational, risk-averse investors trade in efficient and free-flowing asset markets. Academic research and practitioner experience have cast doubt on this paradigm, instead proposing that investors may not be utility maximisers, and that there may be…

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Portfolio Management (BSc)

The module aims to build on the techniques for portfolio selection that have been introduced in the Securities, Futures and Options module. The module examines the issues involved in understanding the investment market, constructing a competitive investment portfolio (of an active, passive or smart…

The module aims to build on the techniques for portfolio selection that have been introduced in the Securities, Futures and Options module. The module examines the issues involved in understanding the investment market, constructing a competitive investment portfolio (of an active, passive or smart…

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News & Media Appearances

Our faculty feature in radio, tv and newspaper segments across the globe using their research and expertise to comment on current events. Find the latest media appearances using the filters below.

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Selected research grants

Corporate Social Responsibility and Credit Costs

In early 2012 Ioannis’s project, ‘Corporate Social Responsibility and Credit Costs’ was awarded a highly prestigious grant by the Centre for European Economic Research in Mannheim, Germany. Ioannis is currently working with an international team of academics from Scotland, Germany and the Netherlands and his research assistant Ms Despoina Kentrou on a project concerning the effects of…

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