Abstract
Over the past 8 years, social impact bonds (SIBs) have attracted increasing attentionfrom scholars, policy makers, and investors. Notwithstanding good intentions andpolicy makers’ enthusiasm, SIBs have failed to attract significant private capital.Considering the SIBs issued worldwide until December 2017, we look for the criticalsuccess factors of SIB funding by investigating both the financial and contractualcharacteristics of SIB contracts. We find that institutional investors are more likely toparticipate in an SIB funding when there are fewer agency problems.
Keywords
social impact bonds, NPOs, institutional investors, impact investing
