Inertia and discounting in the selection of socially responsible investments

Auger, Pat; Devinney, Timothy M.; Dowling, Grahame R.; Eckert, Christine

doi:10.1108/asr-07-2016-0006

Cited by 9 publications

(6 citation statements)

References 29 publications

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“…, 2020). Several studies found inertia was a crucial indicator of individuals' resistance behaviour (Polites and Karahanna, 2012; Auger et al. , 2016; Amoroso and Lim, 2017; de Mesquita and Urdan, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Further, the uncertainty towards compatibility with new technology plays a crucial role in causing consumer inertia, leading to resistance behaviour towards the adoption of new technology (Seth et al, 2020). Several studies found inertia was a crucial indicator of individuals' resistance behaviour (Polites and Karahanna, 2012;Auger et al, 2016;Amoroso and Lim, 2017;de Mesquita and Urdan, 2019).…”

Section: Regret Avoidancementioning

confidence: 99%

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Explaining resistance intention towards mobile HRM application: the dark side of technology adoption

Shankar

Nigam

2021

IJM

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PurposeThe mobile human resource management application (mHRM app) has recently been seen as an innovative cloud-based solution to manage human resource management (HRM) within organisation. Despite its great potential, organisations have shown resistance towards the usage of the mHRM app. This study investigates the dark side of electronic HRM (eHRM) by examining factors affecting HR professionals' resistance to the mHRM app using status quo bias (SQB) theory. The study also examines the moderating effect of personal innovativeness.Design/methodology/approachResponses were collected from 239 HR professionals using an online survey. Structural equation modelling (SEM) and PROCESS macro were used to examine the hypotheses.FindingsThe results indicated that regret avoidance, inertia, switching costs and perceived threat significantly affect HR professionals' resistance towards mHRM app adoption. Results also indicated that high personal innovativeness negatively moderates the association between inhibitors and resistance to adopt the mHRM app.Practical implicationsThe study's findings will help HR professionals reduce their resistance towards mHRM app adoption.Originality/valueThis study enriches eHRM, mobile applications and the SQB literature.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Regret Avoidancementioning

confidence: 99%

Explaining resistance intention towards mobile HRM application: the dark side of technology adoption

Shankar

Nigam

2021

IJM

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“…Evidence shows that subjects' social consciousness is likely to influence their perceived risk associated with the performance of firms (Auger et al, 2012). Our earlier discussion shows that social consciousness focuses on individuals' responsibility for society.…”

Section: Imefm 164mentioning

confidence: 88%

Financial analysts’ personal values, perceived behavioural risk and investment decisions in evaluating CSR

Shahid

Tufail

Ali

et al. 2023

IMEFM

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Purpose This paper aims to contribute to the corporate social responsibility (CSR) literature by providing holistic insights into financial analysts’ personal values, perceived behavioural risk and investment decisions relating to the social aspects of CSR. Specifically, this paper examines whether analysts’ personal values, such as religiosity, spirituality and social consciousness, influence their investment decisions relating to a highly profitable firm that is alleged of exploiting labour rights. This study also examines the mediating role of analysts’ perceived behavioural risk between personal values and investment decisions. Design/methodology/approach Data were collected, using a scenario-based survey, from 145 financial analysts at both public and private companies in Pakistan. Findings The results show that analysts’ values, including religiosity, spirituality and social consciousness, have a significant negative impact on their investment decisions. The results also demonstrate that perceived behavioural risk mediates the relationship between these values and investment decisions. Practical implications This study has implications for the globalised business world, regulators and researchers for incorporating personal and ethical values into risk and investment decision-making. Originality/value This study establishes the importance of analysts’ personal values in risky investment decision-making.

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“…Further mediation test shows that the difference in portfolio risk levels partly accounts for the performance discrepancy between RA and human investors. Based on insights from the behavioral finance literature, we point out that human investors did not actively reduce the risk of their portfolios, potentially due to the status quo bias (Auger et al., 2016; Dulebohn & Murray, 2007). In other words, the RA's success is not a result of more frequent trading (i.e., it had a similar trading frequency as human investors), but can be partially attributed to more adaptive, risk‐conscious trading (i.e., making necessary trades via rebalancing transactions to lower the portfolio risk during market downturn).…”

Section: Discussionmentioning

confidence: 99%

Judge me on my losers: Do robo‐advisors outperform human investors during the COVID‐19 financial market crash?

Liu

Yang

Wen

2023

Production and Operations Management

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As financial institutions increasingly offer robo‐advisors (RAs) as a service, the empirical evidence on their performance, particularly during market downturns, remains limited. We study the impact of using RAs on investment performance during the 2020 financial crisis caused by the COVID‐19 global pandemic. We obtain daily portfolio and transaction data of investors on an online investment platform. Besides making investment decisions by themselves, investors can also leverage an RA system offered by the platform. We match RA users with other investors who did not use the RA with similar investor and portfolio characteristics before the market crash, then compare their portfolio returns after the crash. We find that RA users experienced significantly fewer losses during the market downturn, and this performance advantage came from the RA‐managed assets (rather than assets managed by RA users themselves). We further show that the RA system adjusted its portfolios to hold less risky funds, whereas human investors stayed with their status quo and did not reduce the risk of their portfolios, which partly accounted for the performance discrepancy. Importantly, the RA’s superior performance was not simply a continuation of its performance in a normal market; in fact, we find RA users to have similar portfolio returns as non‐RA investors during normal markets, and the benefits of RA's risk‐reduction trading strategy only manifested during the financial crisis. Our work offers an empirical assessment of RAs’ performance under different market conditions and advances the understanding of algorithmic decision making in financial markets.

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Inertia and discounting in the selection of socially responsible investments

Cited by 9 publications

References 29 publications

Explaining resistance intention towards mobile HRM application: the dark side of technology adoption

Explaining resistance intention towards mobile HRM application: the dark side of technology adoption

Financial analysts’ personal values, perceived behavioural risk and investment decisions in evaluating CSR

Judge me on my losers: Do robo‐advisors outperform human investors during the COVID‐19 financial market crash?

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