Green and Sustainable Corporate Finance

Call for papers for: International Journal of Managerial Finance

The submission portal for this special issue will open on June 1, 2021.

Guest Editor
Aviral Kumar Tiwari, Rajagiri Business School, Rajagiri Valley Campus, Kochi, India

Description of Purpose and Scope of the Special Issue

Sustainability as a phenomenon is rapidly entering the economic and the financial literature. Initially, the concept was introduced in the environmental interpretation during United Nations conferences in the 1970s and 1980s. This special issue treats sustainable corporate finance (SCF) as a multi-attribute approach in which financial, social and environmental elements are interrelated and integrated. The key concept of sustainability is that an explicit connection should be made between present and future generations. Because of its discounting capacity, the character of finance is specifically suited to store present and future developments. A major problem, however, is the relevance of the assumptions on the behavior of economic agents. Whereas capital market theories can be analyzed as positive theories based on strictly rational human behavior, financial management cannot be value-free because of the consequences of the choices of economic agents.

In present times of technological progress the worldwide economy is undermined from three major challenges: environmental change, vitality limitations and money related emergency. Green finance has emerged as the solution for accomplishing contract between the economy and nature. Green finance is considered as the monetary help for green development, which decreases ozone depleting substance discharges and air contamination emanations altogether. Green fund in horticulture, green structures, green security and other green activities should increase for the monetary improvement of the global economy.

Green and sustainable corporate finance are more important nowadays that even before. They are gaining increasing worldwide attention from financial markets, political actors and the broader public alike. Their objective is to take into account environmental, social or governance (ESG) criteria when making financial decisions and designing financial services, thus expanding the benefit beyond investors to the whole society. Academics and practitioners are questioning the role that green and sustainable finance plays, which goes beyond the primary function of finance as funding the economy.

Aware of the importance of extra-financial issues, the investment community has noted a shift in focus from shareholders’ to stakeholders’ values. A new approach of finance is thus needed to answer questions related to green and sustainable finance. Financial markets, corporate finance and corporate governance have to integrate extra-financial aspects into financial decision making processes. Many issues remain unresolved and questions unanswered: How to allocate funds optimally in terms of financial and non-financial performance, how to finance the economy and satisfy a variety of objectives of stakeholders (firms, investors and society) from a more global point of view? What are the consequence of this fund allocation in terms of risk management for corporations and investors? Which asset pricing methods can be proposed to value these innovative financial instruments? What is the role of policy makers in developing green and sustainable finance?

This Special Issue aims to answer these questions and address the theoretical and empirical issues related to recent developments and new directions in green and sustainable finance. It will advance our understanding of how financial products support investments in projects that benefit the environment and promote a carbon-free economy. It will also contribute to the development of a more comprehensive analysis of the role of green and sustainable finance in shaping firm and investor decisions. Papers will draw on recent theoretical and empirical research that explores the reasons, importance, and implications of business ethics, corporate social responsibility (CSR), and socially responsible investing. These will be of interest and relevance to academics, practitioners and policy makers.

Specifically, this special issue welcomes manuscripts drawn from any area of accounting or finance disciplines that examine the role of innovative financial instruments and accounting practices arising from green finance, and how these relate to corporate measures and practices and their ultimate impact on sustainability. Possible themes are listed below as an example:

  • Green Insurance
  • Green financing and financing innovations
  • Green bond and financial markets
  • Green credit rating systems and financial system
  • Energy subsidies and Green subsidies
  • Green financing and sustainable development
  • Sustainable development and corporate accountability
  • Environmental Business
  • Micro-credit for sustainable development
  • Green finance and energy efficiency for sustainable use
  • The institutional difference hypothesis (IDH)
  • Board gender diversity and environmental innovation
  • Environmental investments and environmental performance
  • Environmental policies and stock price crash risk
  • Corporate environmental disclosure.

Deadline and Submission Details

Submission Opening: June 1, 2021
Submission Deadline: September 30, 2021

Submitted manuscripts should not have been published previously nor be under consideration for publication elsewhere.

To submit your research, please visit the Scholar One manuscript portal. Interested authors should designate the submission for the Special Issue on “Green and Sustainable Corporate Finance” and include a cover letter.

To view the author guidelines for this journal, please visit the journal's page.

Contact the Guest Editor

Aviral Kumar Tiwari
Rajagiri Business School, Kochi, India
[email protected]