Investor Attitudes, Investment Screen Use, and Socially Responsible Investment Behavior

Dilla, William N.; Janvrin, Diane J.; Perkins, Jon D.; Raschke, Robyn L.

doi:10.2139/ssrn.2260051

Cited by 4 publications

(9 citation statements)

References 30 publications

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“…For the post-task questions, participants were asked to rate the questions on an 11-point scale with regard to the extent to which the CSR information was relevant to their investment decision. In addition, they were also asked to respond to the questions relating to their socially and environmentally responsible investment attitude (Dilla et al, 2013) as well as to rank the CSR activities that they perceived as relevant to the pulp and paper industry. Using an 11-point scale adapted from Dilla et al (2013), the three questions related to (1) the importance of including socially and environmentally responsible investments in the portfolio; (2) the belief that firms that are socially and environmentally aware yield higher returns for their shareholders; and (3) whether they would continue to invest in a firm in which the CSR performance was one of the best in its industry even if its financial performance was average or below average.…”

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

“…, 2013) as well as to rank the CSR activities that they perceived as relevant to the pulp and paper industry. Using an 11-point scale adapted from Dilla et al. (2013), the three questions related to (1) the importance of including socially and environmentally responsible investments in the portfolio; (2) the belief that firms that are socially and environmentally aware yield higher returns for their shareholders; and (3) whether they would continue to invest in a firm in which the CSR performance was one of the best in its industry even if its financial performance was average or below average.…”

Section: Methodsmentioning

confidence: 99%

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The interaction of corporate social responsibility (CSR) materiality and explicit assessment on willingness to invest: perception of financial analysts

Pratoomsuwan

Chiaravutthi

2022

AJAR

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PurposeRecent research finds that the effect of corporate social responsibility (CSR) information, especially when CSR is not related to core business activities (immaterial CSR issues), on investment decisions will be eliminated when it is explicitly assessed. As CSR expectations from investors appear to be different across specific cultures and countries (Van der Laan Smith et al., 2010), we aim to investigate (1) the effect of CSR materiality on investors' willingness to invest and (2) how the explicit assessment of CSR information moderates the effect of explicit assessment and CSR materiality on investment judgment by professional investors in Thailand.Design/methodology/approachA 2 × 2 between-subject experiment was conducted based on 136 professional investors.FindingsOverall, the results suggest that an investor's willingness to invest is greater when CSR is material than when CSR is immaterial. In addition, the assessment of willingness to invest in a firm's stock is not affected by the presence or absence of explicit assessment of the material CSR. However, the results suggest that when CSR issues are immaterial, explicit assessment significantly removes the effect of CSR performance on the investor's investment judgment. Consistent with the findings from Guiral et al. (2019), professional investors seem to process CSR information in a similar way as nonprofessional investors.Practical implicationsThe findings suggest that material CSR information has a significant impact on the investment decisions of professional investors. This is consistent with the materiality guidance provided by the Sustainability Accounting Standard Board (SASB) as helpful in improving the value of CSR information for investors. These results should be of interest to both business people and regulators because, despite differences in the cultural and audit environment, the results confirm that professional investors in Thailand use CSR information in an experimental setting, thereby providing some evidence of value creation from CSR activities and nonfinancial disclosures.Originality/valueWhile recent experimental research has primarily examined how nonprofessional investors evaluate CSR information in Western countries, this study extends the literature by focusing on professional investors in emerging capital markets and how they use CSR information in their investment decisions (Coram et al., 2009). The study also addresses the call for research on differences in CSR reporting and practices in different cultures and countries (Van der Laan Smith et al., 2010; Coram et al., 2009) to provide insights into how professional investors in Thailand use CSR information to formulate investment judgments.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

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The interaction of corporate social responsibility (CSR) materiality and explicit assessment on willingness to invest: perception of financial analysts

Pratoomsuwan

Chiaravutthi

2022

AJAR

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“…In this regard, we propose a hypothesis suggesting that participants who perceive a positive correlation between investing in sustainable finance instruments and environmental advantages are more likely to exhibit a favorable investment attitude. Dilla et al (2013) [12] analyze the link between investors' environmental attitudes and actual investment in socially responsible instruments. Results indicate that investors with green environmental attitudes are prone to using socially responsible investment screening, which, in turn, results in investing in socially responsible instruments.…”

Section: Environmental Values and Investment Attitudesmentioning

confidence: 99%

“…We have formulated our hypotheses based on Bandura's self-efficacy theory [10] and Vroom's expectancy theory [11].The importance of our study lies in its contribution to understanding how sustainable finance literacy and environmental awareness influence sustainable investment attitudes, thereby enriching the broader conversation on the role of sustainable finance in promoting global sustainability goals. Previous studies, as highlighted by Dilla (2013) [12] and Anderson and Robinson [9], have primarily focused on the influence of environmental literacy and green values among prospective investors on their attitudes toward sustainability. Our unique contribution lies in exploring how the perceived environmental impact of investments in sustainable finance shapes these attitudes.The results provide some insights and recommendations on how to boost sustainable finance investment attitudes in developing countries.…”

Section: Introductionmentioning

confidence: 99%

Sustainable Investment Attitudes Based on Sustainable Finance Literacy and Perceived Environmental Impact

Yucel,

Celik,

Yilmaz

2023

Sustainability

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The aim of this study is to examine whether sustainable finance literacy and the perceived environmental impact of sustainable finance instruments exert substantial influence over the sustainable investment attitudes of investors within the developing country setting of Ankara, Türkiye. Following a systematic literature review, an online survey was designed and conducted. Multivariate regression models were used for the analysis. The findings illustrate that individuals with a greater level of sustainable finance literacy and a positive perception of the favorable environmental effects of sustainable finance instruments tend to exhibit a positive investment stance and are more likely to invest in sustainable finance instruments. Among the questions related to sustainable finance literacy, the most significant factor in explaining sustainable investment attitude is the knowledge of how sustainable finance instruments can be utilized for risk diversification. In addition, it is depicted that individuals with higher income levels exhibit a favorable disposition toward sustainable finance instruments. The results of our study imply that, to stimulate sustainable investments in developing countries, regulatory authorities and sustainable fund issuers such as financial corporations can enhance promotional campaigns and workshops aimed at increasing awareness and understanding of sustainable finance literacy, sustainable financial instruments, and their positive impact on the environment.

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Socially responsible investment: An analysis of the structure of preferences of savers

Mera

Palacios-González

2019

Corp Soc Responsibility Env

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Ethical and charity financial products can be considered as a tool that drives the corporate social responsibility of the financial institutions and, indirectly, that of the companies that try to capture financial resources through them. The objective of this study is to identify the structure of preferences of savers to identify the relative importance of those attributes linked to socially responsible investment. The results allow for an estimation of the market potential of a socially responsible savings deposit and ethical banking.A survey was conducted on 415 Spanish savers, and the analysis has been carried out using conjoint analysis technique.Taking into account the characteristics of their preferences, four groups of savers have been identified: "potential socially responsible savers," "charitable savers,""savers focused on financial return," and "conventional savers based on availability." Some socio-demographic variables are relevant when describing segments of savers: age, educational level, and income level.

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Investor Attitudes, Investment Screen Use, and Socially Responsible Investment Behavior

Cited by 4 publications

References 30 publications

The interaction of corporate social responsibility (CSR) materiality and explicit assessment on willingness to invest: perception of financial analysts

The interaction of corporate social responsibility (CSR) materiality and explicit assessment on willingness to invest: perception of financial analysts

Sustainable Investment Attitudes Based on Sustainable Finance Literacy and Perceived Environmental Impact

Socially responsible investment: An analysis of the structure of preferences of savers

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