Altruism and egoism in investment decisions1. Issue 1 (1st February 2019)

• Record Type: Journal Article
• Authors: Brodback, Daniel; Guenster, Nadja; Mezger, David
• Other Names: Kumar Alok guestEditor.
• Is Part Of: Review of financial economics. Volume 37:Issue 1(2019)
• Page Start: 118
• Page End: 148
• Publication Date: 2019-02-01
• Subjects: investment decisions -- psychological values -- socially responsible investing; Business -- Periodicals; Economics -- Periodicals; Business; Economics; Electronic journals; Periodicals; 332.05
• DOI: 10.1002/rfe.1053
• Languages: English
• ISSNs: 1058-3300

Abstract

Abstract: We provide survey evidence that personal values have an impact on individual investment decisions, in particular preferences for socially responsible investing. Our findings show that there is a positive link between altruistic values and the relative importance of social responsibility. This effect is stronger when individuals believe that they can make a positive social or environmental impact with their investments, or when they feel morally obliged to invest responsibly. If altruistic individuals associate responsible investments with higher returns, it decreases their motivation to invest responsibly. Egoistic values are negatively associated with the decision to invest responsibly, unless individuals associate responsible investing with higher returns.