Household Preferences for Socially Responsible Investments

Mariacristina Rossi, Dario Sansone, Costanza Torricelli and Arthur van Soest (avas@uvt.nl)

Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) from Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi"

Abstract: We analyze revealed and stated household preferences for socially responsible investments (SRI). Using a questionnaire specifically designed for this purpose and administered to a Dutch representative household panel, we investigate the actual and latent demand for SRI products. Respondents reported whether they owned SRI products and why or why not, but also answered stated choice questions on traditional investments and hypothetical socially responsible products with an explicit return penalty and/or an inkind compensation associated with lower return. Our results show that investors attracted by socially responsible financial products are more interested in the social product as such and show little interest in compensation. The magnitude of the penalty for investing in SRI is not diluting their investment intentions.

Keywords: Ethical mutual funds; Personal finance, Investor behavior (search for similar items in EconPapers)
JEL-codes: D14 G11 M30 (search for similar items in EconPapers)
Pages: pages 40
Date: 2018-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Household preferences for socially responsible investments (2019)
Working Paper: Household Preferences for Socially Responsible Investments (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:mod:wcefin:0066

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