Investor Attitudes, Investment Screen Use, and Socially Responsible Investment Behavior

31 Pages Posted: 4 May 2013

See all articles by William N. Dilla

William N. Dilla

Iowa State University - Department of Accounting and Finance

Diane Joyce Janvrin

Iowa State University - Department of Accounting and Finance

Jon D. Perkins

Iowa State University

Robyn Raschke

University of Nevada, Las Vegas

Date Written: May 2, 2013

Abstract

There is an increasing demand for socially responsible investment (SRI), and SRI screens are an important source of information for investors. Yet, little is known about the relationship between investors’ attitudes, use of SRI screens, and actual SRI behavior. To examine this relationship, we gathered data on investors’ environmental attitudes, use of SRI screens, and SRI behavior. We find that four out of five components of the New Ecological Paradigm (NEP) scale, a measure of basic environmental attitudes, are associated with specific attitudes towards environmentally responsible investment. These specific attitudes in turn are positively associated with SRI screen use, and SRI screen use is positively associated with the percentage of investors’ portfolio held in SRIs. There is also a significant direct relationship between specific environmentally responsible investment attitudes and SRI holdings. Our results suggest that there are complex, multi-dimensional relationships between investor attitudes, SRI screen use, and investment behavior.

Keywords: environmental attitudes, sustainability reporting, socially responsible investment, new ecological paradigm scale

JEL Classification: M14, M40, M49

Suggested Citation

Dilla, William N. and Janvrin, Diane Joyce and Perkins, Jon D. and Raschke, Robyn, Investor Attitudes, Investment Screen Use, and Socially Responsible Investment Behavior (May 2, 2013). Available at SSRN: https://ssrn.com/abstract=2260051 or http://dx.doi.org/10.2139/ssrn.2260051

William N. Dilla (Contact Author)

Iowa State University - Department of Accounting and Finance ( email )

College of Business
Ames, IA 50011-2063
United States

Diane Joyce Janvrin

Iowa State University - Department of Accounting and Finance ( email )

College of Business
Ames, IA 50011-2063
United States

Jon D. Perkins

Iowa State University ( email )

613 Wallace Road
Ames, IA 50011-2063
United States

Robyn Raschke

University of Nevada, Las Vegas ( email )

4505 S. Maryland Parkway
Las Vegas, NV 89154
United States

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