Psychological characteristics of potential SRI investors and its motivation in Japan: an experimental approach

Determinants of individual sustainable investment behavior - A framed field experiment

“…In contrast, Riedl and Smeets (2017) find a positive correlation between risk tolerance and the amount invested in sustainable equity funds, but no significant impact on the probability to invest in a sustainable manner. Similarly, Nakai et al (2018) find no significant effects on the stated preferences for investments in socially responsible companies.…”

“…Secondly, we contribute to studies on the determinants of individual sustainable investments (e.g. Nilsson, 2008;Bauer and Smeets, 2015;Riedl and Smeets, 2017;Nakai et al, 2018;Brodback et al, 2019;Pedersen, 2016, 2019;Rossi et al, 2019). In particular, we thereby extend the set of potential determinants by implementing all dimensions of economic preferences according to Falk et al (2018) as well as personality traits measured by the Big Five according to Gosling et al (2003), consequently mitigating potential omitted variable bias.…”

Investment Barriers and Labeling Schemes for Socially Responsible Investments

“…This is a typical procedure in SC experiments or conjoint analyses (e.g. Bassen et al 2019;Hartzmark and Sussman 2019;Nakai et al 2018;Wilcox 2003), which often comprise hypothetical scenarios, alternatives, or attributes. However, we included some typical techniques in order to mitigate potential hypothetical bias, as described below.…”

Who cares about sustainable investments?

“…This result is consistent with the results of Bauer and Smeets (2015), who maintain that risk-tolerant clients allocate a smaller amount of their investments to socially responsible banks, and of Bassen et al (2019), who conclude that risk-tolerant people attach less importance to the climate performance of investment funds compared to their financial performance. However, it contradicts Riedl and Smeets (2017), who report a positive association between risk tolerance and the amount invested in socially responsible equity funds, and Nakai et al (2018), who do not find any significant effects on the declared preferences for investments in socially responsible companies. Delsen and Lehr (2019), on the other hand, find no evidence that appetite for risk has any influence on preference for sustainability.…”