A Study on How Investors Decide on Socially Responsible Investments: Classification of Investment Behavior According to Companies’ Environmental Activities
Nariaki Nishino*, Kaoru Kihara*, Kenju Akai*,
Tomonori Honda**, and Atsushi Inaba***
*The University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-8656, Japan
**National Institute of Advanced Industrial Science and Technology, 1-1-1 Umezono, Tsukuba, Ibaraki 305-8568, Japan
***Kogakuin University, 1-24-2 Nishi-shinjuku, Shinjuku-ku, Tokyo 163-8677, Japan
Environmental problems must be solved urgently, and sustainable production activities are desired. This study focuses on environmental finance, which is a method of promoting sustainable corporation activities. Environmental finance allows socially responsible investment to directly contribute to corporate activities and sustainable production activities. To clarify the mechanism of eco-friendly investment decision making, 4,843 respondents took a questionnaire survey on investment decision making, based on the framework of prospect theory. The results showed that prospect theory did not always work for environment issues and that people’s attitudes when they decide on eco-friendly investments could be classified to four clusters.
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