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Profiling socially responsible investors: Australian evidence

Author

Listed:
  • Blanca Pérez-Gladish

    (Departamento de Economía Cuantitativa, University of Oviedo, Oviedo, Spain)

  • Karen Benson
  • Robert Faff

    (UQ Business School, University of Queensland, Brisbane, Australia)

Abstract

With the aid of an online survey, the purpose of this study is to examine financial preferences; social, environmental and ethical concerns; and socio-demographic characteristics of Australian socially responsible (SR) investors. The study advances knowledge of SR investors’ profiles and their motivations when making investment decisions. Based on a sample of 145 investors, our findings suggest that SR investors seek financial return as well as non-financial benefits. Social conscience and social health issues, as opposed to environmental issues, are relevant to investors. Interestingly, investor risk tolerance is a relatively unimportant factor in the choice of SR investments. Finally, in terms of socio-demographics, SR investors tend to be middle-aged, be middle-income professionals and have tertiary qualifications.

Suggested Citation

  • Blanca Pérez-Gladish & Karen Benson & Robert Faff, 2012. "Profiling socially responsible investors: Australian evidence," Australian Journal of Management, Australian School of Business, vol. 37(2), pages 189-209, August.
  • Handle: RePEc:sae:ausman:v:37:y:2012:i:2:p:189-209
    DOI: 10.1177/0312896211429158
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    References listed on IDEAS

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    7. Calvo, Clara & Ivorra, Carlos & Liern, Vicente, 2015. "Finding socially responsible portfolios close to conventional ones," International Review of Financial Analysis, Elsevier, vol. 40(C), pages 52-63.
    8. Karen Benson & Peter M Clarkson & Tom Smith & Irene Tutticci, 2015. "A review of accounting research in the Asia Pacific region," Australian Journal of Management, Australian School of Business, vol. 40(1), pages 36-88, February.
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    10. Blankenberg, Ann-Kathrin & Gottschalk, Jonas F. A., 2018. "Is socially responsible investing (SRI) in stocks a competitive capital investment? A comparative analysis based on the performance of sustainable stocks," University of Göttingen Working Papers in Economics 349, University of Goettingen, Department of Economics.
    11. Anett Wins & Bernhard Zwergel, 2016. "Comparing those who do, might and will not invest in sustainable funds: a survey among German retail fund investors," Business Research, Springer;German Academic Association for Business Research, vol. 9(1), pages 51-99, April.
    12. Gariet WS Chow & Robert B Durand & SzeKee Koh, 2014. "Are ethical investments good?," Australian Journal of Management, Australian School of Business, vol. 39(4), pages 645-665, November.
    13. Sayema Sultana & Norhayah Zulkifli & Dalilawati Zainal, 2018. "Environmental, Social and Governance (ESG) and Investment Decision in Bangladesh," Sustainability, MDPI, vol. 10(6), pages 1-19, June.
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    15. Luluk Widyawati, 2020. "A systematic literature review of socially responsible investment and environmental social governance metrics," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 619-637, February.
    16. Ali I. El Saleh & Doureige J. Jurdi, 2021. "Stock performance under alternative Shariah screening methods: Evidence from Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(3), pages 4339-4388, September.
    17. Orlando Gomes, 2020. "Optimal growth under socially responsible investment: a dynamic theoretical model of the trade-off between financial gains and emotional rewards," International Journal of Corporate Social Responsibility, Springer, vol. 5(1), pages 1-17, December.
    18. Jeremy Galbreath, 2013. "ESG in Focus: The Australian Evidence," Journal of Business Ethics, Springer, vol. 118(3), pages 529-541, December.
    19. 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).
    20. He Huang & Ye Ye, 2021. "Rethinking capital structure decision and corporate social responsibility in response to COVID‐19," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(3), pages 4757-4788, September.
    21. Jennifer K Gippel, 2013. "A revolution in finance?," Australian Journal of Management, Australian School of Business, vol. 38(1), pages 125-146, April.
    22. Gunnar Gutsche & Bernhard Zwergel, 2020. "Investment Barriers and Labeling Schemes for Socially Responsible Investments," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 72(2), pages 111-157, April.
    23. Ahmed OUTOUZZALT & Abdelkbir Elouidani & Rania Elouidani, 2022. "The effect of ESG criteria on investment decisions [L’effet des critères ESG sur les décisions d’investissement]," Post-Print hal-03739144, HAL.
    24. Gregor Dorfleitner & Mai Nguyen, 2016. "Which proportion of SR investments is enough? A survey-based approach," Business Research, Springer;German Academic Association for Business Research, vol. 9(1), pages 1-25, April.
    25. Gregor Dorfleitner & Mai Nguyen, 2017. "A new approach for optimizing responsible investments dependently on the initial wealth," Journal of Asset Management, Palgrave Macmillan, vol. 18(2), pages 81-98, March.

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