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

Author(s): Marcel Seifert, Florian Spitzer, Simone Haeckl, Alexia Gaudeul, Erico Kirchler, Stefan Palan, Katharina Gangl
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.
Organisation(s): Department of Occupational, Economic and Social Psychology
External organisation(s): IHS - Institut für Höhere Studien und wissenschaftliche Forschung, Vienna Doctoral School of Ecology and Evolution, University of Stavanger, Commiss European Communities, Joint Res Ctr, Inst Reference Mat & Measurements, Karl-Franzens-Universität Graz
Journal: Journal of Banking & Finance
Volume: 161
ISSN: 0378-4266
DOI: https://doi.org/10.1016/j.jbankfin.2024.107114
Publication date: 2024
Peer reviewed: Yes
Austrian Fields of Science 2012: 501029 Economic psychology
Keywords
ASJC Scopus subject areas: Economics and Econometrics, Finance
Portal url: https://ucrisportal.univie.ac.at/en/publications/08116191-98d3-4f70-8cd0-7c2641baf827