Portfolio instability and socially responsible investment: Experiments with financial professionals and students

被引:1
作者
Tatarnikova, Olga [1 ]
Duchene, Sebastien [2 ]
Sentis, Patrick [3 ]
Willinger, Marc [4 ]
机构
[1] ESSCA Sch Management, Aix En Provence, France
[2] Montpellier Business Sch, Montpellier, France
[3] Univ Montpellier, Montpellier Business Sch, MRM, Montpellier, France
[4] Univ Montpellier, Inst Agro, CEE M, CNRS,INRAE, Montpellier, France
关键词
Behavioral finance; Experimental economics; Financial asset markets; Portfolio instability; Socially responsible investment; FIELD EXPERIMENT; IMPURE ALTRUISM; PERFORMANCE; PAY; PREFERENCES; INFORMATION; DONATIONS; RANKING; FUNDS;
D O I
10.1016/j.jedc.2023.104702
中图分类号
F [经济];
学科分类号
02 ;
摘要
Efficiency of SRI portfolios is commonly assessed based on an inconclusive risk-return ra-tio. We propose to approach the efficiency of portfolios with the notion of instability. Un-stable portfolios are characterized by higher transaction costs and human resources costs that justify search for more stable portfolios. We examine the instability of SRI portfolios from the perspective of behavioral finance. Based on data from incentivized experiments with 153 financial professionals and 233 students, we compare a baseline treatment to a ranking treatment in which participants received feedback regarding their average invest-ment in SRI assets. We found that SRI portfolios had significantly lower instability: port-folios with a majority of SRI shares exhibited less instability in both treatments compared to conventional portfolios. Moreover, in the ranking treatment subjects invested more in SRI assets than in the baseline. In addition, the experiment revealed the convergence of professionals' and students' behavioral patterns. (c) 2023 Elsevier B.V. All rights reserved.
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页数:42
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