Social identification and investment decisions

Bauer, Rob; Smeets, Paul

doi:10.1016/j.jebo.2015.06.006

Cited by 148 publications

(98 citation statements)

References 46 publications

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“…On the basis of the analysis of dedicated questionnaires collected from 109 individual investors (54 respondents classified as socially responsible, and 55 as conventional), the authors reported no significant relationship between investor type and age, education level, income, "ethical" profile (self-vs. other-centered), importance of return on investment, and decision-making style. The findings of MacLachlan and Gardner [21] are in contrast with the study of Bauer and Smeets [22], who found that social sensitivity and identification are stronger among highly educated, younger and low-wealth investors.…”

Section: Esg and Fund Managers-review Of The Literaturecontrasting

confidence: 92%

ESG Issues among Fund Managers—Factors and Motives

Przychodzeń¹,

Gómez‐Bezares

Przychodzeń

et al. 2016

Sustainability

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This paper investigates the motives, behavior, and characteristics shaping mutual fund managers' willingness to incorporate Environmental, Social and Governance (ESG) issues into investment decision making. Using survey evidence from fund managers from five different countries, we demonstrate that this predisposition is the stronger, the shorter their average forecasting horizon and the higher their level of reliance on business risk in portfolio management is. We also find that the propensity to incorporate ESG factors is positively related to an increasing level of risk aversion, an increasing importance of salary change and senior management approval/disapproval as motivating factors as well as length of professional experience in current fund and increasing significance of assessment by superiors in remuneration. Overall, our evidence suggests that ESG diligence among fund managers serves mainly as a method for mitigating risk and is typically motivated by herding; it is much less important as a tool for additional value creation. The prevalent use of ESG criteria in mitigating risk is in contrast with traditional approach, but it is in line with behavioral finance theory. Additionally, our results also show a strong difference in the length of the forecasting horizon between continental European and Anglo-Saxon fund managers.

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Section: Esg and Fund Managers-review Of The Literaturecontrasting

confidence: 92%

ESG Issues among Fund Managers—Factors and Motives

Przychodzeń¹,

Gómez‐Bezares

Przychodzeń

et al. 2016

Sustainability

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“…SRI studies on investor behavior continue to focus on individual and institutional investors. Noticeable trends include increasing attention on individual values and beliefs as drivers of SRI investor behavior (Bauer & Smeets, ; Diouf, Hebb, & Touré, ; Dumas & Louche, ; Durand, Koh, & Tan, ; Glac, ; Sandbu, ). Studies on the return sensitivity of SRI investors reveal that they are less concerned about negative performance (Martí‐Ballester, ; Peifer, ), even if they expect a certain level of financial return (Paetzold & Busch, ; Pérez‐Gladish, Benson, & Faff, ), and different groups of investors expect different returns (Berry & Junkus, ).…”

Section: Recent Research Trendsmentioning

confidence: 99%

A systematic literature review of socially responsible investment and environmental social governance metrics

2019

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Socially responsible investment (SRI) encompasses both ethical and financial paradigms. This systematic literature review explores three key research themes within the SRI literature, identifying a significant disconnect between themes and a fixation on the financial (as opposed to ethical) paradigm. One of the foundations of SRI is environmental, social, and governance (ESG) metrics. This review confirms the importance of ESG metrics in the SRI field, as they play two crucial roles, namely, as a proxy for sustainability performance and an enabler of the SRI market. However, there are two main issues related to ESG metrics that undermine their reliability: a lack of transparency and a lack of convergence.

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“…The classic theory would assume that SRI would only be chosen if it yields as well as conventional investments Bauer and Smeets, 2015). Investors would have to pay a moral fee if they want to include ethical considerations into their process of portfolio decisions (Belghitar et al, 2014).…”

Section: Socially Responsible Investment (Sri) -Definition and Historymentioning

confidence: 99%

Is Socially Responsible Investing (SRI) in Stocks a Competitive Capital Investment? A Comparative Analysis Based on the Performance of Sustainable Stocks

Blankenberg

Gottschalk

2018

SSRN Journal

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Social identification and investment decisions

Cited by 148 publications

References 46 publications

ESG Issues among Fund Managers—Factors and Motives

ESG Issues among Fund Managers—Factors and Motives

A systematic literature review of socially responsible investment and environmental social governance metrics

Is Socially Responsible Investing (SRI) in Stocks a Competitive Capital Investment? A Comparative Analysis Based on the Performance of Sustainable Stocks

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