UC Merced

The following thesis aims to comprehensively identify the reality of impact investing and its effect on the financial marketsthrough empirical and theoretical lenses encompassing four interrelated studies, each shedding light on different facets of the evolving impact investing landscape. The first study broadens the scope by analyzing B-corporations globally over 11 years, uncovering that market factors, rather than B certification, primarily drive performance. Building on these insights, the second study challenges prevailing notions about SRI's resilience during economic instability by examining a vast dataset across major economies in 2022, revealing minimal impact on portfolio performance. The third study expands the perspective by exploring the intricate relationship between corporate governance and financial markets, introducing AI as a catalyst for sustainable reform. The final research addresses methodological concerns by refining risk assessment tools, specifically enhancing the Ulcer Index to UI 2.6, to accurately capture investment drawdown severity to improve investment strategy and performance.