Altruism and Egoism in Investment Decisions
46 Pages Posted: 3 Jun 2017 Last revised: 5 Jun 2018
Date Written: June 4, 2018
We provide survey evidence that personal values have an impact on individual investment decisions, in particular the decision to invest socially responsible. Our findings show that there is a positive link between altruistic values and the relative importance of social responsibility. This effect is stronger when individuals believe that they can make a positive social or environmental impact with their investments, or when they feel morally obliged to invest responsibly. If altruistic individuals associate responsible investments with higher returns, it decreases their motivation to invest responsibly. Egoistic values are negatively associated with the decision to invest responsibly, unless individuals associate responsible investing with higher returns.
Keywords: Socially Responsible Investing, Survey, Investment Decisions, Psychological Values
JEL Classification: A13, D64, G11
Suggested Citation: Suggested Citation