Personality differences and investment decision-making

Jiang, Zhengyang; Peng, Cameron; Yan, Hongjun

doi:10.1016/j.jfineco.2023.103776

Cited by 11 publications

(2 citation statements)

References 54 publications

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“…It is thus of great interest to investigate what the drivers of investor behaviour are. As evident in the literature, the intricacies of investor behaviour are influenced by an array of non-pecuniary factors that encompass investor sentiment, mood, genetic differences, individual characteristics and the experience of adverse and significant macroeconomic events and values (Jiang et al , 2024; Mishra et al , 2023; Mohammed et al , 2023; Rubbaniy et al , 2022) On the other hand, VBN theory states that value orientation drives people’s behaviour, suggesting that value orientation could influence investor behaviour.…”

Section: Literature Reviewmentioning

confidence: 99%

“…These disparities in investor reactions to ESG information can be attributed to many factors that extend beyond pecuniary considerations. Factors such as investor sentiment, mood, genetic variations, individual characteristics, the occurrence of adverse or significant macroeconomic events and deeply held personal values come into play (Jiang et al, 2024;Mishra et al, 2023;Mohammed et al, 2023;Rubbaniy et al, 2022). According to the valuebelief-norm (VBN) theory, an individual's values are instrumental in driving proenvironmental behaviour (Stern, 2000).…”

Section: Introductionmentioning

confidence: 99%

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Investor value orientation and environmental and social implications: a case of New Zealand agribusinesses

Perera

2024

SRJ

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Purpose This study aims to examine the value orientations of New Zealand agribusiness investors and how these orientations influence their reactions to the environmental and social implications of agribusinesses. Design/methodology/approach In the context of the New Zealand agricultural sector, the views of investors as published in print and broadcast media between 2018 and 2022 are gathered. The study uses qualitative content analysis to analyse the data. The study is based on the value-belief-norm theory. Findings The study reveals that New Zealand agribusiness investors express concern about the environmental (biospheric) and social (altruistic) impacts of the agribusiness sector, prompting calls for greater transparency, climate adaptation and ethical investment options. Additionally, they actively support local businesses to benefit their communities and preserve cultural heritage. Despite these biospheric and altruistic tendencies, investors also prioritise financial and non-financial interests (egoistic). This highlights a nuanced perspective guiding their investment choices – a balance between self-interest and contributing to the greater good. This signals a shift towards socially and environmentally responsible investment practices driven by multifaceted values. Research limitations/implications The findings of this study highlight the role of non-pecuniary motives, like values, in determining the relevance of environmental and social information. Practical implications The study’s findings offer insight to agribusinesses on how investors’ value orientations shape their investment decisions. This understanding can guide businesses in framing a reporting strategy that enhances the likelihood of investors perceiving reporting as relevant and persuasive, thereby attracting more investments. In turn, this tailored reporting approach assists investors in making well-informed decisions in assessing the environmental and societal risks of agribusinesses. Originality/value The study offers a framework explaining how agribusinesses can increase the likelihood of investors finding firms reporting relevant and persuasive, leading to increased investments in environmentally and socially sustainable practices.

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