Optimistic framing increases responsible investment of investment professionals
Abstract The global warming crisis is unlikely to abate while the world continues to collectively fund the extraction and burning of fossil fuels. Carbon divestment is urgently needed to ward off the impending climate emergency. Yet responsible investments still only account for a modest share of gl...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Nature Portfolio
2024-01-01
|
| Series: | Scientific Reports |
| Online Access: | https://doi.org/10.1038/s41598-023-50965-w |
| _version_ | 1827388629059633152 |
|---|---|
| author | Dan Daugaard Danielle Kent Maroš Servátka Lyla Zhang |
| author_facet | Dan Daugaard Danielle Kent Maroš Servátka Lyla Zhang |
| author_sort | Dan Daugaard |
| collection | DOAJ |
| description | Abstract The global warming crisis is unlikely to abate while the world continues to collectively fund the extraction and burning of fossil fuels. Carbon divestment is urgently needed to ward off the impending climate emergency. Yet responsible investments still only account for a modest share of global assets. We conduct an incentivized artefactual field experiment to test whether framing divestment as a social norm, communicating it by a person with perceived credibility and expertise (a messenger), and highlighting optimistic attributes bolster responsible investment. Our subjects are investment professionals who have significant influence over the allocation of funds. We provide evidence that optimistic framing increases responsible investment. Assuming a comparable effect size, the observed increase would represent a $3.6 trillion USD global shift in asset allocations. |
| first_indexed | 2024-03-08T16:21:39Z |
| format | Article |
| id | doaj.art-9915de4f6f2a430ab58146a78acfa7b6 |
| institution | Directory Open Access Journal |
| issn | 2045-2322 |
| language | English |
| last_indexed | 2024-03-08T16:21:39Z |
| publishDate | 2024-01-01 |
| publisher | Nature Portfolio |
| record_format | Article |
| series | Scientific Reports |
| spelling | doaj.art-9915de4f6f2a430ab58146a78acfa7b62024-01-07T12:19:25ZengNature PortfolioScientific Reports2045-23222024-01-011411910.1038/s41598-023-50965-wOptimistic framing increases responsible investment of investment professionalsDan Daugaard0Danielle Kent1Maroš Servátka2Lyla Zhang3University of TasmaniaDiscipline of Finance, University of Sydney Business School, The University of SydneyMQBS Experimental Economics Laboratory, Department of Economics, Macquarie Business School, Macquarie UniversityMQBS Experimental Economics Laboratory, Department of Economics, Macquarie Business School, Macquarie UniversityAbstract The global warming crisis is unlikely to abate while the world continues to collectively fund the extraction and burning of fossil fuels. Carbon divestment is urgently needed to ward off the impending climate emergency. Yet responsible investments still only account for a modest share of global assets. We conduct an incentivized artefactual field experiment to test whether framing divestment as a social norm, communicating it by a person with perceived credibility and expertise (a messenger), and highlighting optimistic attributes bolster responsible investment. Our subjects are investment professionals who have significant influence over the allocation of funds. We provide evidence that optimistic framing increases responsible investment. Assuming a comparable effect size, the observed increase would represent a $3.6 trillion USD global shift in asset allocations.https://doi.org/10.1038/s41598-023-50965-w |
| spellingShingle | Dan Daugaard Danielle Kent Maroš Servátka Lyla Zhang Optimistic framing increases responsible investment of investment professionals Scientific Reports |
| title | Optimistic framing increases responsible investment of investment professionals |
| title_full | Optimistic framing increases responsible investment of investment professionals |
| title_fullStr | Optimistic framing increases responsible investment of investment professionals |
| title_full_unstemmed | Optimistic framing increases responsible investment of investment professionals |
| title_short | Optimistic framing increases responsible investment of investment professionals |
| title_sort | optimistic framing increases responsible investment of investment professionals |
| url | https://doi.org/10.1038/s41598-023-50965-w |
| work_keys_str_mv | AT dandaugaard optimisticframingincreasesresponsibleinvestmentofinvestmentprofessionals AT daniellekent optimisticframingincreasesresponsibleinvestmentofinvestmentprofessionals AT marosservatka optimisticframingincreasesresponsibleinvestmentofinvestmentprofessionals AT lylazhang optimisticframingincreasesresponsibleinvestmentofinvestmentprofessionals |