Lars Jacob and his NHH colleague Trond Døskeland have recently had the paper “Investing with Brain or Heart: A Field Experiment on Responsible Investment” accepted for publication in the top-tier journal Management Science. The journal is among the 45 academic journals on the Financial Times-listen and on the top 20 list of Bloomberg Businessweek.
The paper is based on a large-scale field experiment on Skandiabanken’s ethical labeling system for mutual funds, and reveals drivers of individual investors’ decision to invest responsibly.
Here is the abstract:
“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.”
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