TY - JOUR
T1 - In search of socially responsible investors: A latent profile analysis
AU - Robba, Matteo Paolo
AU - Sorgente, Angela
AU - Iannello, Paola
PY - 2024
Y1 - 2024
N2 - Introduction: Socially responsible investments (SRI) increased their popularity among investors over the last two decades. However, there is still a lack of knowledge on socially responsible investors’ characteristics and motivations behind the decision to invest in SRI. The present paper aims at filling this gap by profiling current and potential sustainable investors.
Method: Cross-sectional data from a representative sample of Italian consumers (N = 1,002) was used to perform a Latent Profile Analysis (LPA), a clustering technique, and identify various sub-groups within the respondents. Subsequently, chi-square test and one-way ANOVA were performed to determine which profile(s) was mostly associated with current and potential socially responsible investing.
Results and Discussion: Five profiles of consumers were identified through the LPA, each one differently associated with the likelihood of investing in socially responsible products. The profile that best describes sustainable investors is characterized by high levels of knowledge toward SRI, risk appetite, positive attitudes on SRI, personal norms, perceived behavioral control, environmental concerns, and connectedness to nature. These findings suggest that non-financial aspects, namely psychological characteristics such as attitudes and personal values, play a key role in the decision to invest responsibly as well.
AB - Introduction: Socially responsible investments (SRI) increased their popularity among investors over the last two decades. However, there is still a lack of knowledge on socially responsible investors’ characteristics and motivations behind the decision to invest in SRI. The present paper aims at filling this gap by profiling current and potential sustainable investors.
Method: Cross-sectional data from a representative sample of Italian consumers (N = 1,002) was used to perform a Latent Profile Analysis (LPA), a clustering technique, and identify various sub-groups within the respondents. Subsequently, chi-square test and one-way ANOVA were performed to determine which profile(s) was mostly associated with current and potential socially responsible investing.
Results and Discussion: Five profiles of consumers were identified through the LPA, each one differently associated with the likelihood of investing in socially responsible products. The profile that best describes sustainable investors is characterized by high levels of knowledge toward SRI, risk appetite, positive attitudes on SRI, personal norms, perceived behavioral control, environmental concerns, and connectedness to nature. These findings suggest that non-financial aspects, namely psychological characteristics such as attitudes and personal values, play a key role in the decision to invest responsibly as well.
KW - Behavioral finance
KW - ESG
KW - Individual differences
KW - Investment decision making
KW - Latent profile analysis
KW - Socially responsible investments
KW - Theory of Planned Behavior
KW - Values
KW - Behavioral finance
KW - ESG
KW - Individual differences
KW - Investment decision making
KW - Latent profile analysis
KW - Socially responsible investments
KW - Theory of Planned Behavior
KW - Values
UR - http://hdl.handle.net/10807/269234
U2 - 10.3389/frbhe.2024.1369261
DO - 10.3389/frbhe.2024.1369261
M3 - Article
SN - 2813-5296
VL - 3
SP - 1
EP - 14
JO - FRONTIERS IN BEHAVIORAL ECONOMICS
JF - FRONTIERS IN BEHAVIORAL ECONOMICS
ER -