Journal of Applied Finance & Banking

Commitment to the ESG investing and Individual Mutual Fund Investors’ Preference: Evidence from Stated Choice Experiments

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• Abstract

   

  Using stated choice experiments, this paper tests the causal effect of mutual funds’ commitment to the ESG investing by signing the UNPRI on individual investors’ preference for mutual funds. I find that signing the UNPRI will make mutual funds more attractive to investors. The estimated WTP is approximately 4% in terms of the annual management fees, both statistically and economically significant. The effect of signing the UNPRI on investor preference is not significantly different among investors with different sex, income, risk attitude, and mutual fund investment experience. However, it is larger among the older investors than the younger.

   

  JEL classification numbers: G20, G50.

  Keywords: UNPRI, Choice Experiment, ESG.