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

Marcel Seifert, Florian Spitzer, Simone Haeckl, Alexia Gaudeul, Erich Kirchler, Stefan Palan () and Katharina Gangl

Journal of Banking & Finance, 2024, vol. 161, issue C

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.

Keywords: ESG investments; Sustainable investments; Financial advice; Investor behavior; Financial return information; ESG impact information; Incentivized experiment; preregistered (search for similar items in EconPapers)
JEL-codes: D90 G11 G53 M14 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:161:y:2024:i:c:s0378426624000347

DOI: 10.1016/j.jbankfin.2024.107114

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