What drives retail portfolio exposure to ESG factors?

D’Hondt, Catherine, Maxime Merli and Tristan Roger
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D’Hondt, Catherine: Université catholique de Louvain, LIDAM/LFIN, Belgium

No 2021020, LIDAM Reprints LFIN from Université catholique de Louvain, Louvain Finance (LFIN)

Abstract: Using both survey and trading data from 9,286 retail investors for the 2005–2011 period, we highlight the impact of financial literacy and risk tolerance on retail stock portfolio exposure to environmental, social and corporate governance (ESG) factors. Our results also reveal that the three ESG factors are not homogeneous and should be considered separately. Lower exposure to ESG factors during the crisis period suggests that ESG investing is a luxury good for most investors.

Keywords: ESG factors; Crises; Financial literacy; Risk tolerance; Retail investors (search for similar items in EconPapers)
JEL-codes: G11 G40 (search for similar items in EconPapers)
Pages: 8
Date: 2021-01-01
Note: In: Finance Research Letters, 2021, 102470
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ajf:louvlr:2021020

DOI: 10.1016/j.frl.2021.102470

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