Examining the behavior of renewable‐energy fund investors

Mutual fund investors could contribute to sustainable development by encouraging fund managers to channel their savings into the funding of sustainable energy projects adopted by firms. This study examines whether renewable‐energy investors take into account financial and/or nonfinancial factors whe...

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Bibliographic Details
Published in:Business strategy and the environment 2020-09, Vol.29 (6), p.2624-2634
Main Author: Marti‐Ballester, Carmen‐Pilar
Format: Article
Language:English
Subjects:
Attributes
Black people
black‐energy funds
conventional mutual funds
Decision making
Energy
Financial performance
fund flows
Funds
Investment
Investments
Investors
Longitudinal studies
Mutual funds
panel data
renewable‐energy mutual funds
Savings
Sustainability
Sustainable development
Sustainable energy
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Summary:Mutual fund investors could contribute to sustainable development by encouraging fund managers to channel their savings into the funding of sustainable energy projects adopted by firms. This study examines whether renewable‐energy investors take into account financial and/or nonfinancial factors when making the decision to invest in a specific fund, comparing their investment behavior with that of black‐energy and conventional investors. To this end, we have gathered information about 4,368 mutual funds (76 renewable‐energy funds, 109 black‐energy funds, and 4,183 conventional mutual funds) from January 2007 to December 2017. For this sample, we adopt a panel‐data approach with Petersen's standard errors clustered by fund and year. Our results indicate that renewable‐energy fund investors are less sensitive to past financial performance than are black‐energy and conventional fund investors, indicating that the former derive their utility from nonfinancial attributes whereas black‐energy investors derive their utility from a conditional multiattribute and conventional fund investors derive their utility from financial attributes.
ISSN:0964-4733
1099-0836
DOI:10.1002/bse.2525