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CSR as Factor Influencing Investment Decisions Made by Individual Investors

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  • Danuta Dziawgo

Abstract

Purpose: The factors influencing investment decisions of investors is worth to analyse due to importance of stock exchange in the modern economy. The professional investors society is highly diverse and at the same time their investment decisions are remarkably influenced by their owners’ strategy and internal policy as well as legal restrictions. On the other hand, the factors considered during investment decisions process making by the individual investors are devoid of the influence of these elements. It should also be mentioned that individual investors’ impact significantly influences the stock exchange liquidity. Therefore, the study will cover the issue of factors influencing the investment decision-making process with particular emphasis on the issues of Corporate Social Responsibility (CSR). Design/Methodology/Approach: In the article, the following research methods were used: analysis of the literature of the subject, description, comparison and desk research. The theory was complemented with author’s survey on the individual investors sample. The results of research conducted in 2020 and 2024 were presented. The study analyzes the issue to what extent CSR influences investment decisions made by Polish individual investors? Findings: The research has demonstrated that financial results are still the key factor whether to invest in a given company. There is also social acceptance for activities undertaken in the field of CSR. Nevertheless, investors considered CSR factor as having the lowest impact on their investment decision. Practical Implications: The discussion should focus around the usefulness of various parts of the integrated reporting for external stakeholders, especially individual investors. Particular attention should be paid to the part presenting non-financial data, which is currently perceived as non important factor influencing investment decisions. Originality/value: Analysis of issues such as factors influence the investment decision-making process of individual investors, company compliance with CSR, individual investors, unethical or non-ecological practices.

Suggested Citation

  • Danuta Dziawgo, 2024. "CSR as Factor Influencing Investment Decisions Made by Individual Investors," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 553-567.
    • Handle: RePEc:ers:journl:v:xxvii:y:2024:i:3:p:553-567
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Behavioural finance; CSR; individual investors; investment decision.;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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