Request for Proposals
Submissions
The Externality Investment Research Network‘s (EIRN) goals are to encourage, initiate, incubate, collect, coordinate, and disseminate research by academics, practitioners, and others on the financial impact of the economic externalities generated by portfolio companies on asset owners’ and asset managers’ portfolios. This includes research and thinking that has sometimes been called the “whole portfolio effect” or the “universal owner effect”.
Current State of Research and the need for Translation into Finance
To date, research in this area has been primarily qualitative and case based and/or focused on economic analysis. It has not been ‘translated’ into the financial (or financial economics). The initial goal of EIRN is to stimulate complementary quantitative studies and develop models, analytics and methods. The second goal of the project is to analyze various implications of this research, e.g. for fiduciary duty, investors and beneficiaries, civil society sectors and communities, and the environment.
The Universal Owner Effect: From Theory to Practice
To date the universal owners or whole portfolio effect (system-level investing) is widely recognized among many large institutional investors and academics as a coherent finance theory; more specifically, it is a ‘perspective’ or ‘philosophy’. While these perspectives and philosophies are helpful general guides, meaningful and useful tools to apply the theory in practice require quantitative analysis. There are essentially very few (indeed, almost no) studies (academic or practitioner) which quantify the externality effects of portfolio firms on portfolios themselves.
Investment Gaps and Misaligned Internal Practices
This means that the valuation and risk profiles are underestimated in the allocation, pricing, and structuring of capital for negative externalities, while positive externalities are barely considered. While stewardship teams may be guided by the theory behind universal ownership, it may be more difficult for Chief Investment Officers, portfolio managers, analysts, and deal teams to consider such factors given a lack of tools. This gap may leave investment and stewardship teams within the same institution misaligned.
Addressing Valuation Flaws through Research
EIRN-stimulated research among academics and others will begin to remedy flawed risk and valuation analyses as financial academic work has had significant adoption impact on financial markets.
Call for Proposals
EIRN is accepting research proposals that are primarily focused on quantitative analysis and methods that look at universal owner/whole portfolio effects. EIRN will fund accepted proposals for support of up to $50,000. Proposals are solicited from academics, those affiliated with nonprofit organizations and individuals working at companies in related business sectors that are determined by EIRN, in its sole discretion, to be reliably committed to fostering development of relevant unbiased and fact-based research and analysis.
Your application should include:
EIRN board members and staff as well as EIRN’s expert advisors are happy to have informal preliminary discussion with prospective researchers. Such discussions can be set up via email at the EIRN website. Finished proposals may be submitted via the website portal. EIRN reserves the right to modify, suspend or cancel this solicitation at any time.
Questions and clarification can be had from contact@eirnetwork.org
Submit proposals by July 15, 2025
If funds remain after July 15, proposals will be considered on a rolling, first come basis. Unless otherwise agreed to in writing, EIRN is not responsible for costs or expenses incurred in preparation of any proposal or for any claims or liabilities associated with third party research funded by EIRN.