Conform to the norm. Peer information and sustainable investments

  • We conduct a field experiment with clients of a German universal bank to explore the impact of peer information on sustainable retail investments. Our results show that infor-mation about peers’ inclination towards sustainable investing raises the amount allocated to stock funds labeled sustainable, when communicated during a buying decision. This effect is primarily driven by participants initially underestimating peers’ propensity to invest sustainably. Further, treated individuals indicate an increased interest in addi-tional information on sustainable investments, primarily on risk and return expectations. However, when analyzing account-level portfolio holding data over time, we detect no spillover effects of peer information on later sustainable investment decisions.

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Author:Max GrossmannGND, Andreas HackethalORCiDGND, Marten Laudi, Thomas PaulsGND
URN:urn:nbn:de:hebis:30:3-715541
URL:https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4673139
DOI:https://doi.org/10.2139/ssrn.4673139
Series (Serial Number):SAFE working paper (412)
Publisher:SAFE
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Year of Completion:2023
Year of first Publication:2023
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2024/01/15
Tag:Experimental Finance; Financial Advice; Household Finance; Sustainable Finance
Edition:This version: December 2023
Page Number:34
Note:
We gratefully acknowledge research support from the Leibniz Institute for Financial Research SAFE.
HeBIS-PPN:515424676
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF)
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
JEL-Classification:C Mathematical and Quantitative Methods / C9 Design of Experiments / C93 Field Experiments
D Microeconomics / D1 Household Behavior and Family Economics / D14 Personal Finance
G Financial Economics / G1 General Financial Markets / G11 Portfolio Choice; Investment Decisions
Sammlungen:Universitätspublikationen
Licence (German):License LogoDeutsches Urheberrecht