IDEAS home Printed from https://ideas.repec.org/a/bap/journl/160404.html
   My bibliography  Save this article

Analysis of Private Socially Responsible Investment: The Impact of Personal Concern with Corporate Social Responsibility

Author

Listed:
  • Francesco Gangi

    () (Department of Economics, Second University of Naples, Corso Gran Priorato di Malta, Capua (CE), 81043, ITALY)

  • Ida Camminatiello

    () (Department of Economics, Second University of Naples, Corso Gran Priorato di Malta, Capua (CE), 81043, ITALY)

  • Nicola Varrone

    () (Department of Economics, Second University of Naples, Corso Gran Priorato di Malta, Capua (CE), 81043, ITALY)

Abstract

Are many years that academics and professionals dealing with the so-called socially responsible investment (SRI). Yet, still it persists today the need of a better knowledge of personal reasons underlying the investment decision. This is evidenced by inconclusive and contradictory findings of decades of empirical research. So, this paper aims at contributing to fill this gap, by deepening whether the level of personal concerns with corporate social responsibility (CSR) and the personal preferences towards the screening criteria adopted by socially responsible funds (SRFs) affect the decision to choose a socially responsible investment. In order to connect the investment choice with the personal concerns for CSR, this study refers to an experimental survey that proposes different investment scenarios and several five point Likert statements referred to corporate social responsibility. Findings confirm that the traditional risk/return trade-off is not sufficient to explain the decision to invest socially responsibly, going beyond a purely financial return. In fact, the level of personal concerns with CSR and the preference for investment screens related to the safeguard of natural environment and human rights incentive individuals to invest in SRFs.

Suggested Citation

  • Francesco Gangi & Ida Camminatiello & Nicola Varrone, 2016. "Analysis of Private Socially Responsible Investment: The Impact of Personal Concern with Corporate Social Responsibility," Review of Economics & Finance, Better Advances Press, Canada, vol. 6, pages 47-62, November.
  • Handle: RePEc:bap:journl:160404
    as

    Download full text from publisher

    File URL: http://www.bapress.ca/ref/ref-article/1923-7529-2016-04-47-16.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Webley, Paul & Lewis, Alan & Mackenzie, Craig, 2001. "Commitment among ethical investors: An experimental approach," Journal of Economic Psychology, Elsevier, vol. 22(1), pages 27-42, February.
    2. van der Laan Smith, Joyce & Adhikari, Ajay & Tondkar, Rasoul H. & Andrews, Robert L., 2010. "The impact of corporate social disclosure on investment behavior: A cross-national study," Journal of Accounting and Public Policy, Elsevier, vol. 29(2), pages 177-192, March.
    3. Bauer, Rob & Otten, Roger & Rad, Alireza Tourani, 2006. "Ethical investing in Australia: Is there a financial penalty?," Pacific-Basin Finance Journal, Elsevier, vol. 14(1), pages 33-48, January.
    4. Auger, Pat & Devinney, Timothy M. & Louviere, Jordan J. & Burke, Paul F., 2010. "The importance of social product attributes in consumer purchasing decisions: A multi-country comparative study," International Business Review, Elsevier, vol. 19(2), pages 140-159, April.
    5. Jonas Nilsson, 2008. "Investment with a Conscience: Examining the Impact of Pro-Social Attitudes and Perceived Financial Performance on Socially Responsible Investment Behavior," Journal of Business Ethics, Springer, vol. 83(2), pages 307-325, December.
    6. Renneboog, Luc & Ter Horst, Jenke & Zhang, Chendi, 2008. "The price of ethics and stakeholder governance: The performance of socially responsible mutual funds," Journal of Corporate Finance, Elsevier, vol. 14(3), pages 302-322, June.
    7. Joakim Sandberg & Carmen Juravle & Ted Hedesström & Ian Hamilton, 2009. "The Heterogeneity of Socially Responsible Investment," Journal of Business Ethics, Springer, vol. 87(4), pages 519-533, July.
    8. William Pasewark & Mark Riley, 2010. "It’s a Matter of Principle: The Role of Personal Values in Investment Decisions," Journal of Business Ethics, Springer, vol. 93(2), pages 237-253, May.
    9. Katherina Glac, 2009. "Understanding Socially Responsible Investing: The Effect of Decision Frames and Trade-off Options," Journal of Business Ethics, Springer, vol. 87(1), pages 41-55, April.
    10. Jatinder Singh & Oriol Iglesias & Joan Batista-Foguet, 2012. "Does Having an Ethical Brand Matter? The Influence of Consumer Perceived Ethicality on Trust, Affect and Loyalty," Journal of Business Ethics, Springer, vol. 111(4), pages 541-549, December.
    11. Francesco Gangi & Carmen Trotta, 2015. "The ethical finance as a response to the financial crises: an empirical survey of European SRFs performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(2), pages 371-394, May.
    12. Renneboog, Luc & Ter Horst, Jenke & Zhang, Chendi, 2008. "Socially responsible investments: Institutional aspects, performance, and investor behavior," Journal of Banking & Finance, Elsevier, vol. 32(9), pages 1723-1742, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Corporate social responsibility; Investment behavior; Socially responsible investment; Decision making; Risk/Return trade-off;

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bap:journl:160404. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlson). General contact details of provider: http://www.bapress.ca .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.