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Business Law, Public Responsibility, and Ethics Commons

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Socially responsible investing

Behavioral Economics

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Full-Text Articles in Business Law, Public Responsibility, and Ethics

Value(S) Based Diversification: Environmental, Social, And Governance Investing Sub-Issue Preferences Mapping Through Forced Trade-Offs, Sophia Justine Logan Jan 2019

Value(S) Based Diversification: Environmental, Social, And Governance Investing Sub-Issue Preferences Mapping Through Forced Trade-Offs, Sophia Justine Logan

Senior Projects Spring 2019

Using empirical evidence on consumer preferences for environmental, social, and governance (ESG) investing issues, this author builds upon the economic literature that agents have pro-social inclinations. Evidence from the study shows that ESG preferences are nuanced and heterogeneous, unlike the assumptions in academia and the financial services world today of homogenous preferences across ESG issue categories. This author employs the relatively new methodology of MaxDiff to analyze preferences by forcing trade-offs. A survey with 1,000 respondents was administered to create a rank ordering of ESG issue preferences. The project finds that the highest ranked issues fall within the “social” category …