The link between corporate sustainability and willingness to invest: new evidence from the field of ethical investments

  • In recent decades, academia has addressed a wide range of research topics in the field of ethical decision-making. Besides a great amount of research on ethical consumption, also the domain of ethical investments increasingly moves in the focus of scholars. While in this area most research focuses on whether socially or environmentally sustainable businesses outperform traditional investments financially or investigates the character traits as well as other socio-demographic factors of ethical investors, the impact of sustainable corporate conduct on the investment intentions of private investors still requires further research. Hence, we conducted two studies to shed more light on this highly relevant topic. After discussing the current state of research, in our first empirical study, we explore whether besides the traditional triad of risk, return, and liquidity, also sustainability exerts a significant impact on the willingness to invest. As hypothesized, we find that sustainability shows a clear and decisive impact in addition to the traditional factors. In a consecutive study, we investigate deeper into the sustainability-willingness to invest link. Here, our results show that improved sustainability might not pay off in terms of investment attractiveness, however and conversely, it certainly harms to conduct business in a non-sustainable manner, which cannot even be compensated by an increased return.

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Author:Volker Lingnau, Florian FuchsORCiD, Florian Beham
Parent Title (English):Journal of Management Control
Publisher:Springer Nature - Springer
Document Type:Article
Language of publication:English
Date of Publication (online):2024/03/28
Year of first Publication:2022
Publishing Institution:Rheinland-Pfälzische Technische Universität Kaiserslautern-Landau
Date of the Publication (Server):2024/03/28
Page Number:35
First Page:335
Last Page:369
Faculties / Organisational entities:Kaiserslautern - Fachbereich Wirtschaftswissenschaften
DDC-Cassification:3 Sozialwissenschaften / 330 Wirtschaft
Licence (German):Zweitveröffentlichung