Essays on sustainable finance – the role of preferences, incentives, and information for sustainable investments
Loading...
Date issued
Authors
Editors
Journal Title
Journal ISSN
Volume Title
Publisher
Reuse License
Abstract
This dissertation consists of four essays that address different aspects of the overall question of what drives sustainable investment decisions. They serve the purpose of analyzing the role of (ambiguous) information, examining the consequences of (motivated) beliefs, and investigating the effects of preferences. To answer the overarching question, three incentivized online experiments are conducted. The first essay deals with the role of preferences, incentives, and information for sustainable investment decisions and shows that motivated beliefs shape the acquisition of information, which is subsequently used for investment decisions. The second essay relates to the objective of this thesis by showing what determines investors’ perceptions of what an appropriate definition of sustainable investments should entail. The paper provides causal evidence that investors’ perspectives on this issue are influenced by motivated beliefs. These beliefs are shaped by investors’ return expectations and their knowledge about the sustainability characteristics of their previously selected investments in the experiment. The third essay identifies the defining characteristics of the next generation of retail investors. Moreover, it examines the predictive power of behavioral, demographic, and portfolio characteristics in identifying sustainable investor types. Finally, the last essay analyzes the characteristics of wealthy private individuals with a propensity to invest sustainably. The results of this dissertation have implications for policymakers, researchers, and financial institutions.