Abstract

We perform a choice experiment modeled on equity fund savings, to estimate preferences for sustainable and responsible investments and conventional fund attributes among private investors in Sweden (n = 559). We find that sustainability strategies, as well as an environmental focus, were more important than other fund characteristics. Moreover, negative affect in relation to SRI contributed as an observable factor to explain variance heterogeneity while experience in fund savings, positive product involvement as well as positive affect were not significant. Our main finding is, however, that latent behavioral characteristics of the investors are strong predictors of latent class membership thereby contributing to distinguish nontrivial investor sub-groups. We find no support for the contribution of sociodemographic characteristics. These results can serve to identify market segments so that equity fund offerings, including those related to SRI, can be mobilized, optimized and tailored to meet the demand for SRI among private investors. (C) 2020 The Author(s). Published by Elsevier B.V.

Keywords

Latent class modeling; Impact investment; Variance heterogeneity; Segmentation

Published in

Journal of Behavioral and Experimental Finance
2020, Volume: 28, article number: 100406
Publisher: ELSEVIER

SLU Authors

• Lagerkvist, Carl-Johan

  • Department of Economics, Swedish University of Agricultural Sciences
    

• Edenbrandt, Anna Kristina

  • Department of Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Economics


Publication identifier

DOI: https://doi.org/10.1016/j.jbef.2020.100406

Permanent link to this page (URI)

https://res.slu.se/id/publ/117762