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Examining socially responsible investment preferences: A discrete choice conjoint experiment

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  • Apostolakis, George
  • van Dijk, Gert
  • Kraanen, Frido
  • Blomme, Robert J.

Abstract

Using a hierarchical Bayesian estimation of a discrete choice conjoint model, this research examines preferences for different responsible investment characteristics from the perspective of pension beneficiaries. We conducted a choice-based conjoint experiment in which participants were invited to select a preferred investment portfolio among different options by combining attributes such as socially responsible investments and impact investments. Based on a sample of 334 respondents, the results show the utility and relative importance that members of the administrative organization of a Dutch pension fund with a cooperative structure attach to the socially responsible portfolio. Latent class analysis yielded three segments of pension beneficiaries with different levels of psychological distance toward socially responsible investments.

Suggested Citation

  • Apostolakis, George & van Dijk, Gert & Kraanen, Frido & Blomme, Robert J., 2018. "Examining socially responsible investment preferences: A discrete choice conjoint experiment," Journal of Behavioral and Experimental Finance, Elsevier, vol. 17(C), pages 83-96.
    • Handle: RePEc:eee:beexfi:v:17:y:2018:i:c:p:83-96
    DOI: 10.1016/j.jbef.2018.01.001
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    2. Lagerkvist, C.J. & Edenbrandt, A.K. & Tibbelin, I. & Wahlstedt, Y., 2020. "Preferences for sustainable and responsible equity funds - A choice experiment with Swedish private investors," Journal of Behavioral and Experimental Finance, Elsevier, vol. 28(C).
    3. Syrus M. Islam & Asheq Rahman, 2023. "Impact investment deal flow and Sustainable Development Goals: “Mind the gap?”," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 3797-3813, December.
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    5. Beatrice Boumda & Darren Duxbury & Cristina Ortiz & Luis Vicente, 2021. "Do Socially Responsible Investment Funds Sell Losses and Ride Gains? The Disposition Effect in SRI Funds," Sustainability, MDPI, vol. 13(15), pages 1-14, July.
    6. Meunier, L. & Ohadi, S., 2023. "Exclusion strategy in socially responsible investment: One size does not fit all," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).
    7. Gunnar Gutsche & Miwa Nakai & Toshi H. Arimura, 2021. "Individual Sustainable Investment in Japan," RIEEM Discussion Paper Series 2006, Research Institute for Environmental Economics and Management, Waseda University.
    8. Marija Kuzmanovic & Dragana Makajic-Nikolic & Nebojsa Nikolic, 2019. "Preference Based Portfolio for Private Investors: Discrete Choice Analysis Approach," Mathematics, MDPI, vol. 8(1), pages 1-20, December.
    9. Lucía de Carlos Fraile & Eva Crespo-Cebada & à ngel Sabino Mirón-Sanguino & Carlos Díaz-Caro, 2023. "Heterogeneity in investment behavior in sustainable products: the case of thematic funds," Economics and Business Letters, Oviedo University Press, vol. 12(2), pages 115-120.
    10. Bathke, Henrik & Hartmann, Evi, 2021. "Accepting a crowdsourced delivery - A choice-based conjoint analysis," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Adapting to the Future: Maritime and City Logistics in the Context of Digitalization and Sustainability. Proceedings of the Hamburg International Conf, volume 32, pages 65-95, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.

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