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Investor preferences, financial literacy and intermediary choice towards sustainability

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  • Cucinelli, Doriana
  • Soana, Maria Gaia

Abstract

Based on a large and representative sample of Italian adults, our study aims to detect the determinants of retail investor preferences for socially responsible (SR) financial intermediaries, i.e., intermediaries adopting environmental, social and governance strategies and offering both traditional and SR financial products. We demonstrate that SR financial intermediaries are chosen by individuals characterized by high self-reported orientation towards SR investments and high financial literacy. Disaggregating financial literacy into its three determinants, we show that the higher the financial knowledge and the more correct financial behavior of retail investors related to savings and financial control, the higher their preference for SR financial intermediaries. On the other hand, individual financial attitude towards savings and spending displays a negative relationship with this preference. Moreover, retail investors with more specific knowledge about portfolio diversification choose more SR financial intermediaries than other people.

Suggested Citation

  • Cucinelli, Doriana & Soana, Maria Gaia, 2023. "Investor preferences, financial literacy and intermediary choice towards sustainability," Research in International Business and Finance, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:riibaf:v:66:y:2023:i:c:s0275531923001538
    DOI: 10.1016/j.ribaf.2023.102027
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    4. David Aristei & Manuela Gallo & Pierluigi Murro, 2025. "Financial Knowledge and Financial Fragility: Longitudinal Evidence from Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(2), pages 667-702, July.
    5. Aristei, David & Gallo, Manuela & Vannoni, Valeria, 2024. "Preferences for ethical intermediaries and sustainable investment decisions in micro-firms: The role of financial literacy and digital financial capability," Research in International Business and Finance, Elsevier, vol. 71(C).
    6. Carolina Ety Widjayanti & Wiwiek Rabiatul Adawiyah & Sudarto, 2025. "Financial literacy innovation is mediated by financial attitudes and lifestyles on financial behavior in MSME players," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-15, December.
    7. Frankovic, Ivan & Kolb, Benedikt, 2024. "The role of emission disclosure for the low-carbon transition," European Economic Review, Elsevier, vol. 167(C).
    8. Yaoyi Zhang, 2024. "RETRACTED ARTICLE: Promoting sustainable growth through eco-innovation, energy transition, and human capital: a comparative analysis of G-7 economies," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-29, April.

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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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