38 Pages Posted: 31 May 2006
Date Written: December 2005
This paper develops a general model of investor choice to analyse Socially Responsible Investment (SRI). Drawing on data from a large survey of investors across five countries we show that SRI may be driven more by investor attitudes to the social aims of firms rather than by financial returns. We also show that investors who care about social issues as consumers appear to carry this behaviour over into their portfolio strategy. We find little evidence that demographic factors affect SRI but some indirect evidence that market context in terms of institutional ownership and the regulatory environment may play a role.
Keywords: Socially Responsible Investment, Demographics, Investor Attitudes, Consumer Behaviour, Probit Models
JEL Classification: G11, G14, G15, M14
Suggested Citation: Suggested Citation
Williams, Geoffrey, Some Determinants of the Socially Responsible Investment Decision: A Cross Country Study (December 2005). Available at SSRN: https://ssrn.com/abstract=905189 or http://dx.doi.org/10.2139/ssrn.905189
By Meir Statman