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Analysis of Private Socially Responsible Investment: The Impact of Personal Concern with Corporate Social Responsibility

Author

Listed:
  • Francesco Gangi

    (Department of Economics, Second University of Naples, Corso Gran Priorato di Malta, Capua (CE), 81043, ITALY)

  • Ida Camminatiello

    (Department of Economics, Second University of Naples, Corso Gran Priorato di Malta, Capua (CE), 81043, ITALY)

  • Nicola Varrone

    (Department of Economics, Second University of Naples, Corso Gran Priorato di Malta, Capua (CE), 81043, ITALY)

Abstract

Are many years that academics and professionals dealing with the so-called socially responsible investment (SRI). Yet, still it persists today the need of a better knowledge of personal reasons underlying the investment decision. This is evidenced by inconclusive and contradictory findings of decades of empirical research. So, this paper aims at contributing to fill this gap, by deepening whether the level of personal concerns with corporate social responsibility (CSR) and the personal preferences towards the screening criteria adopted by socially responsible funds (SRFs) affect the decision to choose a socially responsible investment. In order to connect the investment choice with the personal concerns for CSR, this study refers to an experimental survey that proposes different investment scenarios and several five point Likert statements referred to corporate social responsibility. Findings confirm that the traditional risk/return trade-off is not sufficient to explain the decision to invest socially responsibly, going beyond a purely financial return. In fact, the level of personal concerns with CSR and the preference for investment screens related to the safeguard of natural environment and human rights incentive individuals to invest in SRFs.

Suggested Citation

  • Francesco Gangi & Ida Camminatiello & Nicola Varrone, 2016. "Analysis of Private Socially Responsible Investment: The Impact of Personal Concern with Corporate Social Responsibility," Review of Economics & Finance, Better Advances Press, Canada, vol. 6, pages 47-62, November.
    • Handle: RePEc:bap:journl:160404
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    References listed on IDEAS

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    More about this item

    Keywords

    Corporate social responsibility; Investment behavior; Socially responsible investment; Decision making; Risk/Return trade-off;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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