Why Do Investors Hold Socially Responsible Mutual Funds?

Riedl, Arno; Smeets, Paul

doi:10.1111/jofi.12547

Cited by 890 publications

(486 citation statements)

References 85 publications

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“…Several studies provide evidence that prosocial attitudes and behavior are positively related to self‐reported SRI holdings (Gutsche, Köbrich León, & Ziegler, ; Nilsson, ; Wins & Zwergel, ). In line with this evidence, Riedl and Smeets () find that social preferences are positively related to holdings in SRI mutual funds. However, social preferences are not the only reason why people invest responsibly.…”

Section: Introductionmentioning

confidence: 64%

“…We argue that the relation between altruistic values and behavior also holds for investment decisions. Socially responsible investors have higher donations to charity as well as higher social preferences (Jansson & Biel, ; Nilsson, ; Riedl & Smeets, ; Wiesel et al ., ; Wins & Zwergel, ). We argue that these investors will be intrinsically motivated (Andreoni, ; Beal, Goyen, & Philips, ) and engage in SRI because of their altruistic values.…”

Section: Hypothesesmentioning

confidence: 99%

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Altruism and egoism in investment decisions

Brodback

Guenster

Mezger³

2019

Rev Financ Econ

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We provide survey evidence that personal values have an impact on individual investment decisions, in particular preferences for socially responsible investing. Our findings show that there is a positive link between altruistic values and the relative importance of social responsibility. This effect is stronger when individuals believe that they can make a positive social or environmental impact with their investments, or when they feel morally obliged to invest responsibly. If altruistic individuals associate responsible investments with higher returns, it decreases their motivation to invest responsibly. Egoistic values are negatively associated with the decision to invest responsibly, unless individuals associate responsible investing with higher returns.

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Section: Introductionmentioning

confidence: 64%

Section: Hypothesesmentioning

confidence: 99%

Altruism and egoism in investment decisions

Brodback

Guenster

Mezger³

2019

Rev Financ Econ

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“…In the case of SRI, it is often stated that investors are deterred from investing in SRI because SRI are expected to perform systematically worse than conventional investments and have higher management fees (Gutsche and Zwergel, 2016;Riedl and Smeets, 2016;Benson and Humphrey, 2008). The degree of diversification of an SRI portfolio itself seems to be limited because of the restricted investment universe (van Liedekerke et al, 2007).…”

Section: Competitiveness Of Sri Investmentsmentioning

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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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in

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“…For example, Clark, Lusardi, and Mitchell () report a response rate of approximately 17% for a sample of 16,000 employees. Riedl and Smeets () contacted approximately 38,000 investors and obtained response rates of 8% for conventional investors and 12% for socially responsible investors. In both of these cases, subjects were contacted via email as opposed to our approach of contacting them over the phone.…”

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confidence: 99%

Financial Literacy and Portfolio Dynamics

Bianchi

2018

The Journal of Finance

206

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We match administrative panel data on portfolio choices with survey measures of nancial literacy. When we control for portfolio risk, the most literate households experience 0.4% higher annual returns than the least literate households. Distinct portfolio dynamics are the key determinant of this di erence. More literate households hold riskier positions when expected returns are higher. They more actively rebalance their portfolios and do so in a way that holds their risk exposure relatively constant over time. They are more likely to buy assets that provide higher returns than the assets that they sell.I thank the editor and an anonymous referee for very detailed and constructive comments as well as Bruno Biais, Alexander Guembel, S ebastien Pouget, Jean-Marc Tallon for very useful discussions. I also thank Henri Luomaranta for excellent research assistance and AXA, Amundi and SCOR Research Funds for nancial support. I have no relevant or material nancial interests that relate to the research described in this paper.

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Why Do Investors Hold Socially Responsible Mutual Funds?

Cited by 890 publications

References 85 publications

Altruism and egoism in investment decisions

Altruism and egoism in investment decisions

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

Financial Literacy and Portfolio Dynamics

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