The paper “Investing with Brain or Heart? A Field Experiment on Responsible Investment” by Lars Jacob and his NHH colleague Trond Døskeland has been published in Management Science. The paper is based on a study conducted in collaboration with Skandiabanken, and addresses what drives responsible investment among private investors.
Management Science is a top-tier journal (level 4* on the ABS list) and is on the Financial Times Top 45 list as well as on Bloomberg Business Week’s Top 20 academic journal list. Through a creative commons licence, the paper is openly available. It can be downloaded here.
Here is the abstract of the paper:
“Socially responsible investment (SRI) is increasingly prevalent in financial markets and is characterized by the integration of financial and nonfinancial objectives. This paper investigates the influence of wealth concerns and moral concerns on individual investors’ decisions to invest responsibly. We conduct a unique natural field experiment of investors in an online banking context, wherein we frame responsible investment with regard to either wealth or morality and study investors’ subsequent behavior. We find that wealth framing is more effective than moral framing for both information search and investment behavior. Our study contributes to the literature by providing real-life insight into how prosocial decision making in financial markets can be promoted.”