Perception on Investing in Stocks With ESG Relevance: A Descriptive View on Influence of Key Demographic Variables and Risk Profiling of Investors

Authors

  • R Satish St. Joseph's Institute of Technology image/svg+xml
  • S Saravanan B.S. Abdur Rahman Crescent Institute of Science & Technology image/svg+xml
  • N. V. Ramachandran Department of Management Studies, SRM Arts and Science College, Chennai

DOI:

https://doi.org/10.4108/ew.4270

Keywords:

Environment, Social, Governance, Sustainability, Impact investing

Abstract

INTRODUCTION: To be purposeful beyond the return consideration by the way of giving importance to environment, society and governance of company through investing in companies that give priority to aforementioned factors by investors and their perception towards ESG is the crux of this research paper. For this several factors that measures the environment, social and governance are itemized and considered as the dependent variable.

OBJECTIVES: To know whether the influences of the three risk-acceptance levels on environment, social and governance factors were different based on selected demographic variables

METHODS: Some of the key demographic variables like Age range, Annual income and Employment status are taken as independent variables with another key variable the tolerance towards risk of the investors.  The individual and interactive effect of the demographic variable along with the key variable (risk tolerance) in manipulating the effects over the dependent variables (ESG) in the key concept of discussion in this research. The research was conducted through a structured questionnaire among the investors in Chennai region of Tamilnadu (India). Data was analyzed through SPSS and the tool used to explain the purpose of the research was MANOVA.

RESULTS: All the three demographic variables considered in the research had a significant influence over the risk tolerance of the investors in manipulating the considerations over the ESG factors.

CONCLUSION: All the three demographic variables considered in the research had a significant influence over the risk tolerance of the investors in manipulating the considerations over the ESG factors.

Downloads

Download data is not yet available.

References

Tim Stobierski, 2022, What is Sustainable Investing? Business Insights Blog. Harvard Business School Online. Retrieved from https://online.hbs.edu/blog/post/sustainable-investing

Epstein, M. J., & Yuthas, K. (2014). Measuring and improving social impacts: A guide for nonprofits, companies, and impact investors. Berrett-Koehler Publishers.

Tomasz M. Michalski (2018), Social, and Governance (ESG) Investing: A Balanced Analysis of the Theory and Practice.

Akinwumi A. Olayemi and Olamide A. Ibiyemi (2021). The Relationship between Corporate Social Responsibility and Firm Financial Performance: A Review of the Literature.

Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835-2857. DOI: https://doi.org/10.1287/mnsc.2014.1984

Grewal, R., Iyer, E. S., & Lehmann, D. R. (2018). Socially responsible marketing strategies: When and how they pay off versus when and why they do not. Journal of Marketing, 82(4), 1-20. DOI: https://doi.org/10.1177/002224299706100401

Berry, T.C.; Junkus, J.C.(2013) Socially responsible investing: An investor perspective. J. Bus. Ethics , 112, 707–720 DOI: https://doi.org/10.1007/s10551-012-1567-0

Filatotchev, I., Poulsen, A., & Bell, R. G. (2019). Corporate governance of a multinational enterprise: Firm, industry and institutional perspectives. Journal of Corporate Finance, 57, 1-8 DOI: https://doi.org/10.1016/j.jcorpfin.2018.02.004

Walsh, G., Mitchell, V. W., Jackson, P. R., & Beatty, S. E. (2009). Examining the antecedents and consequences of corporate reputation: A customer perspective. British Journal of Management, 20(2), 187-203. DOI: https://doi.org/10.1111/j.1467-8551.2007.00557.x

Kothari, S. (2019). Accounting Information in Corporate Governance: Implications for Standard Setting. The Accounting Review, 94(2), 357-361 DOI: https://doi.org/10.2308/accr-10651

Bradford, M., Earp, J. B., Showalter, D. S., & Williams, P. F. (2016). Corporate sustainability reporting and stakeholder concerns: Is there a disconnect? Accounting Horizons, 31(1), 83-102. DOI: https://doi.org/10.2308/acch-51639

Brocas, I., Carrillo, J. D., Giga, A., & Zapatero, F. (2019). Risk aversion in a dynamic asset allocation experiment. Journal of financial and quantitative analysis, 54(5), 2209-2232 DOI: https://doi.org/10.1017/S0022109018001151

Sahut, J.-M., & Pasquini-Descomps, H. (2015). ESG Impact on Market Performance of Firms: International Evidence. Management International, 19(2), 40. doi:10.7202/1030386ar DOI: https://doi.org/10.7202/1030386ar

Khalil, M.A.; Nimmanunta, K. Conventional versus green investments: Advancing innovation for better financial and environmental prospects. J. Sustain. Financ. Invest. 2021, 1–28.

Saba Khalid, Kaylene Hung, Jeremy Wiley, The ESG Value Opportunity: A Decision Point for Utilities, Climate and energy, Wiley online library, 09 November 2021, https://doi.org/10.1002/gas.22261 DOI: https://doi.org/10.1002/gas.22261

Downloads

Published

30-10-2023

How to Cite

1.
Satish R, Saravanan S, Ramachandran NV. Perception on Investing in Stocks With ESG Relevance: A Descriptive View on Influence of Key Demographic Variables and Risk Profiling of Investors. EAI Endorsed Trans Energy Web [Internet]. 2023 Oct. 30 [cited 2024 Jun. 16];10. Available from: https://publications.eai.eu/index.php/ew/article/view/4270