Conform to the norm. Peer information and sustainable investments

Max Grossmann, Andreas Hackethal, Marten Laudi and Thomas Pauls

No 412, SAFE Working Paper Series from Leibniz Institute for Financial Research SAFE

Abstract: We conduct a field experiment with clients of a German universal bank to explore the impact of peer information on sustainable retail investments. Our results show that information about peers' inclination towards sustainable investing raises the amount allocated to stock funds labeled sustainable, when communicated during a buying decision. This effect is primarily driven by participants initially underestimating peers' propensity to invest sustainably. Further, treated individuals indicate an increased interest in additional information on sustainable investments, primarily on risk and return expectations. However, when analyzing account-level portfolio holding data over time, we detect no spillover effects of peer information on later sustainable investment decisions.

Keywords: Household Finance; Sustainable Finance; Experimental Finance; Financial Advice (search for similar items in EconPapers)
JEL-codes: C93 D14 G11 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-ban, nep-env, nep-exp and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:safewp:280963

DOI: 10.2139/ssrn.4673139

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