Can information provision and preference elicitation promote ESG investments? Evidence from a large, incentivized online experiment

Seifert, MarcelORCID: https://orcid.org/0000-0002-8709-0939; Spitzer, FlorianORCID: https://orcid.org/0000-0002-7915-3266; Haeckl, Simone; Gaudeul, Alexia; Kirchler, ErichORCID: https://orcid.org/0000-0003-4731-1650; Palan, Stefan and Gangl, KatharinaORCID: https://orcid.org/0000-0001-6009-3358 (2024) Can information provision and preference elicitation promote ESG investments? Evidence from a large, incentivized online experiment. Journal of Banking & Finance, 107114. DOI: 10.1016/j.jbankfin.2024.107114

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Abstract

Sustainable investing is characterized by considerations of both financial returns and ESG (Environmental, Social and Governance) impacts. We investigate how information about these two aspects, individually and in combination, affects investors’ decision to invest sustainably and their satisfaction with the information they received. We also test whether different ESG preference elicitation modes affect these investment decisions and investors’ satisfaction. We conduct an incentivized online experiment with two samples, experienced retail investors and a representative sample of the Austrian population in terms of age and gender (N = 2,254 in total). We find that both financial return information and ESG impact information stimulate ESG investment. Providing both types of information does not have a greater effect than presenting either one alone. Finally, we find no effect on satisfaction and the ESG preference elicitation mode significantly affects neither investment decisions nor satisfaction.

Item Type: Article in Academic Journal
Keywords: ESG investment, ssustainable investments, financial advice, investor behavior, financial return information, ESG impact information, incentivized experiment, preregistered
Funders: Jubiläumsfonds (OeNB)
Classification Codes (e.g. JEL): D90, G11, M14, G53
Research Units: Current Research Groups > Behavioral Economics
Date Deposited: 19 Feb 2024 10:02
Last Modified: 19 Feb 2024 10:02
DOI: 10.1016/j.jbankfin.2024.107114
ISSN: 0378-4266
URI: https://irihs.ihs.ac.at/id/eprint/6900

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