IDEAS home Printed from https://ideas.repec.org/p/hhb/sicgwp/2010_010.html
   My bibliography  Save this paper

The information search process of socially responsible investors

Author

Listed:
  • Nilsson, Jonas

    () (Umeå School of Business at Umeå University)

  • Nordvall, Anna-Carin

    () (Umeaå School of Business at Umeå University)

  • Isberg, Sofia

    () (Umeå School of Business at Umeå University)

Abstract

Largely fuelled by an increasing social and ethical concern among private investors, socially responsible investment (SRI) has, in many ways, gone from having a marginal role to becoming a ‘mainstream’ financial service in recent years. SRI is an investment process that, in addition to the ‘ traditional ’ fi nancial objective of investment, also uses social, ethical or environmental (SEE) criteria when making investment decisions. However, despite the growth of the market for SRI profi led mutual funds, very little research has been carried out with the objective of understanding the decision-making process of private SR-investors. In order to address this gap in the literature, this article addresses one stage in the SR-investor decision-making process: consumer prepurchase information search. Using a sample of 369 SR-investors, the results of the study indicate that SR-investors search more for SEE information, such as the criteria used for exclusion of stocks than for ‘regular’ financial information such as past financial return and level of risk. Moreover, the study also indicates that involvement and perceived knowledge with regard to both financial and SEE issues impact the nature of the information search process of private SR mutual fund investors.

Suggested Citation

  • Nilsson, Jonas & Nordvall, Anna-Carin & Isberg, Sofia, 2010. "The information search process of socially responsible investors," Sustainable Investment and Corporate Governance Working Papers 2010/10, Sustainable Investment Research Platform.
  • Handle: RePEc:hhb:sicgwp:2010_010
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Sinkin, Charlene & Wright, Charlotte J. & Burnett, Royce D., 2008. "Eco-efficiency and firm value," Journal of Accounting and Public Policy, Elsevier, vol. 27(2), pages 167-176.
    2. Olsson, Rickard, 2007. "Portfolio performance and environmental risk," Sustainable Investment and Corporate Governance Working Papers 2007/4, Sustainable Investment Research Platform.
    3. Shameek Konar & Mark A. Cohen, 2001. "Does The Market Value Environmental Performance?," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 281-289, May.
    4. Patten, Dennis M., 2002. "The relation between environmental performance and environmental disclosure: a research note," Accounting, Organizations and Society, Elsevier, vol. 27(8), pages 763-773, November.
    5. Khanna, Madhu & Quimio, Wilma Rose H. & Bojilova, Dora, 1998. "Toxics Release Information: A Policy Tool for Environmental Protection," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 243-266, November.
    6. Mitchell A. Petersen, 2009. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches," Review of Financial Studies, Society for Financial Studies, vol. 22(1), pages 435-480, January.
    7. Natalia Semenova & Lars G. Hassel, 2008. "Financial outcomes of environmental risk and opportunity for US companies," Sustainable Development, John Wiley & Sons, Ltd., vol. 16(3), pages 195-212.
    8. repec:bla:joares:v:32:y:1994:i::p:177-209 is not listed on IDEAS
    9. Cho, Charles H. & Patten, Dennis M., 2007. "The role of environmental disclosures as tools of legitimacy: A research note," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 639-647.
    10. Tracy Artiach & Darren Lee & David Nelson & Julie Walker, 2010. "The determinants of corporate sustainability performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(1), pages 31-51.
    11. Ilinitch, Anne Y. & Soderstrom, Naomi S. & E. Thomas, Tom, 1998. "Measuring corporate environmental performance," Journal of Accounting and Public Policy, Elsevier, vol. 17(4-5), pages 383-408.
    12. Kempf, Alexander & Osthoff, Peer, 2007. "The effect of socially responsible investing on portfolio performance," CFR Working Papers 06-10, University of Cologne, Centre for Financial Research (CFR).
    13. Bert Scholtens & Yangqin Zhou, 2008. "Stakeholder relations and financial performance," Sustainable Development, John Wiley & Sons, Ltd., vol. 16(3), pages 213-232.
    14. Aaron K. Chatterji & David I. Levine & Michael W. Toffel, 2009. "How Well Do Social Ratings Actually Measure Corporate Social Responsibility?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 125-169, March.
    15. Andrew King & Michael Lenox, 2002. "Exploring the Locus of Profitable Pollution Reduction," Management Science, INFORMS, pages 289-299.
    16. Alexander Bassen & Ana Maria Kovács, 2008. "Environmental, Social and Governance Key Performance - Indicators from a Capital Market Perspective," Zeitschrift für Wirtschafts- und Unternehmensethik - Journal for Business, Economics & Ethics, Rainer Hampp Verlag, vol. 9(2), pages 182-192.
    17. Alexander Kempf & Peer Osthoff, 2007. "The Effect of Socially Responsible Investing on Portfolio Performance," European Financial Management, European Financial Management Association, vol. 13(5), pages 908-922.
    18. Andreas Ziegler & Michael Schröder & Klaus Rennings, 2007. "The effect of environmental and social performance on the stock performance of european corporations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 661-680.
    19. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2008. "Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 303-327.
    20. Andreas Ziegler & Michael Schröder & Klaus Rennings, 2008. "The Effect of Environmental and Social Performance on the Stock Performance of European Corporations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 609-609.
    21. Elsayed, Khaled & Paton, David, 2005. "The impact of environmental performance on firm performance: static and dynamic panel data evidence," Structural Change and Economic Dynamics, Elsevier, vol. 16(3), pages 395-412, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Céline Louche & Daniel Arenas & Katinka C. Van Cranenburgh, 2012. "From Preaching to Investing: Attitudes of Religious Organisations Towards Responsible Investment," Post-Print hal-01098144, HAL.
    2. Céline Louche & Daniel Arenas & Katinka Cranenburgh, 2012. "From Preaching to Investing: Attitudes of Religious Organisations Towards Responsible Investment," Journal of Business Ethics, Springer, pages 301-320.

    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:hhb:sicgwp:2010_010. 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: (Pontus Cerin). General contact details of provider: http://edirc.repec.org/data/iikthse.html .

    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.

    We have no references for this item. You can help adding them by using 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.