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

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.