Auger, P, Devinney, TM, Dowling, G et al. (1 more author) (2016) Inertia and Discounting in the Selection of Socially Responsible Investments: An Experimental Investigation. Annals in Social Responsibility, 2 (1). ISSN 2056-3515
Abstract
Purpose: Socially responsible investment funds (SRIs) have grown dramatically as an investment alternative in most of the developed world. Design/methodology/approach: This study uses a structured experimental approach to determine if the decision-making process of investors to invest in SRIs is consistent with the process used for conventional investments. Our theoretical framework draws on two widely studied concepts in the decision-making and investment literature, namely, inertia and discounting. Findings: We find that inertia plays a significant role in the selection of SRI funds and that investors systemically discount the value of SRIs. Research limitations/implications: Our results suggest that SRIs need to be designed to cater to the risk/return profiles of investors and that these investors need to be better informed about the performance of SRIs versus conventional investments to reduce their systematic discounting. Originality/value: Unique experimental approach applied to investment alternatives in a manner that captures individual level variation.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © Emerald Group Publishing 2016. This is an author produced version of a paper published in Annals in Social Responsibility. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | choice experiments, inertia, retirement plans, socially responsible investment |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 18 Jul 2016 15:06 |
Last Modified: | 11 Oct 2017 15:39 |
Published Version: | http://www.emeraldinsight.com/doi/abs/10.1108/ASR-... |
Status: | Published |
Publisher: | Emerald |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:102507 |