New development: Does investment in social impact bonds affect equity prices? An event study

Zvika Afik, Hagai Katz, Arie Levy, Rami Yosef

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


In social impact bonds (SIB), investors, service providers and governments collaborate to alleviate a social problem. Despite growing interest in SIBs, researchers have overlooked how investing in a SIB affects a corporate investor’s equity price. Using event study methodology, we found an effect similar to other reputation-enhancement initiatives. This effect was positive and statistically significant, but it was short-lived and generally less economically important than other effects on stock prices before and after this event. IMPACT This article informs corporate investors that financial markets generally favour SIB announcements, although they do not assign significant economic value to SIBs. Therefore, corporations should consider investment in SIBs as a reputational asset, with the added value of doing good for society. Interested actors such as governments, intermediaries and nonprofits interested in attracting corporate investors can leverage this advantage to bring new corporate money to fund social services.

Original languageEnglish
Pages (from-to)272-275
Number of pages4
JournalPublic Money and Management
Issue number3
StatePublished - 2021
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2019 Informa UK Limited, trading as Taylor & Francis Group.


  • Event study
  • SIB
  • impact investment
  • pay for success
  • social impact bonds


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