Commitment among ethical investors: An experimental approach

Webley, Paul; Lewis, Alan; Mackenzie, Craig

doi:10.1016/s0167-4870(00)00035-0

Cited by 150 publications

(99 citation statements)

References 17 publications

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“…However, fewer studies have investigated the dual nature of investor motivesthe combined desire for financial returns and nonwealth returns such as moral benefits and status. Prior lab experiments have suggested that moral or valueexpressive benefits are of primary concern to responsible investors (Webley et al 2001, Statman 2004, Beal et al 2005, Glac 2009, Barreda-Tarrazona et al 2011. Furthermore, Bollen (2007) finds that investors are more loyal to poorly performing SRI funds than to poorly performing regular funds, which suggests that investors emphasize morality.…”

Section: Døskeland and Pedersen: Investing With Brain Or Heart?mentioning

confidence: 97%

Investing with Brain or Heart? A Field Experiment on Responsible Investment

Døskeland

Pedersen²

2016

Management Science

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S ocially responsible investment is increasingly prevalent in financial markets and is characterized by the integration of financial and nonfinancial objectives. This paper investigates the influence of wealth concerns and moral concerns on individual investors' decisions to invest responsibly. We conduct a unique natural field experiment of investors in an online banking context, wherein we frame responsible investment with regard to either wealth or morality and study investors' subsequent behavior. We find that wealth framing is more effective than moral framing for both information search and investment behavior. Our study contributes to the literature by providing real-life insight into how prosocial decision making in financial markets can be promoted.

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Section: Døskeland and Pedersen: Investing With Brain Or Heart?mentioning

confidence: 97%

Investing with Brain or Heart? A Field Experiment on Responsible Investment

Døskeland

Pedersen²

2016

Management Science

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“…Some former studies (e.g., Lewis and Mackenzie 2000a;Webley et al 2001) differentiate SR and conventional investors ex ante by asking the participants of their questionnaire whether they have already invested in SR products. Generally, there is no valid approach on how to differentiate between SR and conventional investors.…”

Section: Questionnaire Developmentmentioning

confidence: 99%

“…Webley et al (2001) report that ethical investors have the need to invest their money in ways that are consistent with their personal values. This also implies that they are generally committed to their SR investments, even if they perform poorly or are ethically ineffective.…”

Section: Introductionmentioning

confidence: 99%

“…Furthermore, several studies show that many SR investors mix their portfolio with SR and conventional investments (Mackenzie and Lewis 1999;Lewis and Mackenzie 2000a;Webley et al 2001;Lewis 2001). This result implies that it appears to be sufficient to invest a certain amount to achieve social or ethical objectives which are pursued by implementing SRI.…”

Section: Introductionmentioning

confidence: 99%

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Which proportion of SR investments is enough? A survey-based approach

Dorfleitner

Nguyen

2016

Bus Res

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This article examines the determinants of the optimal percentage that private investors seek to invest in a socially responsible (SR) way when forming their portfolio. By conducting a global online survey in English, German and French, we find indications that it is sufficient for the majority of investors to have a certain amount of their budget invested sustainably. Accordingly, the optimal proportion tends to be lower the higher the available investment volume is. In addition, the non-financial utility derived from SR investments appears to be independent of the form of financing the investor provides. Moreover, the results show that well-educated women and slightly younger persons seek to invest a higher percentage of their portfolio socially responsibly.

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“…This approach posits that social responsibility requires the sacrifi ce of self-interest for social progress, implying that SR investors must be willing to pay an ethical penalty. 47,48 Thus, we can expect these investors to accept lower rates of return on investments that advance social objectives. Researchers suggest that psychic income can compensate SR investors for fi nancial losses.…”

mentioning

confidence: 99%

Not everybody wants to save the world

Kashyap

Iyer

2009

J Financ Serv Mark

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A consumer lens is used to examine investing behavior in this study. The study focuses on the importance given by investors to their economic and social investing goals (SIG). This approach redirects managerial attention from the investment to the investor and investing goals . The study fi nds that differences in environmental attitude, social investing effi cacy, materialism, religiosity and protected values can explain disparities in investing goals. The fi ndings suggest a segmentation approach based on differences in antecedent effects and economic and SIG.

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Commitment among ethical investors: An experimental approach

Cited by 150 publications

References 17 publications

Investing with Brain or Heart? A Field Experiment on Responsible Investment

Investing with Brain or Heart? A Field Experiment on Responsible Investment

Which proportion of SR investments is enough? A survey-based approach

Not everybody wants to save the world

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