Hedging precious metals with impact investing

Journal article

Akhtaruzzaman, Md, Banerjee, Ameet Kumar, Le, Van and Moussa, Faten. (2024). Hedging precious metals with impact investing. International Review of Economics and Finance. 89, pp. 651-664. https://doi.org/10.1016/j.iref.2023.07.047
AuthorsAkhtaruzzaman, Md, Banerjee, Ameet Kumar, Le, Van and Moussa, Faten
Abstract

Our study investigates the role of impact investing as a risk management tool for precious metals (i.e., palladium, platinum, gold, and silver) in calm and turbulent times. The findings show that impact investing and precious metals portfolios have higher hedging effectiveness. Furthermore, the results show that the hedging effectiveness for the portfolio of gold and impact investing increased during the COVID–19 crisis. Finally, we find that when factoring the transaction cost in portfolios of impact investing and precious metals, investors at various levels of risk aversion gain higher utility. These findings contribute to the literature and interest of investors, policymakers, fund managers, and regulators.

KeywordsImpact investing ; Hedge ratio; COVID–19; Hedging effectiveness; Precious metals ; SDG ; Sustainable finance
Year01 Jan 2024
JournalInternational Review of Economics and Finance
Journal citation89, pp. 651-664
PublisherElsevier Science BV
ISSN1059-0560
Digital Object Identifier (DOI)https://doi.org/10.1016/j.iref.2023.07.047
Web address (URL)https://www.sciencedirect.com/science/article/pii/S1059056023002587?via%3Dihub
Open accessPublished as non-open access
Research or scholarlyResearch
Page range651-664
Publisher's version
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File Access Level
Mediated
Output statusPublished
Publication dates
Online29 Jul 2023
Publication process dates
Accepted24 Jul 2023
Deposited13 Sep 2024
Additional information

© 2023 The Authors. Published by Elsevier Inc.

This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).

Place of publicationNetherlands
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