Sustainable Investment Preferences among Robo-Advisor Clients

Ida Ayu Agung Faradynawati () and Inga-Lill Söderberg
Additional contact information
Ida Ayu Agung Faradynawati: Department of Real Estate and Construction Management, The Royal Institute of Technology, 10044 Stockholm, Sweden
Inga-Lill Söderberg: Department of Real Estate and Construction Management, The Royal Institute of Technology, 10044 Stockholm, Sweden

Sustainability, 2022, vol. 14, issue 19, 1-16

Abstract: The increasing role of individual investors in supporting the achievement of sustainable development goals through sustainable investment has gained growing interest from financial authorities and the research community. Digitalization in the financial sector, e.g., robo-advisors, enables lay-investors to make sustainable investments in a simple and convenient way. This study investigates whether investment-related attitudes and demographic profiles are related to robo-advisor clients’ sustainable investment choices. This paper describes an empirical study that uses a logistic regression model to investigate sustainable investment preferences at the individual investor level. Cross-sectional data consisting of 27,771 individual investors in Sweden, Norway, and Finland, who purchased investment products through a robo-advisor application, are used in this study. The results suggest that, concerning investment-related attitudes, robo-advisor clients with low-risk tolerance and a short investment horizon are more likely to choose to become sustainable investors. Furthermore, sustainable investments are preferred by robo-advisor clients who are less wealthy, female, and older.

Keywords: sustainable investment; robo-advisor; digital wealth management; risk–return preference; investment horizon; sociodemographic factors (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/19/12636/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/19/12636/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:19:p:12636-:d:933571

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().