Positivity and Nature: How Images Increase Investment

44 Pages Posted: 3 Nov 2021 Last revised: 1 Dec 2021

See all articles by Koen van Boxel

Koen van Boxel

Institute for Risk and Insurance, Leibniz University Hannover

Philipp Decke

Institute for Risk and Insurance, Leibniz University Hannover

Sven Nolte

Radboud University

Judith C. Schneider

Leibniz Universit├Ąt Hannover - Faculty of Economics and Management

Date Written: November 2, 2021

Abstract

We use a novel online experiment to investigate the impact of emotional images on investment behavior. Participants are exposed to a nature-related and a non-nature set of images with varying degrees of valence during several investment decisions. We demonstrate that positive images significantly increase and negative images significantly decrease investment, despite the fact that the images do not provide additional information relevant to the investment tasks and should be disregarded by rational investors. We further show that exposure to nature-related images results in significantly higher investment compared to non-nature images. Our findings provide important insights for regulators, investors, and the investment industry and establish the basis for further research.

Keywords: Sustainability Images, Risk Taking, Emotional Arousal, Valence, Experimental Finance

JEL Classification: G11, G41

Suggested Citation

van Boxel, Koen and Decke, Philipp and Nolte, Sven and Schneider, Judith C., Positivity and Nature: How Images Increase Investment (November 2, 2021). Available at SSRN: https://ssrn.com/abstract=3955070 or http://dx.doi.org/10.2139/ssrn.3955070

Koen Van Boxel

Institute for Risk and Insurance, Leibniz University Hannover ( email )

Hannover, Lower Saxony 30159
Germany

Philipp Decke (Contact Author)

Institute for Risk and Insurance, Leibniz University Hannover ( email )

Otto-Brenner-Str. 7
Hannover, 30159
Germany

Sven Nolte

Radboud University ( email )

Nijmegen
Netherlands

Judith C. Schneider

Leibniz Universit├Ąt Hannover - Faculty of Economics and Management ( email )

United States

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