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Does ESG information impact individual investors’ portfolio choices?

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  • Janz, Catharina
  • Rilke, Rainer Michael
  • Burcin Yurtoglu, B.

Abstract

We use an online asset market experiment to study whether ESG information affects the portfolio choices of retail investors. We find a significantly higher portfolio allocation to stocks with ESG information in the order of 14 percentage points compared to a control group where no ESG information is released. ESG information impacts retail investors regardless of its association with one of its components (Environment, Social or Governance) and degree of detail. In contrast to survey-based evidence on the importance of socio-demographic characteristics and personal traits, our results provide very limited evidence that such characteristics meaningfully correlate with portfolio reallocations in response to ESG information.

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  • Janz, Catharina & Rilke, Rainer Michael & Burcin Yurtoglu, B., 2025. "Does ESG information impact individual investors’ portfolio choices?," Journal of Economic Behavior & Organization, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:jeborg:v:234:y:2025:i:c:s016726812500126x
    DOI: 10.1016/j.jebo.2025.107007
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    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • K29 - Law and Economics - - Regulation and Business Law - - - Other

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