Is Sustainable Investing Driven by Altruism: Evidence from Shocks to Philanthropy

54 Pages Posted: 15 May 2020

See all articles by Maria Boutchkova

Maria Boutchkova

University of Edinburgh

Angelica Gonzalez

University of Edinburgh

Renfang Zhang

University of Edinburgh

Date Written: April 13, 2020

Abstract

We test the conjecture that sustainable investing (SI) is driven by altruistic motives by examining the responses of charitable giving and SI flows to exogenous shocks to altruism. We find that while philanthropy responds strongly and significantly, SI flows do not. In addition, two further types of shocks to the reputation and tax shield benefits of philanthropy do not result in an increase in SI either. Our results contribute to understanding the channels behind SI and suggest that altruism is not as an important determinant as previously suggested.

Keywords: SI, philanthropy, ESG, charity

JEL Classification: G10, G12, G23, D64

Suggested Citation

Boutchkova, Maria and Gonzalez, Angelica and Zhang, Sylvia, Is Sustainable Investing Driven by Altruism: Evidence from Shocks to Philanthropy (April 13, 2020). Available at SSRN: https://ssrn.com/abstract=3575000 or http://dx.doi.org/10.2139/ssrn.3575000

Maria Boutchkova

University of Edinburgh ( email )

Business School
29 Buccleuch Place
Edinburgh, EH89JS
United Kingdom

Angelica Gonzalez

University of Edinburgh ( email )

Old College
South Bridge
Edinburgh, Scotland EH8 9JY
United Kingdom

Sylvia Zhang (Contact Author)

University of Edinburgh ( email )

Old College
South Bridge
Edinburgh, Scotland EH8 9JY
United Kingdom

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