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Can information provision and preference elicitation promote ESG investments? Evidence from a large, incentivized online experiment

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  • Seifert, Marcel
  • Spitzer, Florian
  • Haeckl, Simone
  • Gaudeul, Alexia
  • Kirchler, Erich
  • Palan, Stefan
  • Gangl, Katharina

Abstract

Sustainable investing is characterized by considerations of both financial returns and ESG (Environmental, Social and Governance) impacts. We investigate how information about these two aspects, individually and in combination, affects investors’ decision to invest sustainably and their satisfaction with the information they received. We also test whether different ESG preference elicitation modes affect these investment decisions and investors’ satisfaction. We conduct an incentivized online experiment with two samples, experienced retail investors and a representative sample of the Austrian population in terms of age and gender (N = 2,254 in total). We find that both financial return information and ESG impact information stimulate ESG investment. Providing both types of information does not have a greater effect than presenting either one alone. Finally, we find no effect on satisfaction and the ESG preference elicitation mode significantly affects neither investment decisions nor satisfaction.

Suggested Citation

  • Seifert, Marcel & Spitzer, Florian & Haeckl, Simone & Gaudeul, Alexia & Kirchler, Erich & Palan, Stefan & Gangl, Katharina, 2024. "Can information provision and preference elicitation promote ESG investments? Evidence from a large, incentivized online experiment," Journal of Banking & Finance, Elsevier, vol. 161(C).
    • Handle: RePEc:eee:jbfina:v:161:y:2024:i:c:s0378426624000347
    DOI: 10.1016/j.jbankfin.2024.107114
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    More about this item

    Keywords

    ESG investments; Sustainable investments; Financial advice; Investor behavior; Financial return information; ESG impact information; Incentivized experiment; preregistered;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • 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
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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