Journal of Behavioral and Experimental Finance · 2023 · 26 citations · 50 references
BusinessFinanceBehavioral FinanceCorporate FinanceSustainable FinanceCorporate SustainabilityFinancial PerspectiveFinancial SustainabilityIntergenerational EquityInvestmentEsg StrategyExperimental Study DesignFinancial Perspective DesignScope
In this study, we address the ongoing debate about the relative importance of the three dimensions of the ESG framework and whether they are sufficient to capture the full scope of sustainability. We propose a new dimension, the Future Generations pillar (Fpillar), which aims to account for intergenerational equity and sustainability. Our online experiment explores how retail investors make investment decisions when presented with different combinations of financial and ESG information, including the F-pillar. Our findings suggest that retail investors try to balance their financial objectives with sustainability considerations. Moreover, the E-pillar appears to be most relevant when investors adopt a sustainability perspective, while the S-pillar is most relevant when investors consider the financial perspective. Interestingly, our results show that an explicit F-pillar is somewhat redundant, as individuals believe that the three existing ESG pillars already indirectly address the sustainability towards the future generations.
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Strategic Information Transmission
Vincent P. Crawford, Joel Sobel · Econometrica · 1982 · 4.4K citations