The Effect of Near- versus Distant-Future Mindsets on Socially Responsible Investors’ Mutual Fund Preferences
Journal of Financial Services Marketing, April 2012, Volume 17, Issue 1, pp 67-79. DOI/10.1057/fsm.2012.5
27 Pages Posted: 21 Jun 2018 Last revised: 1 Oct 2018
Date Written: April 17, 2012
Abstract
Socially responsible investing (SRI) has seen tremendous growth in recent years. For SRI investors, choosing among potential SRI investments often requires making trade-offs between social responsibility and financial aspects of the investment. In this study, we examine contexts where investors are more versus less willing to make such trade-offs, specifically in the context of SRI-guided mutual funds among Muslim investors. We expect that priming a near-future mindset will make respondents less likely to trade-off social responsibility for financial considerations, whereas priming a distant-future mindset will make respondents more likely to make such trade-offs. Using a discrete choice experimental design among Saudi Arabian adults, we find support for our hypotheses. Managerial implications and directions for future research are discussed.
Keywords: Socially Responsible Investing, Temporal Construal, Shari’a-Compliant Mutual Funds, Muslim Consumer Financial Decision Making
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