Intergenerational Transmission of Pro-Social Values: Socially Responsible Investment Among Parents and Adult Children
30 Pages Posted: 7 Oct 2015
Date Written: October 5, 2015
Novel evidence on the transmission of pro-social values from parents to individuals is provided by the finding of a positive correlation between parental and individuals subsequent investments in socially responsible mutual funds. Although captured parental-individual correlations reflect contemporary relationships, they reveal potentially important insight into the origin of heterogeneity in individuals’ pro-social behavior. Consistent with research on socialization, the results imply an influence from both parents, stronger for mothers, and reinforced for parents agreeing in pro-social values, i.e. for individuals’ with both parents investing in socially responsible mutual funds. Parental resources during individuals’ adolescent (financial and parental life experience) are further found to significantly explain individuals’ adult pro-social investment behavior. The results are robust towards conditioning upon a number of alternative explanations.
Keywords: Social preferences, individual investor behavior, socialization, sustainable investing, socially responsible mutual funds
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