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The relevance of professional skepticism to finance professionals’ Socially Responsible Investing decisions

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  • Dela Cruz, Aeson Luiz
  • Patel, Chris
  • Ying, Sammy
  • Pan, Peipei

Abstract

This letter contributes to the literature on socially responsible investing (SRI) decisions by highlighting the relevance of professional skepticism, which is a core and fundamental concept in auditing, to finance professionals. Specifically, in the presence of richer and complex sources of information, from formal and informal sources, professional skepticism helps finance professionals’ in evaluating the relevance and reliability of information particularly with reference to social, environmental and ethical issues in investment decisions. We also suggest that professional skepticism helps in mitigating behavioral biases.

Suggested Citation

  • Dela Cruz, Aeson Luiz & Patel, Chris & Ying, Sammy & Pan, Peipei, 2020. "The relevance of professional skepticism to finance professionals’ Socially Responsible Investing decisions," Journal of Behavioral and Experimental Finance, Elsevier, vol. 26(C).
    • Handle: RePEc:eee:beexfi:v:26:y:2020:i:c:s2214635019302874
    DOI: 10.1016/j.jbef.2020.100299
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    References listed on IDEAS

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    Cited by:

    1. Jesús Manuel Palma-Ruiz & Julen Castillo-Apraiz & Raúl Gómez-Martínez, 2020. "Socially Responsible Investing as a Competitive Strategy for Trading Companies in Times of Upheaval Amid COVID-19: Evidence from Spain," IJFS, MDPI, vol. 8(3), pages 1-13, July.
    2. Danny Zhao‐Xiang Huang, 2022. "Environmental, social and governance factors and assessing firm value: valuation, signalling and stakeholder perspectives," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1983-2010, April.

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