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/can-information-provision-and-preference-elicitation-promote-esg-investments-evidence-from-a-large-incentivized-online-experiment(08116191-98d3-4f70-8cd0-7c2641baf827).html