EconPapers    
Economics at your fingertips  
 

Portfolio instability and socially responsible investment: Experiments with financial professionals and students

Olga Tatarnikova, Sébastien Duchêne (), Patrick Sentis and Marc Willinger
Additional contact information
Olga Tatarnikova: ESSCA Research Lab - ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers, CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier
Sébastien Duchêne: Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School
Patrick Sentis: MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier

Post-Print from HAL

Abstract: fficiency of SRI portfolios is commonly assessed based on an inconclusive risk-return ratio. We propose to approach the efficiency of portfolios with the notion of instability. Unstable portfolios are characterized by higher transaction costs and human resources costs that justify search for more stable portfolios. We examine the instability of SRI portfolios from the perspective of behavioral finance. Based on data from incentivized experiments with 153 financial professionals and 233 students, we compare a baseline treatment to a ranking treatment in which participants received feedback regarding their average investment in SRI assets. We found that SRI portfolios had significantly lower instability: portfolios with a majority of SRI shares exhibited less instability in both treatments compared to conventional portfolios. Moreover, in the ranking treatment subjects invested more in SRI assets than in the baseline. In addition, the experiment revealed the convergence of professionals' and students' behavioral patterns.

Keywords: Behavioral finance; Experimental economics; Financial asset markets; Portfolio instability; Socially responsible investment (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Published in Journal of Economic Dynamics and Control, 2023, 153, pp.104702. ⟨10.1016/j.jedc.2023.104702⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Portfolio instability and socially responsible investment: Experiments with financial professionals and students (2023) Downloads
Working Paper: Portfolio instability and socially responsible investment:experiments with financial professionals and students (2022) Downloads
Working Paper: Portfolio instability and socially responsible investment:experiments with financial professionals and students (2022) Downloads
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:hal:journl:hal-04168199

DOI: 10.1016/j.jedc.2023.104702

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2024-03-31
Handle: RePEc:hal:journl:hal-04168199