Financial or environmental-impact information promote ESG investments: Evidence from a large incentivized online-experiment

Effective stimulation of investments in Environmental, Social, and Governance (ESG) requires reliable knowledge of motives that drive investors’ decisions. We investigate how information on financial return and environmental impact as well as the combination of both affect the decision to invest sustainably. Moreover, we test whether offering a general or granular choice on sustainability preferences affects investment decisions. An incentivized online experiment with experienced retail investors and a representative sample of the Austrian population (N = 2254) shows that information on financial impact as well as on environmental impact stimulates sustainable investments. However, the combination of both types of information yields no additional positive effect. Information has no strong effect on investor satisfaction. Also, the difference in choice options on sustainability preferences has no large impact on investment decisions or satisfaction. An explorative analysis suggests that women and investors holding high biospheric values as well as investors with high financial literacy, and trust in ESG products are more likely to invest sustainably. Additional results on the revision and stability of investment decisions are discussed

Financial Return and Environmental Impact Information Promotes ESG Investments: Evidence from a Large, Incentivized Online Experiment

Sustainable investments are characterized by considerations about financial returns as well as environmental impact. We investigate how information on both aspects alone and in combination impacts the decision to invest sustainably. Moreover, we test whether letting investors express their sustainability preferences in a more detailed way affects their investment decisions. We run an incentivized online experiment with experienced retail investors and a representative sample of the Austrian population (N = 2,254 in total). We find that information on financial returns and information on environmental impact both stimulate sustainable investments. However, presenting the two types of information in combination yields no greater effect than presenting one of them alone. Furthermore, we find no evidence that investment decisions are affected by whether sustainability preferences are elicited generally or in a more detailed format. Results also show that sustainable investments are positively correlated with investors’ biospheric values and their financial literacy

Closing the Gender STEM Gap - A Large-Scale Randomized-Controlled Trial in Elementary Schools

We examine individual-level determinants of interest in STEM and analyze whether a digital web application for elementary-school children can increase children’s interest in STEM with a specific focus on narrowing the gender gap. Coupling a randomized-controlled trial with experimental lab and survey data, we analyze the effect of the digital intervention and shed light on the mechanisms. We confirm the hypothesis that girls demonstrate a lower overall interest in STEM than boys. Moreover, girls are less competitive and exhibit less pronounced math confidence than boys at the baseline. Our treatment increases girls’ interest in STEM and decreases the gender gap via an increase in STEM confidence. Our findings suggest that an easy-to-implement digital intervention has the potential to foster gender equality for young children and can potentially contribute to a reduction of gender inequalities in the labor market such as occupational sorting and the gender wage gap later in life

Can information provision and preference elicitation promote ESG investments? Evidence from a large, incentivized online experiment

Sustainable investing is characterized by considerations of both financial returns and ESG (Environmental, Social and Governance) impacts. We investigate how information about these two aspects, individually and in combination, affects investors’ decision to invest sustainably and their satisfaction with the information they received. We also test whether different ESG preference elicitation modes affect these investment decisions and investors’ satisfaction. We conduct an incentivized online experiment with two samples, experienced retail investors and a representative sample of the Austrian population in terms of age and gender (N = 2,254 in total). We find that both financial return information and ESG impact information stimulate ESG investment. Providing both types of information does not have a greater effect than presenting either one alone. Finally, we find no effect on satisfaction and the ESG preference elicitation mode significantly affects neither investment decisions nor satisfaction