ICMA Centre Academics' research featured in CFA Digest
Dr Ioannis Oikonomou and Professor Chris Brooks’ work on the connection between corporate social performance and fixed income securities was recently recognised for its academic rigor and practical significance as its summary was included in the latest issue of CFA Digest, a periodical publication of the CFA Institute (available at this link http://www.cfapubs.org/doi/full/10.2469/dig.v44.n6.8).
In the words of the CFA institute: “The goal of the CFA Digest is to provide its readers with a convenient way to stay abreast of relevant, practitioner-oriented research and cutting edge thought in the field of finance and investments through the publication of high-quality summaries”.
The paper, entitled “The Effects of Corporate Social Performance on the Cost of Corporate Debt and Credit Ratings” provides findings supportive of a negative association between corporate social responsibility and credit spreads and a positive link between corporate social performance and credit quality − as measured by agency ratings. These conclusions are particularly useful for the multi-billion socially responsible investing (SRI) industry which has been expanding its investment universe from equity to bonds and alternative asset classes.
“We are very happy to see our work being recognised as highly relevant by investment practitioners and having the potential to guide decisions which influence a multitude of different stakeholders”, commented Dr Oikonomou and Professor Brooks.